As an employer, one of your top priorities is likely to ensure that your employees are happy and productive. Financial wellness can play a significant role in employee satisfaction and performance. According to a survey by the Financial Health Network, employees who feel financially secure are more likely to feel satisfied with their job and overall quality of life. In contrast, employees who are struggling financially may be more likely to experience stress and dissatisfaction at work.
One study conducted by PwC found that financial wellness programs can lead to improved employee engagement and productivity. The study found that employees who participated in financial wellness programs reported feeling more confident in their ability to make informed financial decisions. They were more likely to feel satisfied with their job overall.
Additionally, a survey by the Society for Human Resource Management (SHRM) found that employees who feel financially secure are more likely to stay with their current employer. This can lead to improved retention rates and reduced employer recruitment and training costs.
While financial wellness may not be a silver bullet, it can be a key piece of a comprehensive culture that seeks to ensure employees are well provided for.
Here are three ways employers can support their employees' financial wellness:
- Offer financial education resources
Many employees may not feel confident in their financial knowledge or may not know where to turn for help with financial planning. By providing resources such as on-site seminars, webinars, or access to financial planning services, you can give your employees the tools they need to make informed financial decisions.
- Implement a student loan repayment assistance program
For many employees, student loan debt can be a major source of financial stress. By offering a student loan repayment assistance program, you can help your employees pay down their debt more quickly and alleviate some of that burden.
- Provide access to financial planning services
For employees who are struggling to create a budget, save for retirement, or make other financial decisions, having access to professional financial planning services can be invaluable. Offering this benefit can help your employees feel more confident and in control of their financial future.
However, trust is the key to delivery in any of the three above solutions. We have witnessed a significant movement in the retirement plan industry to use financial wellness as a Trojan Horse to sell more products and solutions to participants. Education, loan repayment assistance, and financial planning require a foundation of trust that is quickly lost if the provider is conflicted in the guidance they provide.
You can create a more positive and productive work environment by supporting your employees' financial wellness. Take the time to assess your current benefit offerings and consider how you can better support your employees' financial needs.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice. Any views expressed herein are those of the author(s) and not necessarily those of Multnomah Group or Multnomah Group’s clients.