Employees want financial wellness (and it gives employers a competitive edge)

The workplace is undergoing a fundamental shift. Amid mounting employee stress due to economic uncertainty – and changing workplace norms – employee priorities are evolving. According to BrightPlan’s 2022 Wellness Barometer Survey, 78% of employees are prioritizing work-life balance, 38% are seeking greater mission and purpose, and 25% want to take a break from work. This shift in employee priorities, sometimes termed the Great Reckoning, is fueling the Great Resignation and has HR leaders looking for new ways to support their workforce.

Employers can gain a competitive edge by addressing employees’ biggest pain points. In the current market environment, this is rising inflation, market volatility, mounting debt, high mortgage rates and retirement planning, all of which is causing high levels of employee stress – specifically financial stress.

Financial wellness benefits rise to the top

The same survey found 72% of employees are stressed about their finances, up from 65% last year. With financial stress at an all-time high, it only makes sense that financial wellness benefits are now the most desired employee benefit, followed by mental health benefits and flexible time off. In fact, 54% of employees named financial wellness their number one most desired benefit, up from 29% in 2021. Here’s why:

• Financial stress can lead to more sick days: Poor financial health has been found to lower productivity and impact employee health. Depression, irritability and anxiety may accompany financial stress and ultimately impact employees’ working relationships and attitudes about their job. Financial stress can also lead to more sick days and reduced output. The survey shows that financially stressed employees lose on average 11.4 hours of productivity each week. However, not many employees have the resources to take charge of their finances and are looking for support from their employers.
• Employees trust their employers: Personal finance can be quite complex and overwhelming. With so much at stake, employees may be wary of trusting resources they find online. However, the majority do trust their employers to give them reliable financial information. Nearly nine in 10 employees expect their employers to offer financial support and resources. At the top of the list are tools for investing (88%), followed by financial education (87%), and access to a financial professional (84%).
• Employees want equal footing: Financial wellness benefits are an important part of fostering a culture of care and belonging in the workplace. Financial wellness benefits help level the playing field for all employee populations by empowering underrepresented groups, who are more likely to experience financial stress, to gain financial confidence and improve financial well-being for generations to come.

Financial literacy is in crisis

Employees not only want help, they need it. The current state of financial literacy is in crisis. Only 13% of workers answered at least four out of five financial literacy questions correctly. Financial literacy is the cornerstone of overall financial wellbeing. Offering your employees financial guidance and education empowers them to make smart financial decisions and gives them confidence to achieve their life goals.

Of all the ways financial stress affects workers, the greatest impact is on their mental and physical health — factors that directly affect the bottom line: 77% of employees who are stressed about their finances say it affects their physical health and 52% say it impacts their mental health. In addition, workers report that worsening financial health affects their engagement (47%) and productivity (45%). It’s estimated that U.S. employers lose over $4 billion per week in employee productivity and engagement due to financial stress.

Forward thinking employers are acknowledging the heightened need to address employee wellness in a more holistic manner. This includes their mental, physical, social and financial health. Intently listening to employees’ needs and responding with innovative benefits and support structures can better enable organizations to attract, engage, motivate and retain a happy and productive workforce.

Marthin De Beer is founder and CEO of BrightPlan.