Investing in your employees can yield a great return
Improved financial wellness among your employees can have a major impact on your business. Employees spend an average of 13 hours a month worrying about money while at work. 16% of employees spend more than 20 working hours worrying. Those are lost productivity hours. Financial stress can impact nearly every aspect of your life, but often one of the biggest areas is health. Two of the main areas are depression and anxiety which can both lead to excess call offs among other things. By increasing your average employee's financial wellness score, you will in turn increase your productivity, lower your absenteeism and turnover rates and decrease your overall healthcare costs.
It's no secret that Americans are stressed out about money. 78% of Americans are living paycheck to paycheck and that's not just those who are earning a measly wage. Chances are that some of your high paid executives are struggling as well. In a recent study by Mercer, 14% of those in the two lowest financial wellness groups have household incomes greater than $100,000.
So what is financial wellness? Financial wellness is an overall term we use to describe a person or family's perceived financial state. As described by the US Consumer Financial Protection Bureau, financial wellness encompasses these four elements:
A person's control over day to day finances
A person's capacity to absorb a financial shock
A person's track to meet financial goals
A person's financial freedom to make choices that allow him/her to enjoy life
Of those with a low financial wellness score, only 8% are most concerned with their saving for retirement. The other 92% worry about more current problems and issues like keeping up with current monthly expenses (62%) and stressing over credit card debt (14%). The problem with most financial wellness programs is that they focus primarily on future goals like saving for retirement, which is critical of course, but they ignore much of the day to day problems that the average American is facing. We can't run before we can walk. It's urgent that we begin to address the immediate needs first, before we can focus on the future.
The Workplace Financial Wellness program I'm currently designing will encompass more of the day to day concerns, but certainly not eliminating the concern for the future. The program will consist of a mix of workshops and 1 on 1 coaching and can be tailored to suit your employee’s needs, as well as your investment.
Contact us today for more details and to talk about your company!