Financial Wellness & Productivity: Debt-Related Benefits Support Employee Retention, Performance

62% of full-time workers say they’re more likely to stay at a job offering debt-related benefits according to a new Financial Health Network survey.

Employers looking to boost employee performance, satisfaction, and retention will be interested in data from a new Financial Health Network survey of full-time workers at mid- and large-size businesses with 500 or more employees who have credit card, medical, and personal loan debt.

Asked about their experiences with credit card, medical, and personal loan debt, what FHN calls unsecured debt, 62% of employees said they’re more likely to stay at a job offering useful debt-related benefits, rising to 69% for those with more than $25,000 in unsecured debt. Meanwhile, half who reported being stressed about debt spent an average of an hour per week dealing with debt issues while on the job.

The survey informed FHN’s new report, Helping Employees Manage Debt: Designing Debt-Related Benefits To Match Employee Needs and Preferences, and the three key findings:

1) Employee debt impacts wellbeing and job performance.

Nearly half of the full-time employees FHN surveyed struggled to pay their bills on time. One in three struggled with medical bills and half of that group reported cutting back on basic needs like food and clothing to pay them. And as mentioned, those struggling with debt spent time at work dealing with it.

2) Employees stressed about debt need more support and resources.

Employees with higher total debt and lower incomes and workers who identify as women are less likely to have access to debt-related benefits. Less than 40% of respondents said their employer offers such benefits. 60% of respondents who identified as women reported they were experiencing debt stress compared with 53% of employees who identify as men.

3) Employees are eager for debt-related benefits and solutions.

“Employers can increase employee satisfaction and retention by offering useful resources like financial coaching, debt consolidation, emergency grant funds, student loan support, and more.”

The vast majority of employees (68%) not only want these benefits but view them as important for employers to provide. They value “ease of access, clear explanation of benefits, confidentiality assurances” — and perhaps most importantly from our perspective — “availability of personalized help when considering whether to participate in debt-related financial wellness benefits.”

They value personal help, someone they can trust, say an expert guide to help them manage their debt, strengthen their credit, and build emergency savings, all of which can reduce their stress and increase their productivity. Sounds familiar.