Studies show employers who offer wellness benefits to employees see an increase in efficiency in the workplace, in addition to higher levels of productivity and satisfaction. More than 50 percent of people indicate that they are stressed about their finances and slightly less spend between one and three hours weekly distracted by their finances at work.
Financial education alone is no longer considered an adequate solution and with both Boomers and Gen Xers inching closer to ‘normal’ retirement age, it’s time we think about this problem differently—along with a viable solution.
According to PwC’s latest wellness survey, 25 percent of respondents said access to unbiased financial guidance is the employee benefit they most desire. That’s one-quarter of people who are asking for financial wellness. Additionally, 90 percent of people are already looking for financial help outside the workplace. By giving people what they seek, i.e. access to the tools and resources they need to make sound financial decisions, people can be empowered to make and stick to realistic financial plans.
These benefits, while great for employees and their familiars, can also be profitable for employers. Financially stressed workers are absent from work on average 3.5 days per year, according to Willis Towers Watson. That’s $3500 per person per year in time alone for a company with a blended hourly rate of $125.
Turnover costs are staggering, and, as previously mentioned, people who are financially worried are spending work hours addressing their issues. In fact, according to the Mercer LLC Inside Employees’ Minds report, 20 percent of people resign due to their financial stress. Financial wellness benefits and effective programs encourage employees to take action, so that they can be more focused, present, and healthy—mentally and physically. An effective, authentic program people engage with also encourages company tenure, thereby decreasing turnover and its associated costs.