It is no secret that financial stress has a significant impact on mental health, productivity, turnover and absenteeism in the workplace. By some estimates, pre-pandemic financial stress cost US businesses upwards of $500 billion per year. Lost productivity, turnover and other factors related to stress cost the average company between 11-14% of their total payroll expense. The tie between money and mental health can easily turn into a vicious cycle: worrying about money makes your mental health worse and poor mental health makes managing money harder. One study done by the Money and Mental Health Policy Institute noted that 72% of their respondents said their mental health problems had made their financial situation worse.
With the COVID-19 pandemic, even more of us are now facing further financial struggles and hardship. The Society for Human Resource Management (SHRM) confirms that financial stress, now aggravated by COVID-19 is the leading cause of lost productivity, unplanned absences, lower job performance and greater distractions among employees. So, there is a measurable incentive for employers to think more broadly about how to take positive actions around the health and wellbeing of their workforce.
A comprehensive approach to benefits and communications are key to both the company and its employees. An effective approach builds employee trust in employer leadership and encourages workers to feel more committed to their organization’s goals. Supporting employee well-being will be crucial for recovery and preparing for the new normal. Employers that embrace financial wellness solutions can see a payoff in retention, performance, well-being, and healthcare costs.
The Mass Mutual Financial Wellness Trend Study (2020) documented that companies who offered a financial wellness program showed 51% of employees were more engaged, 47% had a better perception of the organization, 40% reported that employees were more productive and focused, and 35% were less stressed. Employers who show heightened support for their employees are viewed more favorably by them and can maintain a workforce that reports greater holistic well-being.
As more and more financial wellness offerings are introduced into the benefits marketplace, employers will need to evaluate these products and services carefully, especially in regard to financial education. And they will look to retirement plan advisors to help them choose. Here are a few factors to consider in choosing an implementing an authentic financial wellness solution:
- Ask the question, “What does the financial wellness program offer, and how holistic is it?”
- Make sure the voice of the employee is included
- Partner with HR to visibly engage with employees
- Include a plan for evaluation, assessing actual results and positive financial behavior changes
Financial Fitness for Life’s award-winning financial wellness program includes providing in-person and virtual holistic wellness coaching, coupled with best-in-class technology. If your company is in need of a financial wellness solution or you’d like to have a conversation about your own unique situation, we’d love to hear from you at https://fitrusts.com/contact-
Advisory services offered through Fiduciary Investment Trusts, LLC, a Registered Investment Adviser. Fiduciary Investment Trusts, LLC doing business as Financial Fitness for Life (“FF4L”). FF4L: 6201 College Blvd., 7th Floor, Overland Park, KS 66211.