5 Ways to Promote Greater Productivity through Financial Wellness Programs
Employees are worried about their finances. They worry about them in the evenings, on weekends and during working hours. Oftentimes, one of the major problems is a lack of access to financial literacy resources. In a recent 2020 study, they found that 47% of respondents had difficulty finding $250 for emergencies and had to resort to credit instead.
With that said, the ultimate goal is financial well-being. It’s not enough for employees to learn about what constitutes financial well-being; they must put it into action to achieve success. Employers can help by providing financial wellness programs for their employees. Here are five advantages of a financial wellness program:
1. Engagement. Are your employees going through the motions or are they creating and sticking to their financial plans? Financial worries can increase employee stress which leads to distraction at work. It has been shown that offering a financial wellness program breeds loyalty and focus. 6 in 10 workers say they are more committed to their employer and more productive at work when they have a financial wellness program.
2. Lower health care costs. Financially unhealthy, stressed employees frequently have higher health care costs. Financially stressed employees may increase corporate health care budgets, as their health care costs run 46% higher than non-stressed employees. Lowering overall health care expenses tend to lead to lower employer costs.
3. Fewer incidents of “presenteeism.” “Presenteeism” is a term that describes lost productivity by employees who are physically present, but not working. They are distracted by outside work stressors. This stagnant time costs employers in lost wages, lost productivity and reduced job performance.
4. Retention and attraction. As stated, employees say financial wellness programs demonstrate that their employers care about them, encouraging commitment to the company. Losing employees costs money in recruitment efforts and the training of new hires. Turnover can cost employers 120-200% of the salary of the positions affected. The presence of this program in your employee benefits package may also help attract new talent.
5. Retirement saving. Employees who have their budgets and debts under control are much more likely to save via their 401(k) plan and increase their contributions as their financial situation improves. These employees are also less likely to take a loan from their 401(k) plan.
It’s important to understand the advantages of implementing a financial wellness program. These programs can benefit your employees in the form of improved employee morale and boost their productivity at the same time. It’s a win-win situation for all!
Here at Gasaway Investment Advisors we offer a 6-week financial wellness program. To learn more about our program, click here or give us a call.
 C. J. Marwitz. “Employee Financial Wellness: Looking Ahead to 2021.” BenefitsPro. December 4, 2020.  Prudential. “Wellness Programs Earn Their Place in Human Capital Strategy.” June 2019.  Jane Clark. “Offering financial wellness education could improve employee productivity.” January 29, 2019.  Umass Lowell. “Financial Costs of Job Stress.” 2019..