Financial Wellness Programs
In today's rapidly changing and competitive business landscape, companies are considering how employee well-being is crucial to achieving long-term success. One aspect of well-being that has gained significant attention in recent years is financial wellness. As such, financial wellness programs have emerged as a valuable tool for employers to support their workforce and enhance employee engagement and satisfaction.
A lack of financial knowledge can hold anyone back. When left with few reliable financial resources, employees may continue to struggle. As diverse as the workforce is, so are their financial knowledge and competency levels. Programs that aid employees in their financial wellness may help them with related difficulties. And, when employees' well-being thrives, employers may see several advantages."
This article explores why financial wellness programs are important and provides an overview of the types of benefits these programs generally offer employers.
Employers may offer a financial wellness program to help combat employee stress around money matters. These programs aim to educate employees to help them manage their money and reduce financial burdens. Financial wellness programs often include the following topics or components:
Resources may be personal financial coaching or counseling, online education, budgeting tools and credit resources. In addition to financial wellness programs, employers may offer an employee assistance program (or EAP) that includes financial wellness services or a retirement plan. Lastly, financial well-being could be a core component of an employee wellness program, as healthy behaviors are encouraged.
The cost of living continues to rise, significantly impacting employees' financial well-being. According to a 2023 report by Bank of America (BoA), not even half (42%) of employees rate their financial wellness as good, which was an all-time low for the company's data. Furthermore, thinking about finances in the long term is proving to be more difficult for employees. Just 31% of employees still prioritize their retirement, down from 45% in 2022. Also, many (45%) say they are not saving for future health care costs and, instead, are paying off debt, saving for unexpected expenses and managing caregiving costs.
While many employers feel somewhat responsible for their employees' financial wellness, only some have begun offering financial wellness programs. The BoA report found that about 2 out of 5 employers offer financial wellness programs. With
so many financial obligations straining employees, there's an opportunity for employers to step up and help boost their workers' financial education and overall wellness.
While financial wellness programs have obvious benefits for employees, such support is also advantageous for employers. Consider the following reasons more employers are considering financial wellness programs:
Financial wellness programs aren't just an advantage; they are an investment that pays off in a myriad of ways, benefiting both employees and employers.
Financial wellness programs are a valuable investment in an organization's workforce. By addressing the financial needs of employees, employers not only enhance workers' well-being but also create a more engaged, loyal and productive team. As employers, it's essential to recognize the positive impact that financial wellness programs can have on both a company's success and employees' lives. Implementing a comprehensive financial wellness program is a step toward building a happier and healthier workplace for all.
Contact us for more information about financial wellness programs.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.
Marty has spent most of the last 20 years developing software in the marketing space and creating pathways for software systems to talk to each other with high efficiency. He heads our digital marketing efforts as well as oversees any technology implementations for our clients. As a partner, Marty is also responsible for internal systems in which help our team communicates with each other and our clients.