Studies have shown that most employees are stressed-out about their finances. According to HR Executive, 69% of employees are stressed-out because of their finances, with 72% worrying about their personal finances at work.
If workers are troubled about their finances at work, their focus and performance can go down. If the well-being, productivity and performance of employees suffer, so does the sales of the organization.
Employers have been addressing this issue by implementing financial wellness programs. In fact, according to the Bank of America, companies that have been offering financial wellness programs doubled since 2015.
That’s a huge leap in just 4 years. Perks for financial security has long existed but is becoming even more prevalent now because of the financial crisis that is happening among the employees.
The purchasing power of an employee’s income is not the same as it used to be. In fact, over the years, purchasing power decreased. While tax rates remained the same for 9 years, inflation deteriorated the value of household income by 24% between the years 2006-2014.
One of the main culprits for why the value of purchasing power eroded is the rising costs of health coverage. According to the Federal Reserve, nearly half of U.S. families can’t afford a $400 emergency expense.
Financial stress has become so rampant in the workplace that according to Robert Stewart, HR administrator for Brigham Young University of Idaho, “for many employees, financial stress isn’t just challenging, it’s the number one stressor in their life.”
According to PBS, even two-income families are finding it hard to make ends meet. This is how dire the financial situation of most employees are.
As an employer, you would want to provide an ideal place where employees would want to work. It’s where they can be provided with perks for financial security. These perks can be in the form of:
With employee benefits that assist with financial security, employees can feel less burdened with overwhelming financial problems that is ruining or that could ruin their lives.
As a result, employees can feel that they can trust their employers with more than just their stable paycheck but also with their well-being and secured future. It can create a good relationship between the employer and the employees.
Companies are having fierce competitions when it comes to financial benefits. If you look at the employee benefits being offered by the top companies, you’ll notice that they are very generous with the benefits that they offer.
This is because having excellent employee benefits attracts talented workers and it also increases employee retention. If you offer employee benefits for financial security, your organization can experience better employee retention and you’ll also have higher chances of attracting and acquiring valuable talents.
According to Winston Benefits, employee benefits can also improve employee engagement, productivity, performance, happiness and motivation. With the need of financial wellness and security being addressed, stress from financial problems can be lessened.
If employees are more engaged, happier, healthier and have a better overall well-being, their productivity and performance will also transform. A lot of research has been done to know the connection between employee engagement and employee benefits.
Here are but some of them:
When employees are more focused, their good performance extends to the customers. According to Aberdeen, companies that have an engaged workforce experience 233% greater customer loyalty and their revenue also increased by 26%.
To give you an example, the Hertz corporation focuses a lot on financial security for their employees. Here are some of what comprises the Hertz employee benefits package:
One of the top companies in the world also offer some of the best benefits. This company is Deloitte. Perhaps the reason for this is Erica Volini, Deloitte U.S. human capital leader. Deloitte employee benefits include:
As you can see, both companies address a lot of issues concerning financial wellness and security through their employee benefits. Looking through what other companies offer can give you an idea on how you can be able to improve the benefits that you offer.
With employee benefits, you hit two birds with one stone; you improve the life of employees as well as the life of your company. As what Greg Harris, CEO and president of Quantum Workplace said, “engaging the hearts, minds and hands of talent is the most sustainable source of competitive advantage.”