The days of organisations benefiting from a straightforward retirement plan or all-inclusive health insurance have long passed. Millennials, particularly Gen Z, are demanding more extensive, inventive, and distinctive fringe benefits. Besides benefits like work-from-home alternatives and flexible paid time off policies, financial wellness programs are quickly gaining popularity. Here is a brief explanation of financial wellness programs.
Most employees state that they need assistance conserving money for a secure future. Employers now have started offering various financial wellness programs to cater to employees’ specific needs. Human resource is the most valuable resource. By lending access to financial awareness and wellness via such programs, an organisation not only amps up employee productivity and retention but also enhances the bottom line.
A financial wellness program must first educate the staff so that the employees can choose which financial wellness benefits are essential for them. They will be better able to manage their finances strategically as a result. Employees are just as concerned about their physical and mental well-being as their finances. And they believe that maintaining a balance between both aspects is crucial for a prosperous future.
But what exactly are the benefits of a financial wellness program? Let’s find out how a well-designed financial wellness program can help any organisation succeed in the procurement of its objectives:
Not only will the employees benefit from having a thorough and customised financial wellness program, but you as the company will also reap some benefits.
1. Enhanced staff productivity: A financial program must provide budget coaching, debt management plans and student loan assistance. A direct benefit of this would be improved employee output. Additionally, this will lessen people’s financial troubles. Employees who participate in financial wellness programs spend less time worrying about debt and other issues.
2. Enhanced Employee Satisfaction: When employees have access to financial programs, they report higher levels of professional satisfaction. Programs that enable employees to meet their personal and familial financial objectives, building an emergency fund, investing in an investment plan and other things are all part of it.
Employee engagement is higher when they are prepared for unforeseen financial problems. They don’t have to worry about their finances in the long run, which is why.
3. Increased employee retention: By implementing a financial wellness program, an organisation is more likely to provide benefits to its staff that will help them feel secure in their job and prospects. Inclusion of group insurance, vacation perks, low-interest home loans, retirement benefits, etc., helps organisations foster a long-term relationship, amiable work culture and employee loyalty, ultimately leading to greater retention and lesser attrition rates.
4. Strong Employee Recruitment: Job-hopping is a typical trend among workers today due to the high level of competition. To reduce this, employers must offer all the incentives and perks necessary to retain top talent.
Employees have a strong sense of stability because of benefits like health insurance and wellness programs included in the job application. HR managers must make aware prospective employees of the same for a successful recruitment plan and create a good brand image. The millennials feel appreciated in a company that gives preference to their needs and makes efforts for the same. Increasing the likelihood that someone will join your organisation.
5. Reduced absenteeism: The cost of living has significantly increased due to inflation rates. Employees struggle to make ends meet despite having well-paying jobs. Employees rarely have a carefully thought-out financial strategy for their expenditures, which is why they face month-end crunch or inability to face bigger expenses. Financial stress and worry lead to many physical and mental issues that may deprive the employees of their usual vigour, leading to increased absenteeism.
At other times, employees may choose to take on side occupations to have some extra cash. This may impact their ability to perform their primary duties, increasing the number of absentees in the company. This could be a serious issue for the business.
However, HR managers may help employees out of this scenario by teaching them about financial wellness. These lessons will enable employees to create an effective budget for themselves that will, in the long term, enable them to stay out of debt. Consequently, the likelihood of seeking another employment is reduced, leading to reduced absenteeism.
A well-designed financial wellness program can work wonders for organisational success. So make sure to invest time in one.
HR managers must implement a program that promotes financial wellness within the company. We’ve already discussed some potential advantages and benefits that could result from it. Such a program’s structure can take time and work to develop. Additionally, this can serve as a superb example for others of the company’s exceptional corporate culture and a positive attitude among the staff.
Having assisted over 4 million employees in sailing through their financial woes and other related management issues, Fibe is your one-stop solution and trusted financial wellness partner. If your organisation wants to set up a financial wellness initiative catering to employee well-being and finances, head to Fibe for a hassle-free experience.