The importance of financial wellbeing for employees: Why credit unions must invest in supporting staff wellness

What is financial wellbeing? It’s the state of being in control of one’s current and future financial situation. It’s the ability to meet financial goals and handle unexpected expenses without stress. Financial wellness is about a healthy state of living that includes a balance of meeting the financial needs of the moment while living a healthier and happier life.

Recognizing the crucial role financial well-being plays in overall employee satisfaction and productivity, credit unions must prioritize supporting the financial health of their staff.

Here are three reasons credit union management must prioritize financial wellness within their organization.

1. Improved employee engagement and productivity

Financial stress can take a toll on staff’s mental and emotional well-being, ultimately impacting their productivity and engagement at work. According to a survey by PwC, nearly 59% of employees reported that financial matters were the most common source of stress in their lives. When your staff is burdened with financial worries, their ability to focus on their work and perform at their best diminishes. It impacts how they interact with coworkers and members, which is a reflection of the credit union’s brand.

By investing in the financial well-being of your credit union staff, you can create a positive work environment that fosters engagement and productivity. When employees feel supported in their financial journey, they experience reduced stress levels and are better equipped to handle work-related challenges. This improves concentration, creativity, and job satisfaction, resulting in better outcomes and overall mission success.

2. Enhanced employee retention and loyalty

Financial well-being is considered to be a significant factor in employee retention and loyalty. People who feel financially secure are more likely to remain with their current employer, reducing turnover costs and retaining valuable talent within the credit union. Additionally, employees who perceive their employer as invested in their financial well-being are likelier to develop a better sense of loyalty.

Credit unions must prioritize supporting their staff’s financial well-being to cultivate a workplace culture that values employee retention and loyalty. By offering financial education programs, access to financial resources, and personalized assistance, credit unions can empower their employees to make informed financial decisions, ultimately contributing to their long-term financial stability. It fosters a deeper trust and understanding.

But these educational programs must be dynamic, engaging, entertaining, and relevant. You cannot simply do the same thing expecting a different result.

3. Positive employer branding and competitive advantage

Even with the up-and-down economic news, people are increasingly seeking out employers that prioritize their overall well-being, including financial health. Credit unions actively investing in supporting the financial well-being of their staff establish themselves as attractive employers, gaining a competitive edge in attracting and retaining top talent.

Credit unions are rooted in promoting financial literacy and empowerment. Supporting employees’ financial well-being aligns with your core values and mission. By integrating financial well-being initiatives into your organizational culture, you strengthen the employer brand, becoming known as a company that genuinely cares about its employees’ financial success. This positive reputation not only attracts high-quality talent but also enhances the credit union’s overall brand and market position.

So how can credit unions invest in their staff’s financial well-being?

1. Provide Financial Education and Resources: Offer financial education programs and resources, such as workshops, webinars, or online resources, that covers basic financial topics along with aspirational goals such as starting a business or becoming a homeowner. Similar to the efforts to encourage members to use financial education programs, you must encourage employees to take advantage of these opportunities to enhance their financial knowledge and empower them to make informed decisions. There are better strategies you can use to make this happen.
2. Implement Employee Assistance Programs: Establish confidential employee assistance programs with exciting brands. These programs can offer personalized advice, guidance, and support to employees facing financial challenges. By partnering with reputable financial professionals, credit unions can ensure their staff receives comprehensive assistance tailored to their specific needs.
3. Offer Workplace Benefits: Consider incorporating financial wellness benefits into your overall employee benefits package. These can include some of the traditional benefits: retirement savings plans with employer matches, flexible spending accounts, or employee loan programs with reduced interest rates. But consider out-of-the-box ideas like supporting side hustles, creative interests, travel dreams, loyalty sabbaticals and more.

Investing in the financial well-being of staff is a win-win situation for credit unions. It not only benefits the individual employees by alleviating financial stress and promoting long-term financial stability but also contributes to the success and growth of the credit union as a whole.

By prioritizing financial well-being, credit unions can build a stronger, more engaged, and loyal workforce that drives their mission forward and ensures a prosperous future for all.

Again as a reminder: don’t simply do what’s been done before or offer the programs that your members aren’t using themselves. This is an opportunity to do something much different and impactful.