Know Financial Wellness Programs to Transform Employee Finances

Highlight: Get to know the top 7 benefits of offering your employees a financial wellness program. Read till the end to know how a financial wellness program can improve your business.

Facilitating programs related to financial wellness for employees has numerous benefits for them while also helping boost productivity and improving retention. In fact, 59% of employees report being satisfied with their employers when they receive access to some sort of financial wellness program, according to a Prudential report. 

Additionally, 7 out of 10 employees say that their loyalty towards their employers increased after getting access to financial wellness programs. So, it isn’t surprising that superior work-life for teams ultimately results in better bottom lines for enterprises. 

Read on to learn more about financial wellness programs for employees.

What is a Financial Wellness Program?

Financial wellness technically refers to a person’s improved financial health by managing and reducing financial stress. A PwC Employee Financial Wellness Survey reported that 63% of employees suffered from increased financial stress since the start of the pandemic. 

Bonuses, investment workshops, discounts on bills, etc. are some ingredients of a good financial wellness program. Here’s how programs for employee’s financial wellness benefits employers: 

• Increased Retention Rate

72% of employees report that they would leave their current employers if they find another employer provides a financial wellness program. A fairly reliable strategy to increase (or maintain) your retention rate is to make employees feel valued. 

A well-planned financial wellness program helps them feel valued by the company, which will help your employees be more loyal to you. 88% of employees have already initiated or have plans to start financial wellness programs in their companies. 

• Happier and Healthier Employees

42% of employees face distraction at work due to financial issues. With a financial wellness program, not only do you make them happier and healthier, but also save your enterprise from facing a significant amount of loss.

Employees spend 13 hours a month at work, on average, stressing over their financial problems. Those hours can cost employers up to a whopping $1,900 yearly loss per employee. 

On the other hand, programs related to financial wellness for employees that include, benefits for their physical well-being in the form of health insurance or subsidised regular medical checkups, directly contribute to elevating and maintaining their health. In other words, a financial wellness program not only keeps employees mentally stress-free but also truly healthy, by helping them to be debt-free.

• Improved Performance 

72% of millennials remain stressed due to financial problems at work. Gen Z and Gen X are not very far on this metric, at 62% and 68%, respectively. And stress is one of the most common factors that affects their performance and productivity. So, inculcating an employee financial program is a great way to lower their stress and improve performance.

At the same time, 51% of employees want to make their own financial decisions but look for someone to validate them. About 36% of employees actively look for elaborate financial advice. So, a financial wellness program doesn’t necessarily have to include direct financial support from employers. You can instead also give access to financial learning methods like workshops and seminars, which equips them with financial advice that can help them make a suitable financial plan. 

• Improved Job Satisfaction

More often than not, the rate of incentives the employers provide doesn’t really increase, keeping pace with market inflation. This lack of financial support from employers negatively impacts the employees due to which there may be 

• More leaves 
• Loss of productivity 
• Decline quality of work 

So, providing your employees with a financial wellness program represents your understanding and care for your employees’ financial issues. Moreover, companies that implemented a financial wellness program noticed 24% lesser unplanned absences by the employees. 

• Decreased Level of Stress 

Around 57% of employees avoid getting medical treatment for a disease due to their financial stress. This is an alarming issue. Along with the cost of living, the rise in insurance costs leads the employees to suffer from high levels of stress and insecurity. The result? Low employee retention rate, loss of productivity, quality and more.

Stress-free employees not only provide improved work for the company but also take an active part in its betterment. 60% of employees believing they will benefit from a financial wellness program. So, it a great way to help reduce employees’ stress, which can help ensure improved performance for the company.

• Better Retirement Plan

In today’s world, most employees try to keep investments or savings to ensure their retirement plan is strong enough. However, due to the increased cost of living, often they fail to make ends meet. 

49% of employees feel they will end up using their retirement savings even before retirement, which can cause stress and a myriad of other negative impacts. With a financial wellness program, you can help your employees secure their retirement plans and help them focus on their present more, instead of stressing over the future.

• Improved Employer-Employee Relationship

As an employer, you would love to maintain a good relationship with your employees. And this goes both ways. When there’s active assistance for employees to deal with financial stress, they actively reciprocate. Especially after the uncertainty caused by pandemic and layoffs, employees need enterprises to be with them while they deal with their financial stress. 

Reducing financial stress can be difficult, but you can achieve it through continuous efforts by improvising your financial wellness program.

How Can Fibe Help You Implement the Perfect Financial Wellness Program?

You will need a reputed and reliable organisation that can provide you with the correct financial wellness program. Fibe provides you with a special feature to implement your dream financial wellness program. 

With the Employer Tie-Up Program by Fibe, you can provide your employees with a salary advance of up to ₹5 lacs directly to their bank accounts. Furthermore, you can also finance them with their financial needs like school fees and medical emergencies. 

Fibe also offers financial seminars to boost financial learning among your employees. You can implement the perfect program for financial wellness in the workplace for your employees and sit back as you receive improved performance in return. That’s not all. Your employees can enjoy these benefits by meeting our simple salary criteria of ₹10,000 a month.