How Will a Financial Wellness Benefit Help My Employees?

Over half of your employees worry about their personal finances daily, according to The 2022 SmartDollar Employee Benefits Study. That’s a whole lot of stressed-out employees, which creates a huge opportunity for employers like you to give them some relief.

That’s where financial wellness benefits come into play.

Financial wellness benefits help your employees where they’re hurting the most—their wallets. And it can be a boost to your business, too. How? When you help your employees feel more confident about their money situation, you’ll notice improved engagement, retention and productivity in your company.

That’s why we’re digging into the facts—so you can see just how much a financial wellness benefit can help your employees and your company.

 

What Is a Financial Wellness Benefit?

A financial wellness benefit can be any program that helps employees with money-related issues. That could include anything from sessions with a financial advisor and providing learning materials (books and online courses) to matching employee contributions toward retirement and student loan repayments.

But those options don’t get to the heart of your employees’ financial troubles—their money habits. Here at SmartDollar, we believe a financial wellness benefit should help employees build good money habits. That way they can finally take control of their money so it doesn’t control them.

Your employees don’t need a Band-Aid for their money problems. They need a plan they can follow that will lead to real progress and less money stress. That’s true financial wellness.

Why Should You Offer Employees a Financial Wellness Benefit?

We ask our money to do a lot for us—from budgeting and saving for college to investing and saving for vacations. It’s pretty intimidating trying to keep track of it all. And every day your employees struggle with their personal finances is another day they’re distracted during meetings or checking their bank accounts instead of their emails.

Check out these stats from The 2022 SmartDollar Employee Benefits Study:

• 36% of employees missed work due to a financial problem in their personal lives.
• 45% of employees say that in the last year, they’ve been distracted at work due to financial problems.
• 51% of employees said money stress has negatively affected their mental health.
• 46% of employees say that in the last year, their mental health has impacted their ability to do their job to the best of their ability.

This is how your employees are currently living. Not good for them or your business, right? You might even be in the same boat. But there is hope!

A financial wellness benefit can reduce employee financial stress when it provides a complete money plan that shows your employees how to take control of their money. SmartDollar’s money plan helps users build good money habits—like creating and sticking to a monthly budget, paying off of debt, saving for the future, and building lasting wealth.

Advantages of Financial Wellness Benefits for Employees

Employees with a financial wellness benefit were twice as likely to describe their personal finances as better off than last year than those without one, according to The 2022 SmartDollar Employee Benefits Study. Let’s go! That’s some great life-change happening right there.

But what exactly does that life-change look like in the workplace? The 2022 SmartDollar Employee Benefits Study says it looks like:

• 29% of employees saving for their retirement
• 25% of employees building up their emergency fund
• 24% of employees learning how much they need for retirement
• 27% of employees experiencing less stress about their personal finances (woo-hoo!)

These are educated employees making the right money decisions because of their employer-provided financial wellness benefit. They’re experiencing positive effects and seeing the advantages of taking control of their money—all thanks to HR and business leaders just like you.

How Will a Financial Wellness Benefit Help My Business?

If you feel like fringe benefits are a rotating door of new offerings, stop the madness by getting a proven financial wellness benefit. According to The 2021 SmartDollar Financial Wellness Benefits Study, 90% of employers who offer a financial wellness benefit say it’s one of the most impactful benefits to their employees.

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And when employees use a financial wellness benefit like SmartDollar, business leaders notice:

• Higher Productivity. Higher stress among employees results in lower productivity.¹ And according to The 2021 SmartDollar Financial Wellness Benefits Study, 88% of employers who offer financial wellness to their employees say their employees report less stress because of it.
• Increased Engagement. An engaged workforce is one that’s focused on their work and developing the company culture—not their money problems. Offering benefits that provide lifestyle change, especially financially, can help increase engagement at work.
• Lower Absenteeism. According to The 2022 SmartDollar Employee Benefits Study, over one-third of employees have missed work due to a financial problem. With a financial wellness benefit to help them take control of their money, your team is less likely to call out of work.
• Higher Retention. Hiring new talent is expensive—to the tune of one-half to two times an employee’s annual salary.² Don’t let your employees leave for $2 more per hour. Invest in their financial wellness to retain them.
• Improved Morale. Employees who have access to a financial wellness benefit are more likely to rate their morale as good or great (80%) than those without access to a financial wellness benefit (69%), according to The 2021 SmartDollar Financial Wellness Benefits Study.
• More Competitive Recruitment and Hiring. Over 90% of employers who offer a financial wellness benefit said its made their company more competitive when recruiting and hiring new talent.

Financial Wellness Benefits: An Essential Part of Your Employee Benefits Package

A healthy employee benefits package is always changing. HR leaders are constantly looking for new benefits to share with their employees to keep them around and attract new hires.

A financial wellness benefit gives your employees hope and excitement with their money that they’ve never felt before. It’ll turn your employees’ lives around—and you’ll find them to be more productive and engaged at work.

Your business wins when your employees win. So, a financial wellness benefit should be part of your employee benefits package. To learn more about how a financial wellness benefit can help your employees, visit SmartDollar.com.