Start Offering Financial Wellness Program To Your Employees

Published on: 5 January 2022

Modified on: 10 April 2023

Highlight: Get to know the top 7 reasons your employees need a financial wellness program. Read till the end why a financial wellness program can improve your business.

59% of employees report being satisfied with their employers when they receive access to some sort of financial wellness program from them, according to a Prudential report. 

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

What is a Financial Wellness Program?

Financial wellness technically refers to a person’s improved financial health due to the absence of any 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.

In this post, we will give you a comprehensive list of the top 7 reasons why your employees need a financial wellness program.  

• Increased Retention Rate

72% of employees report that they would leave their current employers if they find another employer providing them with a financial wellness program. A lack of financial wellness support from employers is one of the biggest reasons for this trend. 

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. Having a financial wellness program 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, financial wellness programs that include, say, health insurance or subsidised regular medical checkups, directly contribute to elevating and maintaining employee 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. 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. 

A financial wellness program doesn’t necessarily include direct financial support from employers. Giving access to financial learning methods like workshops and seminars can provide employees with the financial advice they are looking for. 

• Improved Job Satisfaction

Providing your employees with a financial wellness program represents your understanding and care for your employees’ financial issues. However, the rate of incentives provided by the employers doesn’t really increase, keeping pace with market inflation. 

Most employees face the need to take more leaves, loss of productivity, degraded quality of work, etc. due to the lack of financial support from employers in managing their monthly expenses. 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, degraded work, and more.

60% of employees believe they will benefit from a financial wellness program. Stress-free employees not only provide improved work for the company but also take an active part in its betterment. In return, they 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. With a financial wellness program, you can help your employees secure their retirement plans. A financial wellness program will also help the employees to focus on their today 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 almost two years of uncertainty, employees need enterprises to be by them while they deal with their financial stress. 

Reducing financial stress is not easy. But the goal can be achieved through continuous efforts by improvising your financial wellness program.

How can EarlySalary 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 lakhs directly to their bank accounts. Further, you can also finance them with their financial needs like school fees and medical emergencies. 

EarlySalary also offers financial seminars to boost up financial learnings among your employees. As long as a professional’s salary meets our minimum ₹10,000/month criteria, they’re eligible for our service. With EarlySalary, you can implement the perfect financial wellness program for your employees and sit back as you received improved performance in return.