Why Offer Financial Wellness in the Workplace?
For those companies that already offer financial wellness in the workplace, 57% agree that offering this benefit to employees has a positive effect on productivity.1 Over the past decade or so, employers have seen health and wellness programs benefit their organization with fewer absences and less demands on employer-sponsored health insurance. Now more employers are adding a new type of wellness program to their organization — financial wellness.
$70 Billion in 401(k) Loans
24% of employees say that personal financial issues are a distraction at work and over 1/3rd say they spend three or more hours each week thinking about or dealing with issues related to their personal finances.2 A shocking number of workers are even misusing their 401(K) with one in four resorting to taking out 401(k) loans each year to the tune of $70 billion, nationally. 3
Proper Guidance Helps Build a Stronger Workforce
When it comes to benefits and personal finance, employees need help with more than just their retirement plans. They are looking for recommendations on how to manage all areas of personal finance, from debt and cash flow management to getting the best insurance coverage. It has been proven that employees feel more confident and empowered when they are financially secure and in turn are more productive at work.
Financial Distress, A Problem for HR
Employees who have poor financial habits can’t meet their obligations or plan for the future. They become worried, stressed, sick, anxious and possibly depressed. In turn, employee morale and job productivity are reduced and the result is an increase in absenteeism, tardiness, lack of focus and commitment. Their financial distress affects their performance at work. Meanwhile health insurance costs increase as stress manifests as health problems. Other concerns include on the job irritability, fatigue and sleeplessness. These stressed-out employee behaviors then become major problems for HR.
Employees Welcome Financial Wellness
To alleviate these stresses, an increasing number of employers are implementing financial wellness programs that educate employees about the financial risks they face while providing tools to help manage those risks.4 Financial wellness can produce a state where employee stress is diminished and workplace performance improved.
Financial wellness providers report that employees are lining up for financial advice.5 This is for good reason. Unfortunately, not everyone knows how to handle their personal finances on their own, especially given the lack of education in schools and the finance and insurance industries lack of transparency, making understanding finance and risk management a very difficult task to handle. According to Financial Advisor magazine a recent survey has shown that 60% of employees want one-on-one financial planning assistance from their employer.
Financial Wellness programs come in many different forms and new companies are launching new services and products. Melius is a more proactive and holistic approach to improving financial health that encourages daily changes in spending and saving behavior while helping workers break the feast or famine cycle of living paycheck to paycheck.
RSVP for a demonstration today at www.getmelius.com
1Metlife’s 12th annual US Employee Benefits Trends Study
2 PricewaterhouseCoopers, “Employee Financial Wellness Survey,” 2014, page 11.
3 Bank of Nevada Leavitt Group present “Workplace Financial Wellness: The Critical Need for Employee Financial Wellness”
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