Ever since the COVID-19 pandemic has “entered” our lives, things have changed drastically, in most aspects for the worse. Namely, subsequent cuts have exhausted many employees’ savings which caused more financial stress and burden.
Unfortunately, many people have lost their jobs and it seems like precisely because of this, a lot of people have started feeling insecure in terms of their finances. That’s precisely why something has to be done to boost people’s confidence when it comes to this.
One of the best options, for the time being, is a financial wellness program. Back in the day, it was a voluntary option, however, now it should be mandatory because this tool would surely change things for the better.
But what do we know about it? If you haven’t heard of it before, yet you want to gather more information, then just keep reading and you’ll find out everything!
Major Advantages Of Financial Wellness Programs
What Are Financial Wellness Programs?
First, let’s start with the basics. What do they represent? Employee financial wellness programs can be defined as programs that help employees properly manage their finances and decrease financial concerns.
Precisely these programs contribute to enhanced overall financial wellbeing for these people. The main goal of a financial wellness program is to educate workers. This can be executed in a variety of different ways, from coaching on particular topics to financial counseling, etc.
Why Implementation Of These Programs Is Essential?
They Enhance Employee Productivity
In this segment, we’ll briefly discuss how it affects employee productivity. If you want to get more detailed information concerning this, then simply click here and you’ll find out everything there is to know. According to many employers, these wellness programs have positively impacted the productivity of their workers.
Namely, besides retirement account options, these programs provide budget counseling, debt reduction programs, credit building help, student loan repayment support, and homeownership preparation.
This is definitely something that you do not get to see every day and precisely because of this, a vast majority of employees are way less financially stressed, they do not focus on their debts as much as they used to, which resulted in enhanced productivity and focus on their tasks and obligations at work.
They Offer Amazing Support
Unfortunately, many employees are under constant stress and are constantly trying to find a way to receive some type of support from their employers. And that’s precisely what these programs offer them.
Workers who are constantly worried about their financial issues no longer have to obsess over them, now that they can reap the benefits of these financial wellness programs.
Enhanced Employee Satisfaction
It is widely known that employees who have access to numerous tools that can help them accomplish their financial goals are generally happier and more satisfied. With the help of these programs, they can properly plan their vacation, develop an emergency fund, and pay off student loans, debts, and many other things.
A worker who is prepared for anything regarding their finances is going to be a lot more engaged at their work and won’t worry as much about their money-related things. On the other hand, workers who do not have this type of security are going to showcase much bigger dissatisfaction with their job.
They Enhance Health And Moderate Employee Stress
Now, this is something that is more than obvious, but sadly, it’s oftentimes overlooked. Many reports have shown that precisely finances are one of the biggest causes of stress globally. They are a much bigger concern than for instance, their own health, family duties, work obligations, etc.
It is widely known what stress can do to our bodies. For example, situational stress can cause benign things like sweaty palms and potentially increased heart rates. On the other hand, chronic stress is way more serious.
It can cause high blood pressure, increased fatigue, inability to focus on anything, irritability, headaches, and susceptibility to some major health conditions. Furthermore, those who are continuously under stress have a tendency to turn to numerous vices, such as drugs, alcohol, cigars, and overeating.
If you take all these facts into account, it comes as no surprise why many employers decide to start implementing financial wellness programs. They simply want to do everything they can to decrease or even completely eliminate financial stress.
Better Employee Longevity And Retention
By providing their workers with programs that contain budget counseling, debt reduction services, and credit building, employers are helping people who work for their more stable financial lives.
One of the “consequences” of it is an increase in homeownership among workers, which causes better longevity in the workplace. What’s interesting is the fact that several surveys have shown that employees who are continuously financially stressed will most likely search for another job where their salary is going to be much higher.
It’s all because a vast majority of them think that precisely the income is a solution to all their financial issues. And that’s a completely acceptable mindset because after all, a higher salary does offer more options and makes you a lot more financially flexible.
Fewer Payroll Advances
Enhanced personal finance behaviors among workers cause fewer payroll advances which are perfect for the human resources department. Managing payroll in some companies may not be too time-consuming, however, it can at times be very disheartening for employees.
These types of programs must encourage basic personal finance habits that will decrease the chances that the workers will require a payroll advance. Unfortunately, there are still a lot of employers out there who think that the latest rise in payroll advance services (that are frequently paid by the employees) is going to resolve this problem.
Sadly, that’s far from the truth. Many employers do not realize that the biggest problem is not the time of the month when employees receive their salaries, but the fact that their spending needs and bills are actually higher than their income.
There’s no denying that these financial wellness programs are more than beneficial for employees and that it would mean a lot (for employees) if all employers would start offering them to their workers.