Helping HR Professionals Maximize Financial Support with an EAP

What is Financial Wellness?

Financial wellness refers to the state of having control over your finances, being able to meet your current and future financial needs, and feeling secure about your financial future. It involves making informed and effective decisions with your financial resources, resulting in a sense of financial stability and freedom from financial stress. Simply put, it’s about having a healthy relationship with your money and feeling confident in your financial situation.

Why is a Financial Wellness Program Important?

A Bankrate survey conducted in March 2024 revealed that 47% of adults in the US said that money causes stress in their lives, having a negative impact on their mental health. As a result, financial wellness programs can offer countless advantages for both employees and organizations to manage that stress through support and resources. When employees have control over their finances, they worry less. This reduction in stress translates to better mental health and overall well-being, and often leads to a more focused and productive workforce.

See the Impact

Employee satisfaction sees a significant boost with financial wellness programs. When workers feel supported by their employer, they are more engaged and productive. It creates a sense of loyalty and appreciation. This, in turn, fosters a positive work environment where people are motivated and content. In a 2023 study conducted by PwC, 72% of employees who are not stressed about their finances say they would recommend their company as a great place to work, compared to only 59% of employees who are stressed about their finances.

Retention rates improve markedly with the implementation of these programs. Employees who feel valued are more likely to stay with the company. They appreciate the effort invested in their financial health. This leads to reduced turnover, saving the organization time and money on recruitment and training. A 2021 survey from The Society for Human Resource Management (SHRM) reports that companies with financial wellness programs experience a 29% increase in employee retention.

Lower stress means fewer health issues, which can result in lower healthcare costs for the company. A satisfied workforce is more collaborative and innovative. Retaining skilled employees maintains the company’s expertise and knowledge base. The Financial Health Network states that financially stressed employees are twice as likely to report poor overall health, leading to increased healthcare costs and absenteeism. Addressing financial wellness can mitigate these issues, benefiting both the employee and the organization.

10 Tips for a Successful Financial Wellness Program

Whether you’re introducing a financial wellness program for the first time, or boosting engagement with an existing one, implementing and promoting a program can be fairly straightforward, with the right approach. Consider these steps to get started:

1. Assess Employee Needs: Start by understanding what your employees need. Conduct surveys or focus groups to gather insights into their financial concerns and interests. This will help tailor the program to address specific issues.
2. Set Clear Goals: Define what you want to achieve with the financial wellness program. Whether it’s reducing financial stress, improving savings rates, or increasing retirement plan participation, having clear goals will guide your efforts.
3. Partner with Financial Experts: Collaborate with financial advisors or institutions to provide expert guidance, like an EAP. They can offer workshops, one-on-one coaching, and resources to help employees manage their finances better.
4. Offer Financial Education: Provide educational resources on topics like budgeting, saving, investing, and debt management. This can be done through workshops, webinars, or online courses – or an EAP. Make sure the content is accessible and easy to understand.
5. Provide Tools and Resources: Equip employees with tools to manage their finances. This could include budgeting apps, retirement calculators, and access to financial planning software. These tools can help employees take control of their financial situation.
6. Promote Retirement Planning: Encourage employees to participate in retirement plans by offering matching contributions or other incentives. Provide information on the benefits of early and consistent saving for retirement.
7. Support Debt Management: Offer resources to help employees manage and reduce their debt. This could include access to debt counseling services, consolidation options, or educational materials on managing credit.
8. Communicate Regularly: Keep employees informed about the financial wellness program and its benefits. Use newsletters, emails, and intranet updates to share success stories, tips, and upcoming events.
9. Measure and Adjust: Track the program’s effectiveness by measuring key metrics like employee participation, satisfaction, and financial stress levels. Use this data to make adjustments and improve the program over time.
10. Create a Supportive Culture: Foster a workplace culture that values financial wellness. Encourage open discussions about financial health and provide ongoing support to help employees achieve their financial goals.

Incorporating financial wellness into your benefits package demonstrates a commitment to your employees’ whole person care. It shows you understand and value their financial security as part of their overall health, which in turn, creates a culture of trust and support. Companies that prioritize financial wellness are seen as more attractive employers, which can enhance recruitment efforts and strengthen the organization’s reputation. Financial wellness programs are a benefit for both employees and employers. Employees get the benefit of support along their financial journey, while employers get the benefit of a more engaged and productive workforce. Reach out to Uprise Health’s EAP to see how our financial resources can help you create a financial wellness program for your organization.