10 Benefits to Having a Financial Wellness Program for Your Workforce
Businesses that sponsor financial wellness programs experience greater productivity and a more engaged workforce.
Today, the biggest source of employee stress in the United States is financial instability.
This can affect anyone, regardless of your income, age, gender, or race. According to the American Payroll Association, two-thirds of working-class Americans — that’s 90 million people — live paycheck-to-paycheck and do not even have $500 in savings. More than 25 million of them are middle class.
It’s also been reported that stress costs American business up to $300 billion annually, so it’s no surprise then that financial stress is, in fact, reducing workplace productivity and negatively impacting the economy.
The reality is stark. For someone who doesn’t have savings or low-cost credit to get them out of a financial bind, their only options are debt traps like payday loans, title loans, or pawn shops. And majority of the time, these products wind up becoming a never-ending downward spiral of more debt and headaches.
But guess what. It doesn’t have to be this way. If given the right tool, America’s workers can better prepare themselves for recurring expenses, financial emergencies, AND retirement. So, what is the “right tool”? And how can we replace financial stress in the workplace with peace of mind, without adding more debt?
The answer is, with an employment-based financial benefit that gives employees access to a portion of their already earned wages. Since most employers already invest in their workers’ healthcare and fitness, they can similarly use a financial wellness program — like Earned Wage Access — to provide employees a powerful path to financial autonomy. Businesses that do so can also tout innovation and social responsibility, while benefitting from greater productivity and a happier, more engaged workforce.
The 10 Benefits
- Increased employee satisfaction
- Reduction in workplace turnover
- Higher employee engagement
- Improved productivity
- Increased employee morale
- Fewer on-the-job errors and accidents
- Better employee attendance — less sick time and fewer missed days
- Reduced healthcare costs
- Better recruitment possibilities
- Greater profitability
By eliminating the need for workers to turn to alternative and often, predatory lenders to deal with immediate financial issues, employers reduce financial stress at work. In turn, employees become more engaged and productive, allowing greater retention and income. And finally, workers who have greater financial liquidity are more likely to contribute to the economy as a whole.
