Money is the #1 source of stress for employees, according to a PWC Financial Wellness Survey in 2020, and there's a good reason for it. It dictates every decision in every area of their lives. At the same time, it has the power to transform it. Traditionally the focus on employee benefits has been the usual: healthcare, vision, dental, 401k with a match. But what about financial health?
We consider financial health to be more than the numbers in the bank account. It's a person feeling empowered in their finances, and therefore their life. Financial health can look different for each of your employees in your company. However, the benefits of implementing this kind of program are priceless. As noted in a Forbes article published in June 2021, it allows for increased productivity, higher employee retention, individuals feeling more prepared for retirement and higher satisfaction on the job. Not surprisingly all that reduces stress levels.
More importantly, this also makes your organization a more attractive place to work, therefore, it will help bring in a higher caliber of talent as well. 72% of those surveyed said they would be more attracted to another company that prioritized financial well-being over their current one. Financial health isn't just a trendy topic, it is an important, yet often overlooked, facet of the work culture when it should be integral. As the facts and figures demonstrate, it truly needs to be prioritized to alleviate stress for workers. This, in turn, makes for a happier environment. It enhances company profitability as well.
In the 2021 PWC study, 63% of employees mentioned their financial stress has risen since the start of the pandemic. Another key fact worth noting is that financially stressed employees are twice as likely to leave their company. Therefore, it's critical for employers to have a financial health plan in place as a part of their benefits package. This will not only help eradicate the mental duress employees are facing but improve their general health and work performance. This will make it better for the bottom line for your company as well.
It's obvious having improved financial health is the key to success for organizations, but the current financial industry caters towards the 1%. In many cases, people don't even engage with their money at all. This means addressing financial health is not happening, either.
Prudential discovered 83% of employers offered some sort of financial wellness program as part of their benefits. Interestingly, both employers and employees mentioned being more satisfied with their benefits package because of it. As a consequence, implementing this kind of program is critical for organisational and personal success.
Here at Otto, we help employees with their financial health in a few ways. It begins with assessing the situation and creating a plan chock full of actionable steps. They will receive personalized financial coaching on their goals. They will hone their knowledge through dedicated learning resources just for them. Interested in learning more about our financial health program? Schedule a demo with us today.