Businesses are often viewed as putting their profits first ahead of everything else, including their employees. Long work hours and poor employee benefits programs only help to perpetuate these optics and Covid has only exacerbated the situation.
For many employees, the pandemic opened the door to remote work, which allowed them to spend more time at home with a glimpse into a different kind of work-life balance, causing many to reevaluate what they need and want from their employer.
Many have also come to the conclusion that trading their overall wellness for a job is no longer worth it and have quit in order to find a work environment and culture that can better meet their needs and expectations.
The new reality is an empowered workforce which has put pressure on employers to improve the workplace in ways that help retain their employees and enable them to thrive.
Unwell employees cost businesses billions of dollars each year through lost productivity. A 2021 Gallup report found that 64% of U.S. workers were actively disengaged. The financial cost, roughly 200% of each departing employee’s salary to hire and train new workers. Altogether, the expense amounts to over $550 billion per year for employers.
There’s a way out for employers. Investing in the financial wellness of employees not only reduces employee turnover it has been forecasted to have a ROI of more than 2x for programs that are in place for three or more years.
Every workplace is different and every employee has unique financial wellness needs, so what works for one employer may not be the exact same program for others. However, there are some baseline areas that any employer can focus on to support the financial wellness of their staff, improve productivity and reduce burnout.
Borrowing - Affordable loan rates available to employees. If employees need to pay off credit cards or payday loans or simply need extra finances for an emergency they now have a better borrowing option. The loan repayments are deducted straight from their paycheque so there's never a worry about missing a payment.
Learning - Financial wellness starts with knowledge. Financial wellness education offerings will help employees become more aware of their overall financial wellness and ensure they’re able to better plan for a stable and successful financial future.
Saving - Encouraging employees to automatically direct a percentage of their pay cheque to a savings or investment product specifically designed to meet their important financial goals and aspirations.
Investing in the overall financial wellness of employees directly translates into an investment in the overall productivity of a business. It's Employers that understand and address these financial wellness needs of their workforce that are destined to flourish in the years to come.