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4 Ways to Improve Employee Morale with Financial Wellness

Did you know? Employees spend 25% of their workday worrying about their finances?

There is a war for talent right now, and employers need to be competitive to get the best candidates. High salaries alone may not cut it, which means you need to get creative with the benefits you’re offering. Mental health, and how to support your employees, has been a popular topic of discussion in the business world. In a recent study, more than 40% of U.S. consumers reported that they had difficulty paying a bill. Those with lower incomes were much more likely to struggle with finances, but 18% of respondents with incomes over $100,000 also reported that they struggled with expenses. This demonstrates that all employees struggle with financial stress from time to time, no matter their income level.

So how can you support your employees with their finances if you’re already paying competitive salaries? You can offer benefits that strengthen their financial literacy. There are services like FinFit, that all PrestigePEO clients have the option of enrolling in at no extra cost, which makes finances simple. Up to 58% of FinFit’s clients report that they see an improvement in employee retention after offering this benefit. Below are just some of the top benefits of providing a financial wellness program to your employees.

1. Financial wellness improves employee mental health

Stressed workers aren’t efficient workers. Finances are a significant contributor to employee stress, and a Bank of America survey found that 51% of employees are more worried about their finances now than they were during the height of the pandemic. When you’re struggling with your finances, you may not be able to afford activities that can relieve stress, like a vacation, a massage, or even having a dinner out with friends. Our country has gone through a mental health crisis over the past couple of years and the companies that retain employees are the ones that are offering ways to support their team members. Happier workers feel more satisfied with their jobs, and workers that are supported by their company feel valued and are more likely to stay.

In the not-too-distant past, mental health issues were a taboo topic, especially in the workplace. Now we not only acknowledge that mental health is important and struggling with it is common, but we also have employers that want to care for their team members with resources and tools.  It is an amazing change for the better, and one that benefits both employees and employers.

2. Financial wellness increases employee productivity

According to a recent report, employees spend 25% of their workday worrying about money. When an employee is stressed about their finances, this doesn’t just affect their personal life. Often, this affects all aspects of their life, including their work. Therefore, financial stress impacts your bottom line and contributes significantly to employee burnout. A stressed employee may have strained relationships with their colleagues, is less productive, and produces lower quality work. Providing your employees with a financial literacy tool can ease these worries and improve productivity. When team members feel less stressed about finances, they can focus on their work and productivity increases. 88% of FinFit’s clients reported an increase in productivity after offering this benefit.

3. Financial stress impacts overall health

If an employee is anxious about their finances, they are more likely to have compounding health problems. Anxiety, depression, and insomnia can all occur because of severe stress. These are also contributing factors that affect productivity, and an employee suffering from these symptoms will likely have poor quality work. Further, stress can cause or worsen conditions like heart disease, gastric distress, high blood pressure, diabetes, and more. When you lower stress, you lower the chances of all these conditions, and you have a healthier and happier employee.

4. How a financial wellness tool can solve these problems

Many people who are in dire financial need don’t know where to start to rectify their situation. A tool like FinFit takes the confusion out of the equation. When the employee signs up, which all Prestige clients can do via the FinFit website, the FinFit app, and the PrestigeGO app, they will be presented with a variety of easy-to-read tools. They can get an overview of their finances, and FinFit will provide the employee with savings goals. Each month FinFit will let the employee know how they did with their budgeting goals and where they can improve. It can even guide the employee through tax planning and help the employee decide how much money to withhold. If they have any further questions, FinFit offers free financial coaching. By offering a financial wellness tool to your employees, you provide them with an amazing opportunity to understand and plan their financial future. You are also letting them know that you care about their wellbeing, and they are not just another employee.

To support your staff and attract talented candidates, it is important to offer well-rounded and comprehensive benefits. Think about the whole picture, not just the work your team delivers. If your employees have great benefits, retirement options, and are confident about their financial future, they will be well prepared to be productive and hard-working. Providing a financial wellness tool to your employees is a simple and cost-effective way to provide an amazing resource. If you are a current client and you would like to learn more about FinFit, please contact your Benefits Specialist. If you are interested in joining Prestige and want to hear about our financial wellness tool and our other Fortune 500 benefits, contact us at any time.