Financial wellness isn’t a new topic today. Employers are aware that improving the financial well-being of their workforce should be part of their overall benefits program. However, while we’re all aware of the importance of financial wellness to our employees, we’re probably not as certain about what our employees’ financial stress is actually costing us at the workplace.
Our employees are financially stressed because so many of them are living paycheck-to-paycheck. According to PwC’s current Employee Financial Wellness Survey, nearly half (47%) of employees report that they are stressed dealing with their financial situation, and 41% say that their stress level related to financial issues has increased over the last 12 months.
Take a look at these numbers from MetLife’s 17th annual U.S. Employee Benefit Trends Study 2019. Financial stress can lead to distraction at work, absenteeism and high turnover. These challenges have a significant impact on the employer’s bottom line.
What it’s costing employers is an eye-opener:
• 1 in 3 employees admit to being less productive at work because of their financial stress.
• For a company of 10,000 this can mean 1,922 hours and $28,830 in lost productivity every week.
• Overall, employers report $250 billion lost each year due to stressed employees at work.
In today’s modern workplace with a diverse, multigenerational workforce, benefits that help employees gain control of their financial life are becoming a must-have. Breaking the paycheck-to-paycheck cycle is achievable when employers help employees see the way through an array of voluntary benefits, including low interest installment loans and credit; student loan repayment benefit programs; automated savings programs that encourage employees to save money each month from their paycheck; bill payment programs that empower employees with debt paydown strategies and the ability to make recurring bill payments on-time each month through payroll deduction; and employee purchase programs that allow workers to purchase consumer products and services through payroll deduction when they are unable or prefer not to use cash or credit.
It’s costing employers too much annually. It’s time for change.