Every organizational leader knows that stressed-out employees are bad for business. They tend to be less productive and may also be more prone to call-ins, even quitting. The question that you need to answer lies in knowing what makes your team members feel high-strung and stressed out in the first place. 

According to PwC, 57% of employees report finances as their main cause of stress. Thankfully, you can do something about that concerning trend by launching an employee financial wellness program. Here’s everything you need to know. 

What Is Employee Financial Wellness?

To start, employee financial wellness refers to the state of an employee’s financial health and their ability to manage economic challenges without excessive stress. It encompasses budgeting, saving, debt management, and long-term financial planning. 

Individuals who are good at managing their day-to-day expenses and preparing for emergencies generally experience a better level of financial wellness. However, these routine tasks can become overwhelming, especially when they’re combined with big-picture responsibilities like retirement planning.

The Impact of Financial Stress on Your Workforce

Financial stress is a silent productivity killer. Employees who are worried about their money spend about three hours each week dealing with their personal finances at work. Workers who are financially strained are more likely to experience anxiety and other mental health challenges. As mentioned earlier, they also tend to call out more and may be more prone to disengagement and quitting. 

Employee financial wellness initiatives aren’t just about doing right by your employees. They are also a good tool for promoting productivity and focus, which can be great for business. 

How to Give Your Team Fiscal Peace of Mind

There are several steps you can take to promote financial wellness among your workforce. We suggest that you do the following: 

Offer Financial Literacy Resources

Knowledge is power, especially when it comes to avoiding unnecessary debt. The more your team members know about their financial limits, the better equipped they will be to avoid undue money worries. 

Start by providing access to financial education. You can host workshops or offer free online resources that cover topics like budgeting and debt management. You should also educate your team members on planning for retirement and understanding credit. The goal is to equip them with the knowledge they need to make informed financial decisions.

Provide Planning Assistance

One of the biggest sources of financial stress is the overwhelming nature of monetary planning. Consider providing financial planning services as part of your benefits package to offset these concerns. 

You could offer one-on-one sessions with advisors to help employees create budgets and plan for the future. If you are working under tighter money constraints, consider a cost-effective option like offering your team members memberships to financial planning apps or classes. A little effort can go a long way in alleviating your employees’ stress. 

Implement Savings Tools

Encourage workers to save money by offering tools like automatic savings plans or employer-sponsored retirement accounts. Match contributions to retirement savings to encourage workers to invest in their future. Offering these types of incentives can also be valuable for attracting and retaining talented employees. 

Generally, you should avoid paycheck advance programs, as these may encourage poor money management practices and lead to more stress. Focus on tools that will help employees make better use of the money they have instead of letting them borrow funds to solve short-term problems. 

Launch an On-Demand Pay Program

Offering an on-demand pay program provides employees with greater financial flexibility and reduces the stress associated with living paycheck to paycheck. Additionally, this initiative can enhance employee satisfaction and retention, as it demonstrates a commitment to their well-being and work-life balance.

AssetHR offers on-demand pay for all of our clients with an additional perk program that can be a great tool for helping your employees make money-saving moves that alleviate their financial stress. Our customizable perk programs provide your employees with discounts and savings on everyday purchases. These small extras can add up and help workers stretch their dollars further. 

Promote Employee Financial Wellness With AssetHR

AssetHR is a leader in human resources optimization and employee management. We help you get the most out of your talented team by putting them in a position to thrive both personally and professionally. We can even contribute to your employee financial wellness initiative via our perk programs. Explore our voluntary benefit offerings to learn more, and let’s discuss how you can support your team’s wellness.

Posts that the posts are not intended to provide legal advice and that readers should consult with their attorneys on any matter covered in the article.