Employers

Employer-Employee Financial Wellness Program

How big is the problem? 

In the same report from PwC, 57% of employees said money is the top source of stress in their life. And there’s no sign these elevated anxiety levels will be going down anytime soon. A recent study from Bank of America revealed that the current trend is workers feel worse and worse about their standing. BofA found that:

Only 42% of employees said their financial wellness was good or excellent, the lowest rate since 2010.

Why does it make business sense to invest in the financial wellness of your employees?

With all the negative effects of financial stress on workers, it’s not hard to draw a direct line between money worries and a workforce that isn’t experiencing the happiness, health and productivity it could be. Research published in 2023 by Morgan Stanley found 66% of workers in the US admitting that financial anxiety is impacting both their work and personal lives.  

The deleterious impact isn’t just to the individual employee, though. One study by Salary Finance found that poor worker financial wellness costs companies a total dollar amount equaling 11% to 14% of their annual payroll expenses.

A 2023 Transamerica Institute report found that 77% of workers see financial wellbeing resources as an important company benefit. In a labor market where only 28% of employers currently offer money empowerment tools, providing this kind of valuable guidance can be a powerful force in attracting in-demand workers.

Confirming the attractiveness of money wellness tools were findings released by BofA indicating that 81% of employers found that providing financial wellbeing resources helped them land a greater number of high-quality employees. A FinFit study of over 14,000 employees found an almost 19% increase in employee retention for companies that offered employees professional guidance on matters of personal finance.

There is also strong evidence to show that money coaching has a demonstrable positive effect for employees. A report from Employee Benefit News revealed that the number of employees reporting elevated levels of financial stress dropped from 52% to under 20% following participation in a financial wellness program.

With ample evidence of both the toxic impact of financial stress and the ability of financial empowerment programs to alleviate those anxieties, it’s never been more clear that now is the time for employers of all sizes to make a wise investment in getting workers the tools they need to enjoy a more peaceful relationship with their money.