It’s Time to Get Serious About Employee Financial Wellness
Aug 18, 2016
Lack of money management skills among employees may be a bigger issue than many employers realize. Poor employee financial health impacts productivity, and therefore, the company’s bottom line. To address this issue, employers need to start offering benefits that take a holistic approach to supporting their employees’ financial wellness.
The State of Employee Financial Health
Just looking at how employees are handling their finances indicates that many employees are in a precarious financial position. According to a Harris Poll on behalf of Purchasing Power conducted in March of this year of U.S. adults employed full-time:1
- 41 percent don’t have a planned monthly budget; and
- Of those who have a monthly budget, one out of four (26 percent) don’t put anything into savings each month.
Without a monthly budget, they most likely aren’t making sound financial decisions. Consequently, they report that they have trouble meeting monthly expenses, making minimum payments on credit cards, haven’t been able to make major purchases they need to make, and don’t have money saved for emergencies. All this leads to employee financial stress.
How It Impacts Employers
What should be disconcerting to employers though is how much time employees are spending at work – on the clock – dealing with their financial situation. A Harris Poll on behalf of Purchasing Power last December showed that 37 percent of employees deal with their finances at work, and of those, 34 percent spend 2-3 hours per week doing so. When they do, their productivity drops, and the employers’ bottom line is negatively affected.
What Employers Can Do
Employers should take steps toward building a more financially secure workforce through financial wellness education and benefits. Companies can provide online financial education resources; non-profit financial counseling services; and take advantage of value-add resources from their current benefit providers, such as the financial wellness platform Purchasing Power offers customers.
Other programs are available that help employees with their short-term financial needs including employee purchase programs, discount programs and short-term loans. Companies who provide these resources will not only help their employees, but they will also improve their own bottom line at the same time.
To learn more about the current state of employee financial health and what you can do about it, visit info.PurchasingPower.com/EHBC.