Why employers would be wise to check in on their financial wellness culture
Employees who take control of their money bring less stress to the office with them are more engaged and productive.
As COVID-19 vaccinations increase and states ease restrictions, Americans are returning to the office by the millions. But that doesn’t mean everything will return to their pre-pandemic ways in the workplace. In fact, many things won’t—and that’s a good thing.
One of those positive wake-up calls is the employer’s role in helping employees achieve true financial wellness. As employers looked closely at how to improve benefits packages, HR decision-makers ranked financial wellness as the number-one benefit they’re looking to add in the next couple of years, according to 2021 SmartDollar Financial Wellness Benefits Study from Ramsey Solutions.
Related: We can do better: Making financial wellness a workplace imperative
Why? Employees who take control of their money bring less stress to the office with them are more engaged and productive.
True financial wellness is when employees . . .
- Have control over their day-to-day finances
- Have enough cushion to handle most financial emergencies
- Are out of debt and able to manage their expenses without the use of a credit card
- Are on track to meet retirement and savings goals
Now more than ever
In The State of Personal Finance 2021 Q1, a separate study from Ramsey Solutions, we get a clearer view and a better understanding of the need for employers to help their employees with their finances. In the study, Americans ranked personal finances and money as the number one thing causing them significant stress. In fact, 43% of Americans worry about their finances daily, and 34% lose sleep over them. Nearly half (47%) of Americans are always worried they’ll have an emergency they can’t afford. Millennials have the most concern here (64%), and they make up the majority of the workforce.
Given this data, it’s unreasonable for employers to expect their employees to come back to the office, smile and get back to work. They need help. More importantly, they need the right help. Unfortunately, some of the stuff out there being called “financial wellness” is really just junk. Many “financial wellness” benefits encourage bad money behaviors by selling loan products, funneling users into more dangerous debt habits. Employees need better than that.
Employees’ state of mind
The pandemic had an unimaginable impact on people’s lives. There was loss, stress and instability. However, the State of Personal Finance 2021 Study shows that, as recently as March 2021, 45% of Americans say they’ve often felt grateful, and 43% say they’ve often felt happiness. Though they may currently feel held back by their financial situation, eight in 10 Americans with debt do believe they can become debt free. Similarly, nearly eight out of 10 Americans (79%) are hopeful about their personal finances in the year ahead.
Employers. The ball is your court.
June is National Employee Wellness Month, and workers are returning to the office. There has never been a better time for companies to show their employees that they care about them and their families by offering real financial education to their benefits package. Teaching employees to budget, save for the future, and retire with confidence matches what people say they want most. There’s no better benefit to add in 2021 than financial wellness.
It can’t wait any longer.
Sara Kidwell is Vice President of SmartDollar, a financial wellness benefit from Ramsey Solutions.
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