Providing for your employees doesn’t stop with caring for their mental and physical health. Being aware of their financial needs and wants is critical to creating a supportive and productive space. An employee financial wellness program can help foster that environment.
What is employee financial wellness?
Employee financial wellness is a program of tools and services employers can create to help employees reach financial goals. It can bring structure to financial education and goal setting. Financial stress can negatively impact well-being and productivity. Offering your employees a financial wellness program can help relieve them of that stress.
Financial wellness and well-being aim to improve your employees’ lives. While they sound similar, the two terms have a few differences. Financial well-being considers how pleased your employees are with their current financial situation. These programs often take a broader approach by assessing an employee’s physical or mental health. On the other hand, financial wellness provides the tools that help support their financial literacy.
Examples of financial wellness include anything that sets an individual up for success, such as:
- Budgeting tools
- Educational content
- Financial coaching with a fiduciary advisor
- Tailored budget plans
Why should your firm offer a financial wellness program?
Simply put, caring for your employees’ financial health improves their well-being and your business. A 2023 PWC Employee Financial Wellness survey found that 57% of surveyed employees see finances as the top cause of stress. It makes sense then that 74% of workers seek guidance regarding financial decisions.
Adopting a financial wellness program can help employees meet personal goals and increase productivity and employee retention. Improved trust in your company as an employer and a brand isn't too bad of a benefit, either. Meaningful change doesn't happen overnight, though. A well-designed strategy and commitment to sticking with it long-term is needed for a financial wellness program to succeed.
Offering perks like financial coaching can help you attract and keep top talent, save money on training (thanks to higher retention rates), and add to a positive work culture. Whatever incentives you offer, your program should try to account for all employees in your business. This is where the concept of holistic financial wellness comes in.
What is holistic financial wellness?
Mental health and financial unease can greatly affect employees’ productivity. That’s why you should view your financial wellness program as only one piece of the puzzle for promoting employee welfare. Your company employs people from all walks of life. Not everyone expects or wants the same thing from their employer’s wellness program. That’s why crafting a well-rounded approach to mental, physical, and financial health is so important. This can help ensure you’re supporting everyone’s needs.
Every company will differ in its programs as offerings should align with your workforce’s needs and interests. Student loan assistance may be more fitting than financial coaching for a young startup company. On the other hand, a company with a workforce closer to the population average of 38.8 years old may expect more interest in retirement planning and budgeting. No matter how your program looks, it’s essential to take a step back and really get to know who your employees are.
How do you benefit from the costs of financial wellness services?
Recruiting new talent while keeping current talent will continue to be a trend that every company should strive for. A well-oiled financial wellness program for your employees can bring multiple short- and long-term benefits. It can also supply significant cost savings for your business. With this, your workers can find more time to be productive rather than worry about their finances.
Everyone thinks about their financial future. Help your workers gain peace of mind knowing you care about their financial goals. Marsh McLennan Agency can help you deliver a financial wellness program tailored to your employees. From monthly webinars and self-help resources to individual financial coaching sessions and student loan benefit solutions, utilize the tools of Marsh McLennan Agency’s financial wellness knowledge.
