Studies show that working Americans want their employers to help them manage their finances. Providing these services could increase employee retention and productivity.
Stepping into work can feel like a drag even on a good day. If your debt is growing faster than your paychecks can keep up, focusing on your daily tasks can feel impossible.
Many U.S. workers report being stressed over their financial situation. Is there anyway to help? A report titled, “Future of Money” found 77 percent of respondents feel it’s “important for employers to offer money management services.”
Employees want their workplace to help provide resources like…
- Retirement planning
- Guides to utilizing their 401(k)
- Help meeting saving goals
- Credit score repair
- Debt management
According to the financial service company Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA), the majority of young employees believe that it’s their employer’s responsibility to help them “improve and maintain financial wellness.” But why should they help?
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Financial stress impacts productivity
Stressed employees have higher rates of absenteeism – all of that anxiety leads to physical health problems and workers are more likely to use work hours to address financial issues. They also work slower and their overall performance is often worse than their more relaxed peers.
“People who have taken part in an employer financial wellness program can see a considerable difference, indicating that it truly makes sense for employers to redouble their activities on this front,” said Snezana Zlatar, head of financial wellness advice and innovation at TIAA.
Employee turnover rates increased over the last year in what some experts have dubbed the “Great Resignation.” There are over 10 million job openings in the U.S. and employers have been left scrambling for new hires despite the fact that 6 million Americans are currently unemployed.
Providing resources to help employees save money and plan for their retirement could not only keep them at work but make them more productive.
Resources and their barriers
TIAA says most Americans define financial wellness as feeling comfortable with their financial situation, having the means to care for their family, not worrying about money or debt, and feeling financially safe from unexpected life events.
Workers who utilize the wellness programs available to them are twice as likely to have a high financial wellness rating than others who were either not offered those services or those who chose not to use them.
The majority of employees who participate are also more confident about their means for retirement. But only about half of U.S. workers get resources for financial wellness from their employers.
Sixty-five percent of employees who are offered financial resources use them. What about the rest?
There are several things that stop employees from taking advantage of wellness programs. About a quarter of those who neglect these services are concerned about hidden fees or don’t want to disclose their financial status to their employer.
“It’s natural for employees to have questions about cost and confidentiality,” said Zlatar. “It simply means that employers need to assure employees that the guidance is offered purely in their best interest as part of the employer’s comprehensive financial wellness support.”
Find out: 10 Things Every Employee Should Know
Published by Debt.com, LLC