We already know that employees place a high importance on their workplace benefits. In fact, more than 40% of employees said that they were more likely to stay at their current organization if their employer provided mental health benefits, and Chipotle saw a 3.5 increase in their retention rate for employees who took advantage of their education program.
The same is true financial education and financial wellbeing. In a joint study with Stanley Morgan, SHRM conducted interviews of thousands of workers who left or lost employment in 2021. They found that nearly 74% of respondents said their employer did not add new benefits or expand existing benefits to support employee mitigate stress during the pandemic. 2021 also saw record-high employee churn rates as Americans quit their jobs at greater rates than at any point in the last 20 years.
Especially with the uncertainty of the pandemic and economy, more Americans are looking to gain financial security for now and into the future. This presents employers with an opportunity to offer financial education and financial wellbeing benefits and create a vibrant and healthy workplace culture.
There’s a lot that goes into the subject of financial education and financial wellbeing. To look more closely at its various parts, we’ve broken financial education down into the three terms: financial literacy, financial capability, and financial wellbeing.
Employees carry a lot of stress around their finances. In fact, this APA report showed that among all generations from Baby Boomers to millennials, money was the leading cause of stress.
Financial wellbeing programs help to alleviate financial stress by taking a holistic approach and taking into account the various facets of finance and how it affects our lives. Wellbeing programs will provide financial literacy in order to increase financial capability, which allows individuals to plan, manage, and take control of their financial life. Financial wellbeing is all about empowering individuals to take control of their finances and reach their goals.
Aspects of financial wellbeing programs include:
With the financial knowledge, guidance, and resources available to your employees, they will have the peace of mind and confidence to take control of their finances, relieving them of a huge source of stress and strain.
The great thing about a financial wellbeing program is that it takes a multifaceted approach to financial wellbeing, allowing your employees to focus on the financial subjects that matter to them. A lot of these programs come with financial wellbeing coaching, planning and tracking features, educational and guidance videos, online resources, and more.
Benefits of a financial wellbeing program include: