How Businesses Benefit from Employee Financial Wellness Programs
In a time when some professionals can afford to be as selective about employers as employers are about applicants, company benefits are becoming a deciding factor in not only employee attainment, but also in retention.
Employers can be hesitant to incorporate additional perks and grudgingly absorb costs. However, it may be of interest to know that study after study has proven that thorough Employee Assistance Programs, in fact, help businesses to thrive by saving a substantial amount of money and increasing productivity.
The Impact of Financial Stress on Employees
In this economy, 49% of HR personnel acknowledge that workers are most concerned with staying financially afloat while meeting the responsibilities of debt and student loan repayment and managing savings for emergency and medical expenses as well as retirement. The World Health Organization has even gone to the extent of considering financial stress “the health epidemic of the 21st century,” claiming it costs businesses a collective $300 billion yearly. The International Foundation of Employee Benefit Plans sheds further light on the issue concluding that “75-90% of doctor visits are related to stress, with workers citing money issues as the primary source,” and points out that “financial stress leads to increased health care expenses, prescription costs and absenteeism due to health-related concerns.”
While employees struggle financially in their personal life, these worries are difficult to ignore during the hours of the workday resulting in 80% of employees reassigning 12-20 hours per month of employer-paid time to fix their situation, which according to Financial Literacy Partners amounts to a loss of $7,000 per employee per year.
Ultimately, individuals who are desperate for financial guidance lack focus, need mental health-related absences and feel dissatisfied with their job or employer despite sufficient compensation. As a direct response, businesses are looking for new resources to round out their Employee Assistance Programs (EAP).
A Cost-effective Solution
Management and Human Resources have come to recognize more and more the seriousness of the psychological noise their employees battle day-to-day as a growing problem both on a personal level and as it hinders an employee’s performance. Businesses leading the movement in EAP development have been wise to invest in connecting their employees with financial education resources and services, oftentimes at minimal cost while securing tens of thousands in savings.
While there’s strong evidence that providing these benefits to employees improves health, lessens absences, and sustains effective work performance, instituting such programs can also foster overall job satisfaction and company loyalty, as well as attract higher-caliber candidates for employment. With these results, it should come as no surprise that two-thirds of North American employers have already acquired partnerships with financial education providers and why so many more see it as a necessity for the prosperity of their company in the current and future market.
If you are in need of the benefits of an Employee Financial Wellness Program and would like more information on customizing an approach for your business, be sure to contact us to learn more about how we can partner together to help your employees and company thrive.
Contact Todd Christensen, Employee Financial Wellness Program Manager at 1-877-688-3328 ext. 906 or Send Todd an Email Here
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