In the United States alone, about 8 in 10 Americans are in debt. Today, many companies are investing in financial wellness programs to combat the stressors of their employees experiencing debt.

You might ask yourself, why do employees need financial wellness programs? This article will take a look at what they are and why they’re important. Read on to learn more about financial wellness programs and see how they encourage longevity with your employees today.

What Is a Financial Wellness Program?

You can find that there’s additional information in a financial wellness program instead of just investment and retirement information. Your employees will learn how to utilize their money in order to have a stable future at home and at work.

They’ll learn through training, courses, and the right tools on how to improve their financial success for the future. This can lead to overall job satisfaction and improved productivity.

1. Improves Employee Productivity

When your employees are able to receive budget counseling, debt reduction programs, and account options, they’re less likely to experience financial hardships and avoid distractions that debt can cause.

This will allow them to have more time on work instead of having to make phone calls for missed credit card payments, collection agency calls, and extra days off.

2. Employee Satisfaction

When your employee’s financial well-being is taken into account, their overall satisfaction with the company can approve. They’ll be able to engage more at work when they’re not as worried about consumer debt. Those who have to continually borrow money are more likely to have job unhappiness.

3. Decreased Turnover

You’re more likely to experience a decrease in employee turnover when you incorporate financial wellness programs. This is because employees will appreciate and recognize programs provided by employers that’ll help them manage their money.

4. Increased Savings

U.S. companies lose billions each year due to their employees facing financial stress. Instead, you can use a financial wellness program to place some of that money and save the rest.

5. Reduced Missed Work

When you have financial health programs for your employees, they’re less likely to miss work. When your employees have money issues, they might not have a car to get to work, or might not have enough money to eat.

6. Improves Employee Commitment

When you offer financial programs, it’ll teach them how they can enjoy their much-needed time off and go somewhere nice. Taking time off will have them come back to work fresher and more focused. Your employees will be more committed to their work since they see that you care about their overall well-being.

7. Reduces Stress

When workers are stressed, it’s harder for them to stay focused and perform their work. When you offer them financial programs such as student loan management, credit card debt, and other money-related problems, it’ll help them navigate any stress.

Financial Wellness Program Ideas

One wellness program is where you have 401(K) matching. This is where depending on the amount the employee puts into their 401K, you’ll match a certain percentage.

Insurance options are important as well. These can include accident, life, legal, pet, and disability insurance. Fertility and adoption insurance is a great option as well.

You can offer financial counseling sessions for your employees. They can learn different tips such as avoiding credit card debt, budgeting, and saving.

There’s also the option of financial aid guidance or workshops. You can even consider having fun programs with rewards in addition to these.

Other ideas include medical bill negotiation, stock options, relocation assistance, etc. This is because they consider different stressors that your employees might not realize can impact their financial health.

Budgeting Tips for Your Employees

Financial security is vital for your employees’ happiness. Teach your employees to save money and not be tempted when they receive a bonus or increase in their salary.

Teach them how it’s important to budget for groceries each week. Many employees tend to under budget and forget that many of their lunches might be out to eat. Encourage them to bring their lunch to work more often to save.

Explain to them the importance of an emergency fund since you never know what tomorrow brings. Whether their roof leaks, their child gets sick, or they need emergency surgery, having an emergency fund will come in handy.

Encourage them to get out of debt. In order to do this, teach them to only buy what they need until they pay their debt off.

One of the top budgeting strategies is the 50/30/20 rule. This is where 20% of your money goes toward debt repayment and savings. 30% of your money can go to your wants, and 50% goes to any needs and savings.

Another option is known as the zero-based budget. This is where you write down what your specific needs are for each week.

Long-Term Programs

You can consider student loan assistance to help your employees pay off their student debt. This is especially important if they’re in a tough financial situation.

Partner with different courses and training. This will let you master different skills and learn new knowledge.

Why Financial Wellness Programs Are Vital For Employees

Now that you’ve explored this guide on why financial wellness programs are vital for employees, you should be ready to set up some programs for your company. Take your time on setting up the right programs that you think will most benefit your employees.

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