iStock/Nuthawut Somsuk
As we enter yet another month of historically high employee quit rates, employers are understandably becoming desperate to attract and retain talent. Many businesses are beginning to supplement rising salaries they simply cannot afford with soft perks like pet insurance and house plant budgets. But, many are overlooking a benefit that employees are already asking for–financial wellness.
Mort than half (58%) of employees are stressed out about their personal finances. And what’s worse is that people admit to spending an average of 15 hours a month worrying about their financial situation while at work, causing a massive loss in productivity. The impact of financial stress doesn’t stop there. Forty-nine percent of employees also report that their money worries had a severe impact on their mental health just in the past year.
While nearly 46% of companies already offer some form of financial wellness program to their employees, most of these programs are missing the mark. This is where understanding the real meaning of financial wellness comes into play.
Before you dive into evaluating a new or current financial wellness solution for your people, it is vital to understand what the term means exactly and how a solution would work for your organization. So, we’ll start with what we know financial wellness definitely is not, and then we’ll hand it off to the experts to tell us what it really means.
Run a quick Google search on financial wellness, and you will find hundreds of results that give you definitions across the board. Unfortunately, the term has become a popular buzzword with no singular definition. To further add to the problem, there are numerous solutions out there claiming to be holistic financial wellness and spinning up their own definitions. Let’s take a look at some examples.
Many employers fail to deliver holistic financial wellness because they are only checking a box to appear employee-oriented. This won’t cut it for long because employees want more and have even admitted to considering other companies who care more about their financial health–72% of them!
Now that we understand what Financial Wellness is not, let’s dive into what it really means to be financially well.
We look to the experts at the Consumer Financial Protection Bureau (CFPB) to define Financial Wellness for us.
According to the CFPB, financial well-being refers to financial security and freedom of choice for the present and future. This entails a person’s ability to:
If there is one thing we know for certain, it’s that a true financial wellness solution goes well beyond the basics and empowers employees to take control of their entire financial life. After all, their financial stress can cost your organization over $1,900 per worker per year.
A comprehensive program should work to reduce financial stress, promote better money management, encourage saving, offer a sound retirement plan, and provide real, human guidance every step of the way.
Employees vary in their needs and goals, so it’s critical that a solution be personalized. While one employee may require additional support in debt management, another may need support with the basics like completing a W4 form. Financial Wellness creates opportunities that improve economic outcomes for employees at all income levels, not just high earners. By promoting incremental positive behavior change, even lower wage-earning employees can build significant savings, improve credit scores, and pay off debt.
Providing your employees with Financial Wellness offers a better quality of life. In turn, it improves employee experience and makes your company a better place to work.
Questis is a comprehensive financial wellness solution providing the technology, tools, resources, and one-on-one coaching needed to create sustainable financial behavior change.
With Questis, you establish yourself as an employer invested in the health and well-being of your employees. As a result, you recruit top industry talent while decreasing employee turnover and increasing your employee retention rate. By addressing the root causes of financial stress, implementing Questis can also result in lower healthcare costs and increased benefit adoption.
Invest in your people, and your people will invest in you. See how Questis could be your business advantage
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Major themes include compensation and leave, but employers also will need to note legislation that adds retaliation protections, attorneys said.
As the economy wavers, employers may need to turn their sights to retention rather than recruiting.
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Keep up with the story. Subscribe to the HR Dive free daily newsletter
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Get the free daily newsletter read by industry experts
Major themes include compensation and leave, but employers also will need to note legislation that adds retaliation protections, attorneys said.
As the economy wavers, employers may need to turn their sights to retention rather than recruiting.
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