Financial wellness training: A powerful move with a positive impact on employees

Today’s employees are really concerned about their financial health. And with good reason. According to a recent TalentLMS, Enrich, and Tapcheck study on financial awareness training, only 5% of employees have met their financial goals, while recession talks have made 7 in 10 employees more concerned about their financial wellness.

At the same time, an impressive “66% of millennials, 59% of Gen Z, and 47% of Gen X employees have experienced mental health struggles due to money-related issues.” Thus, it goes without saying that investing in ways to help your workforce overcome financial fears is more than essential in the modern workplace.

Let’s explore ways that can make a real difference in your employees’ financial wellness.

#1: Training helps employees feel more confident about finances

The obvious way to ease employees’ financial stress would be to upgrade their compensation plans. But the current financial crisis, with a potential recession on the way, makes salary upticks particularly hard.

Luckily, this isn’t the only way employers can help their people overcome their financial woes and maintain their financial wellness. Employee training can be a powerful move, with a positive impact on employees’ financial health.

But what kind of training exactly/?

• Financial wellness training: More than half of employees feel more secure after receiving financial wellness training, according to the above-mentioned TalentLMS study. Through proper training on financial wellness, employees can obtain valuable skills, like learning how to budget or invest for their future, but also discover the best ways to set themselves up for long-term financial success. But not just that. Your employees will build confidence concerning their financial situation, and this will help alleviate their worries and anxiety. A well-executed financial awareness training program offers all the knowledge, tools, and resources your people need to take control of their financial future and ease their stress.
• Well-being training: Apart from financial wellness training, it’s necessary that employers provide broader well-being training. Supporting your people’s wellness sets solid foundations for creating a nurturing work environment where employees will discover how to live a healthy and balanced life. This type of training will help employees on a more personal level, which will result in higher motivation and productivity at work. Those who know how to deal with stress, in general, have better chances of overcoming their financial worries. And they’re more likely to reach their fullest potential–both professionally and personally.

#2: Financial advice and programs support financial wellbeing

Providing the right knowledge, skills, and tools to manage money and money-related stress more effectively is key to maintaining happy, engaged, and productive people in your organization.

Financial mentorship and coaching that supports and empowers employees who may be struggling to manage their personal finances can deeply impact people’s lives. If combined with the right types of training mentioned above, it will help your teams develop a sense of higher financial security.

Another effective way to alleviate financial worries is to connect employees with external financial advisors who will help them plan for things like inflation, market declines, the cost of health care, and a retirement plan. Experts in the field are the best source of information on dealing with financial worries, They can share their insights with your people through webinars, presentations, or 1:1 sessions (online or on-site.)

Related: Financial wellness is a necessity for employers to offer: Here’s why

Finally, creating a retirement or investment plan within your company can help your employees plan more effectively for their long-term financial security. Knowing exactly which steps to follow, and where to seek guidance, will allow them to set their own, individualized goals, create a budget that serves their personal needs, and plan around their taxes.

#3: Remote or hybrid work models alleviate money worries

Investing in a more flexible work model might not seem relevant to financial wellness at first sight. But commuting can be a huge expense for some employees. And cutting daily transportation costs, along with coffee and lunch expenses, can have a big impact on personal finances.

But it goes beyond that. Flexible work models can help specific groups of people –  for example, new parents who need to work and can’t afford to pay for childcare or people who wish to relocate to a low-cost living area and work from home. Flexible work can lead to financial independence and overall happiness, as employees feel empowered while working where and how they know best.

Both remote and hybrid work models have proven to be efficient and effective ways of working that don’t hinder productivity and performance. Thus, it’s a great idea to offer your employees the opportunity to choose their preferred type of work. They will feel less anxious about commuting and spending money and time on transportation, and as a result, they will be more productive and focused on their work.

#4: Less money-related stress, more focus on well-being and ease

It’s hard to maintain a strong work-life balance and achieve financial health at the same time. This is where employers should consider implementing benefits that go beyond the specific job tasks at hand and offer employees much greater personal and financial freedom.

Having happier and more productive employees, and not an unmotivated, stressed, and worried workforce, will help your organization stay on top of the curve, enjoy higher retention rates, and witness an impressive return on investment. The results of implementing financial wellness incentives are a win-win for all parties involved.

Christina Gialleli is Director of People Ops at Epignosis.