Financial Wellness Program: 7 Reasons Why Your Company Needs One
We all know the saying, “health is wealth.”
But what about financial wellness?
Just like physical health, financial health is essential to a person’s overall well-being. According to a recent study, 75% of employees claim an employer-sponsored financial wellness program would positively affect their financial stress. That’s not surprising when you think about it; after all, money is one of the leading causes of stress in America.
When employees feel financial security, they’re able to focus on their jobs and be more productive.
In fact, nearly 7-in-10 working adults report they would perform better at work if their employer offered more financial wellness benefits, NAPFA Consumer Survey shows.
So what can businesses do to help their employees achieve better financial health?
The answer is simple: implement a financial wellness program!
Financial wellness programs are becoming increasingly popular in the corporate world, and for good reason.
There are a lot of ways to make your employees’ lives easier and reduce stress levels, but few of them are as impactful as a financial wellness program.
What is a Financial Wellness Program?
A financial wellness program is a set of tools and resources designed to help employees improve their financial well-being.
A good program will include anything from tips on how to manage credit card debt, how to establish an emergency fund, building your financial priorities, and gaining financial independence.
Many programs will also cover what is a retirement savings plan, how to establish good financial habits, and why you should practice good money management.
Some financial wellness programs even offer access to personal finance coaches or credit counseling. Some even offer discounts on financial products and services. I’d be a little leary of these as some are just trying to make a commission. We like the purely educational type programs like the one from the Hoopis Performance Network.
The goal of a financial wellness program is to educate employees and help them make smart financial decisions to improve their overall economic life.
Financial wellness programs are becoming increasingly popular in the corporate world because they’re a great way to reduce stress levels and improve productivity. Implementing a program at your company is a great way to show your employees that you care about their financial health.
Types Of Financial Wellness Programs
There are a lot of financial wellness programs to choose from, so it’s important to find one that fits the needs of you and your employees. Some popular program options include:
- Online Educational Financial courses: These courses can help employees learn about topics like what is a savings account, managing your personal finances, how to be prepared for financial emergencies, and ways to save money when shopping.
- Financial Coaching: Employees can meet with a coach to discuss their financial goals and create a plan to achieve them.
- Financial Education seminars: These seminars can cover topics like investing, retirement planning, and saving for a rainy day.
No matter what type of program you choose, the important thing is that your employees feel supported and empowered to take control of their economic life and help them to eliminate financial worry.
While the exact details of each wellness program vary from company to company, as does the financial wellness definition, they all share a common goal: to help employees improve their financial literacy and improve their financial health.
When employees achieve financial wellness, they’re able to focus on their jobs and be more productive.
7 Reasons Why Your Company Needs a Financial Wellness Program
There are many reasons why your company should consider implementing a financial wellness program. Here are the top 7 Reasons to implement now:
1. They improve employee productivity
As we mentioned earlier, financial stress can have a major impact on employee productivity. Introducing a financial literacy program can help employees reduce the stress of their financial life and increase focus at work. In turn, this can lead to a significant boost in productivity and get them on a path to a better financial future.
2. They improve employee retention
Another important reason to implement a wellness program is that it can help improve employee retention. Financially stressed employees are more likely to look for a new job. Offering a financial wellness program is a great way to show prospective employees that you’re committed to achieving financial wellness. It’s also a great way to keep your existing employees happy and engaged.
3. They lead to lower healthcare costs
This is likely because financial stress can lead to physical and mental health problems. By helping your employees gain financial literacy and financial security, you help them stay healthy thus reducing your healthcare costs.
4. They improve employee morale
A strong company culture is essential to the success of any business. If employees are stressed about their finances, it can hurt their morale. A financial wellness program can help improve morale by providing employees with the resources and support they need to manage their financial wellness journey.
When you implement a financial wellness program you’re also creating a culture of overall wellness in your workplace. This can have a positive impact on your company as a whole, making it more attractive to prospective employees and investors.
There’s a direct link between financial health and physical health. Studies have shown that employees who are stressed about money are more likely to experience health problems such as anxiety, depression, and insomnia.
5. They increase employee engagement
Employee engagement is another important reason to implement a financial wellness program. According to a report by Bank of America, 62% of employees are stressed about their financial well-being.
Implementing a financial wellness program can help improve employee engagement and productivity by reducing stress levels and providing resources to help employees manage their financial well-being.
Engaged employees are more productive, have lower absenteeism rates, and are more likely to stay with a company.
6. They are easy to implement and Cost Effective
Many financial wellness programs can be implemented quickly and easily, with minimal disruption to your business.
Financial wellness programs can save your company money in the long run by improving employee productivity, retention, engagement, and health.
In addition, financial wellness programs are often less expensive than traditional employee benefits such as health insurance and retirement plans. Some programs can even be paid for by the company’s health insurance provider.
7. They improve employee recruitment
In today’s competitive job market, employers need to offer more than just a good salary to attract top talent. Employees are looking for companies that offer benefits and services that improve their quality of life. Financial wellness programs can give your company an edge in the recruiting process by showing potential employees that you’re committed to practicing financial wellness.
Why A Financial Wellness Program is Good for Businesses
A Financial wellness program is good for businesses because it can lead to increased productivity. When employees feel financially secure, they’re able to focus on their jobs and be more productive.
In addition to increased productivity, financial wellness programs can also lead to lower healthcare costs. How can that be?
Well, the stress from their finances can directly impact an employee’s overall health. One study also suggests that people who are financially stressed tend to skip going to a Doctor or health care clinic. Some don’t even have an emergency fund set up to help cover unexpected medical costs.
So not only can these programs help improve productivity, but they can also lead to reduced healthcare costs.
Wellness programs are also good for businesses because they help attract and retain top talent. A recent Bank Of America report revealed that 84% of employers now say that offering financial wellness tools can help reduce employee attrition, and 81% say financial literacy tools help attract higher quality employees.
A company is only as good as its employees, which is why it’s so important to keep them happy and engaged. In the same report by Bank of America, 62% of employees said they are stressed about their financial situation. Implementing a financial wellness program can help improve employee engagement and productivity by reducing stress levels and providing resources and support to help employees manage their finances.
How To Implement a Financial Wellness Program?
If you’re interested in implementing a financial wellness program at your company, there are a few things you need to do:
1. Set objectives and goals
The first step is to set objectives and goals for your financial wellness program. What do you want to achieve? Do you want to improve employee productivity? Retention? Engagement? Health? Reduce workload for your HR staff? Set specific goals and objectives for your program so you can measure your success.
2. Choose a financial wellness provider
There are many financial wellness providers to choose from. Do your research to find a provider that offers the services and support you need to meet your objectives and goals. Our Top Pick is the Hoopis Performance Network FinWell Program.
3. Communicate with employees
Once you’ve chosen a financial wellness provider, it’s important to communicate the details of the program to your employees. Let them know what’s available, how to access it, and how it can benefit them.
4. Evaluate and adjust
Be sure to evaluate your financial wellness program regularly to see if it’s meeting your objectives and goals. Make adjustments as needed to ensure that your program is effective in helping your employees achieve financial security and making a positive impact on your business.
Summary
Financial wellness programs can benefit both employees and employers. If you’re interested in implementing a financial wellness program at your company, schedule a free consultation with us here.
Need help getting started?
Hoopis Performance Network offers a free demo of its financial wellness program to help you determine the best way to improve your employees’ financial well-being. Click below to schedule your free demo.
Benefits Gained
- Reduced stress levels for employees
- Improved productivity levels
- Increased retention rates
- Improved employee morale
- Strengthened relationships between employer and employees.
Financial wellness programs offer several benefits for both employees and employers. By reducing stress levels, increasing productivity, and improving retention rates, a financial wellness program can help improve the bottom line for your company and get your employees on the path to financial freedom.
Conclusion
If you’re looking for a way to improve employee productivity, decrease attrition rates, and lower healthcare costs, then look no further than a financial wellness program! Financial wellness programs offer numerous benefits for businesses, so there’s no reason not to implement one at your company today. Your employees will thank you for it!
