5 Reasons Why Financial Well-Being In The Workplace Is Important
Financially literate individuals make better decisions than those without support from their employers.
When you feel financially secure, you’ll do better at work. You’ll feel like you are truly part of a team that cares more than just your paycheck.
A recent study showed that over 70% of Americans experienced stress about their finances.
In a rapidly changing workplace environment, finding an employer that offers a financial wellness program is not hard.
Employers hate turnover because they lose money training someone who doesn’t stay in the company. That’s why you need to find a company that cares about your financial health.
What is financial well-being?
Financial well-being happens when you have control over your financial resources and feel confident in managing your finances.
This can be achieved through various means, such as having a stable income, creating and sticking to a budget, investing in long-term savings, and avoiding excessive debt.
Financial well-being is not about being wealthy or having a lot of money; rather, it is about feeling secure and in control of your finances.
There are a few key indicators of financial well-being:
- Having enough money to cover your basic needs and live a comfortable life
- Having the ability to save for future goals and emergencies
- Being free from debt or having manageable levels of debt
- Feeling confident in your ability to make financial decisions
Reasons employees need a financial wellness program.
Decreased levels of stress = increased productivity.
We are always busy, and the busier we are, the more stressed we get.
But did you know that 90% of Americans feel stressed about money?
How can someone that lives in one of the wealthiest countries in the world feel stressed about money?
Part of the problem is that people lack financial planning skills. Without financial literacy, they normally make a decision based on feelings. And these impulse decisions don’t have great financial outcomes.
It is worth considering a company that offers a financial well-being program.
These programs help with education about the best retirement accounts and how much you’ll need for retirement based on your spending habits, and some even have financial planners available.
When you know someone in your corner is helping with your finances; you’ll feel more in control and less stressed.
In turn, decreased stress levels help you do better at work, and you get promoted faster when you do better at work. It’s a positive cycle that helps you reach financial freedom faster.
Financial planning reduces chronic health conditions.
When your financial worries run high, you are more likely to develop chronic health conditions such as diabetes and heart blood pressure.
If you live paycheck to paycheck, you are more likely to engage in bad habits such as overeating for comfort or overworking to make ends meet.
So having a company that offers financial wellbeing in the workplace is a lifesaver.
Most companies offer health benefits, but that is just not enough anymore.
The trust is that money and health are connected.
When you feel in control of your finances, your health gets better. Also, when your health is optimal, your performance at work improves. Money and health are two sides of the same coin.
Companies have started to realize that if they focus on financial literacy for their employees, they reduce turnover and employee loyalty increases.
There are many companies now that offer employee financial wellness programs. Ask about these programs in your next interview.
Financial wellness programs reduce sick time.
Financial wellness programs have been shown to reduce sick time among employees. These programs help employees manage their finances and provide them with resources to make informed financial decisions.
Financial wellness programs help employees reduce stress, leading to fewer sick days.
Financially literate people understand the basics of budgeting and also the importance of having an emergency fund.
When you have an emergency fund, you immediately increase your financial security.
Some examples of financial emergencies:
- Car breaks down
- Job loss
- A family member gets sick
When you work for a company that teaches you what to do in these situations, you improve your financial well-being. Employees feel empowered and less likely to take unnecessary time off.
Most employees quit when they feel unappreciated.
The second-biggest reason employees quit companies is their unhappiness at work.
Staying with a company that only sees you as a number is hard, so companies providing financial direction for their people are doing better at attracting talent.
Full-time employees need to feel appreciated to stay working for the same company for many years. When people have financial goals, they will be more inclined to stay in their current job to achieve them.
There’s nothing more frustrating than living paycheck to paycheck. But employers that offer financial wellness programs provide education that addresses employees’ financial challenges.
Companies without financial coaching are left behind.
If you have to choose between two companies, choose the one that offers an employee financial well-being program.
Financial coaching is one of the most important topics in a person’s life and career, and it’s something you can’t learn in school.
You’ll be saving yourself a lot of issues caused by financial stress when you have someone in your company that can guide you properly.
Everyone can give you health benefits, but those benefits only work when you’re sick. What about the rest of the time?
Employee wellbeing is not only medical. Companies that address financial well-being are the ones that will attract top talent.
The future workplace will have financial wellness programs.
In a competitive workplace environment, you want to have the most benefits. Companies are working hard to keep their employees. Which means you have the upper hand.
Finding a company that cares about you as a person is becoming easier. HR professionals understand the importance of employees’ financial wellbeing and push for these programs in their companies.
The knowledge you acquire from learning basic personal finance will last you a lifetime. Things like budgeting, saving for an emergency fund, and learning to invest for retirement have a big financial impact on your life.
You can always make more money, but the key is finding a workplace where you feel empowered and cared for. It’s the least you deserve in exchange for all your hard work.