In today’s economy, Americans are worried about their finances, and it spills over into every aspect of their lives, even their work. This financial stress not only effects personal wellbeing but it is causing a drain on productivity and engagement.
Employers are often viewed as a trusted source of financial information. Because of that trust and their captive access to employees, employers have a unique opportunity to provide the education, interventions and programs that can improve the financial well-being of the workforce, as well as get engagement and productivity back on track.
A recent survey found that 78% of American workers are living paycheck-to-paycheck. It’s no wonder so many workers say they’re stressed about finances.
But what does this mean for you, their employer?
Employees stressed about their finances are far more likely to be late to work, absent, sick or distracted and unable to work effectively. According to the Chicago Business Journal, 43% of employees who are distracted by finances spend three or more working hours a week during work hours thinking about financial matters or dealing with them. This equates to 150 hours per worker per year in lost productivity. That’s a bundle of lost money that employers will never recover.
These numbers are causing employers to take notice, and more and more are establishing financial wellness programs to help.
Employees generally need help in four areas: budgeting, debt elimination, saving, and retirement planning. A good financial wellness program will address these visible areas while also addressing the invisible problem – poor attitudes about money.
The goal of a financial wellness program is to change employees’ mindset and behavior regarding their finances. A change that can result in educating employees how to handle their finances and thus reduce their stress.
If you’ve decided to offer a financial wellness program to your employees, here are 5 critical steps to get you started and on your way…
Your ROI? With a good financial wellness program in place, you might:
It’s a win-win for you and your employees; the program may even pay for itself if you consider the productivity benefits to your company. After all, less stressed employees are happier and happier employees are more productive.
You probably already have different types of wellness plans in your company –smoking cessation, nutrition, fitness. Adding a financial wellness plan to the mix is a natural progression.
Creating an environment where employees feel empowered about their finances is a dialog; we’re happy to help! At our firm, we feel employee education starts with the plan sponsor. We’re here to provide resources that can help your employees confidently work toward their financial goals.
 Friedman, Zack. “78% of Workers Live Paycheck to Paycheck.” Forbes Magazine. Jan. 2019.
 Lane, Shannon. “Employees’ money worries drain employers’ bottom line.” Chicago Business Journal, April 15, 2019.
This article is for educational purposes only. The tax and legal references attached herein are designed to provide accurate and authoritative information with regard to the subject matter covered and are provided with the understanding that LoVasco Consulting Group is not engaged in rendering tax or legal services. If tax or legal advice is required, you should consult your accountant or attorney. LoVasco Consulting Group does not replace those advisors.
Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a registered broker dealer and Investment Advisor, member FINRA / SIPC. LoVasco Consulting Group is independently owned and operated.
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