What is financial wellness & how does it impact my company?
A growing number of employers across the U.S. are learning that financial wellness is a core pillar of total employee wellbeing and engagement. The Society for Human Resource Management (SHRM) found that more companies began to offer financial wellness programs in 2017 than in 2016. With the term “financial wellness” becoming more and more popular, the question comes to mind: What is financial wellness and how does it impact my company?
What is Financial Wellness?
Financial wellness has numerous definitions, all depending on context. Many believe it is related to retirement planning or investing. In the workplace, financial wellness can best be defined as an employer-sponsored program or benefit offering financial education with the purpose and intention to help reduce employees’ financial stress levels so they become financially confident.
How does Financial Wellness impact my company?
Believe it or not, your employees’ financial choices impact your company ’s success. In 2017, PWC released a special report Financial Stress and the Bottom Line. Kent Allison said,
“Financial stressors are not only negatively impacting employees, but are costing employers. Stressed employees are found to be less productive, take time off from work to deal with their finances, and are more likely to cite health issues caused by financial stress. These findings are concerning and potentially significant for companies looking to evaluate the return on investment of a financial wellness program.”*