Including Financial Wellbeing in Your Wellness Programming
Our guest blog series, where we feature industry leaders and partners and give readers the opportunity to read expert advice from across the wellbeing and employee benefits industries, is back this week with a post from Gerry Hollis, VP of Sales & Strategy at Edukate. Edukate is a workplace financial wellness provider with a mission to provide every person access to expert financial guidance. Its solutions solve problems that ease the financial stressors most Americans experience each day. Edukate helps employers provide the best financial wellness benefits, thus helping employees manage their financial stress, increase their productivity, and live happier, healthier lives.
This week, Gerry shares about why, especially in the changing times, financial wellness should play a key role in your employee wellbeing programs.
The demographics of the American workforce are constantly changing. However, one variable that never changes is people’s relationship to money. Regardless of age, most employees have bills to pay, unexpected emergencies, and financial questions about their future.
Additionally, employees’ personal financial situations affect how they perform at work. In fact, 70% of HR professionals say financial issues impact employee performance.
Most employers agree that health and wellness programs are vital to improving employee well being. The question is, should they also be providing resources to empower employees to tackle financial issues and the associated stresses they bring?
Here are 3 reasons you should implement financial wellness into your overall well-being program:
- Decreased Productivity – Presenteeism and absenteeism are common side-effects of a financially-stressed workforce. A recent BAML Report found that the average employee spends around two hours each week at work dealing with their financial problems—some as much as five or more hours. The report also found that nearly six in ten employees felt that financial stress affects their health, which can lead to additional productivity losses.
- Employee Health Costs – In a 2015 APA Report, issues with money were reported as a top source of stress in the American workforce. Stress is a leading risk-indicator of poor health, commonly resulting in anxiety, depression, and high blood pressure. These health conditions cost both employers and employees in the form of higher premiums, medical costs, therapy, and more. Poor health and stress can also drive workers’ compensation expenses and disability costs.
- Human Capital – Productivity issues caused by financial problems often attract scrutiny or workplace discipline, including suspension and termination.
Financially stressed workers may also be easily persuaded to change jobs, fearing termination or seeking better opportunities. A 2017 PwC 2017 Survey found that 76% of employees surveyed said they would be attracted to another company that cared more about their financial well-being.
Employee turnover in both cases leads to higher recruiting and training costs.
Many employers have made significant progress in providing comprehensive health and wellness programs to their employees. But with financial stress as one of the drivers of a disengaged workforce, increased health-care costs, and employee turnover, employers should seriously consider including financial wellness benefits into their overall benefits strategy.
Employers who offer comprehensive benefits plans not only benefit from increased productivity and lower turnover rates, they can also build stronger long-term relationships with their employees. If you haven’t yet implemented financial wellness benefits, why not?
To learn more about how DHS Group’s HealthSpective program integrates financial wellbeing into its comprehensive employee benefits and wellbeing programming, contact us here.