Why employee financial wellness is important for your business

Healthy employees perform better, right? Yes! But I’m not just referring to physically healthy employees, I’m referring to financially well employees. According to a survey from CreditCards.com, 47% of Americans are currently holding credit card debt, and a recent Morgan Stanley Study states that 78% of employees who are experiencing high financial stress admit they are distracted by it at work. 

Financial stress affects individuals across all income levels, so financially stressed employees can be found throughout your entire company and can ultimately affect your bottom line from all levels. Employees who are not feeling financially well are burdened by these stresses and may even feel out of control, which can be consuming and exhausting, and ultimately lead to overall dissatisfaction at work. Most would agree that happy employees are better for your business, but how does a financially unwell employee impact your business, and what can you do to keep your staff financially well? 

1. Decreased Employee Commitment and Engagement 

Whether or not an employee directly correlates their budget concerns with the salary you are giving them, money concerns can play a part in the level of engagement and/or commitment that employee feels towards their job. Financially stressed workers are more likely to show signs of dissatisfaction, which can easily snowball to lowered morale, a negative attitude, and a lack of longevity. What does this boil down to? Feeling financially unwell can lead to disengagement, and a disengaged employee- is not a productive one. 

2. Increased Employee Turnover 

Let’s face it, employee turnover is expensive and can be time consuming depending on the position and level of training needed. The overall happiness of an employee includes many factors, and although not all are directly correlated to pay, feeling financially unwell has its way of leaking into all aspects of your day to day, resulting in a discomfort that can easily push an individual to change an outside factor, such as their current career. 

3. Decrease in Employee Overall Health 

Numerous studies have shown that stress has many side effects on our overall health, such as weight gain, depression, and sleep dysfunction, just to name a few. Those feeling financially unwell are more likely to suffer from these side effects which not only affects work performance but also increases unscheduled time off. According to Savology, financially stressed employees miss 3.5 more workdays each year, and 58% of employees experience financial stress that impacts their work. 

Employees that do not have to look outside their employer for financial counseling or other financial wellness tools are more engaged, committed, and more likely to put their best selves forward more of the time. Consider some of these options as a way to help employees improve their financial wellness and overall work performance.

• Offer quarterly financial counseling where employees can learn how to better manage their money, decrease spending, improve their credit score, and more. 
• Have self-serve educational resources available for employees to access at their leisure. 
• Identify an in-house expert within your own company to share savings tips and address common financial issues. 
• If your company offers a 401(k) plan or an Employee Assistance Program, leverage those resources to see if they offer educational tools or resources.

The well-being of your employees goes beyond physical health. Protect your most valuable assets by making financial education a benefit and perk of working at your company.