Financial wellness programs at the workplace have gained popularity over years. In a recent Bank of America survey, nearly three-quarters of 1,020 plan sponsors surveyed believe that financial wellness solutions will be standard elements of benefits packages in the future. It is also suggested that large companies will lead the way in implementing programs.
Data from benefits consulting firm, Aon Hewitt, supports this mentality. More than half of employers (55%) in their survey already offer a program to aid employees in at least one of the following areas beyond retirement resources:
- Debt management
- Saving to buy a home
The philosophy is that if employees face fewer financial worries and distractions, then employers will benefit from a focused, engaged, and productive workforce.
What does an employer get from offering a financial wellness program?
Employee financial wellness programs are the ways to help your employees learn to control their finances. Financial wellness is proven to reduce absenteeism and turnover rates while raising employee satisfaction. When implemented correctly, it’s possible for financial wellness programs to better a workplace.
The aforementioned Bank of America survey shows that plan sponsors believe utilizing financial wellness programs makes good business sense. Employees who use the programs become more satisfied (78%), loyal (70%), engaged (68%) and productive (57%).
Unfortunately, the number of participants in workplace financial wellness programs may not be high enough to impact the overall satisfaction and engagement of an organization.
Why isn’t your financial wellness program working?
Wellness programs can’t help your employees if they don’t know they are available. In Bank of America's survey, nearly one-third of employees in large companies said they didn't know if their employer offered financial wellness benefits. Participation rates are often low, too.
Another detriment to wellness programs is the specific content offered. They can’t be one-size fits all. Employers may not like to admit that their employees could be living paycheck to paycheck.
Budgeting, saving for a home, or thinking about investments - popular topics in wellness programs - may not be the discussion your employees are ready to have if they live paycheck to paycheck.
Bank of America reports that 75% of employees gave indications they aren't financially secure via measures. Examples of this include whether they can always pay their rent or mortgage. Gallup says that in 2016, 41% of Americans they survey worried about having enough to pay normal monthly bills. Further, 34% worried about not being able to pay their monthly housing obligations. Finally, 21% worried about not being able to make the minimum payment on their credit card.
Each of these missed payments would mean incurring late fees and perpetuating financial woes. If these worries are due to wages, versus money mismanagement, there might be more fitting topics for financial wellness programs.
What is another wellness benefit employers can offer that really resonates with employees?
DailyPay is one solution. Your employees can access their earned but unpaid income as often as they would like through DailyPay’s app. DailyPay does not disrupt your existing payroll process and we provide all of the funding and technology at no cost to your company.
This financial wellness benefit allows your employees to get money, in advance, so they can pay bills on time, avoid late fees, and meet financial goals. That might be the accompaniment to your wellness program that resonates with your employees.