Financial wellness isn’t just a topic to be talked about. It’s an important topic that needs to be taught in the workplace to ensure that employees feel supported in and out of the office. Failing to do so can have huge consequences, including loss of profit and productivity.
Let’s discuss just how much financial wellness affects your business profits.
Supporting employees financially doesn’t just mean paying them what they’re worth. It means investing in their financial future through programs and coaching in the workplace. Here are three reasons why this is so important:
- Financially strained employees are more likely to look for a job elsewhere
Simply put, if you aren’t paying your employees enough to make a living, you will lose their commitment.
Today, among the 29% of employees are currently in the market for a new job, 65% cite money as their primary reason for looking. This is largely due to the fact that the cost of living has risen substantially, with the average monthly living expenses for a single person being $3,189.
Having a high turnover rate can affect your bottom line significantly. Bringing in new talent calls for recruiting and training, both of which can be costly. Failing to provide employees with adequate financial compensation and financial planning tools can quickly become a means to an end for your business.
- Financial stress leads to a decrease in mental health
When employees are healthy mentally, they are more likely to be productive in the office. On the other hand, when their mental health is being attacked by financial stressors it’s natural to lose focus at work.
According to Bankrate’s April 2022 Money and Mental Health report, roughly 40% of U.S. adults say money is negatively impacting their mental health. Given the strong link between financial wellness and mental health, employers should consider offering employees financial coaching along with their mental health benefits. The more resources available to teach financial wellness in the office, the better.
- Employees will work through sick days
Not providing employees with the resources they need to properly manage their money can lead to problems.
One being that they will work through illness or emergency events because they lack the funds to take unpaid sick days. This doesn’t just lead to a decrease in productivity from that employee. It also opens the door to significant costs, reduced productivity, and attendance if the employees’ sickness is contagious.
Teaching employees the importance of financial planning, especially for unforeseen events will benefit both them and the company.
It’s important that employers show they care about employee financial well-being by promoting benefit programs that help employees stretch their money further.
One sure way to help employees stretch their money and craft a financial plan that works for them is with AnytimePay. Essentially, this is a program allowing employees to instantly add funds from their next paycheck to a prepaid card with the click of a button.
Giving employees extra flexibility when it comes to their money will lead to increased job satisfaction in the long run.
How Edenred can help
Schedule a meeting today to see how Edenred can help you better support your employees’ financial wellness.