Employees that bring their money worries to work tend to be less engaged and productive on the job, which eventually leads to more headaches and concerns for Human Resources.
The Society for Human Resource Management 2014 Survey of Financial Wellness and Education found that employees with personal finance issues have higher emotional and physical stress which may also lead to an increase in absenteeism and lower productivity. Personal finance problems in an employee’s life can lead to performance and health problems on the job.
This survey and other financial wellness studies provide proof that when employees learn and build the simple skills and behavioral changing habits they need to improve their personal finances, they also improve at work.
Impressive results show that a proactive financial wellness strategy in the workplace:
- Reduces absenteeism and sick time usage
- Increases retention and employee loyalty
- Minimizes 401(k) loan usage
- Reduces financial related stress and health issues among employees
- Improves workplace performance
85 percent of employers say employees participating in financial wellness programs showed more productivity at work. According to a March 2015 bankrate.com article, a financial wellness program can also combat low participation rates in 401(k) plans. 1
Without the resources to address financial emergencies and manage high debt loads, financially distressed workers may reduce or discontinue 401(k) contributions, or take 401(k) loans, depleting retirement savings and disturbing the balance of an employer’s 401(k) portfolio.2
Experts estimate that employees who delay retirement cost their employer $10,000-$50,000 per year for every year that they delay retirement beyond normal retirement age. This is due to higher health care costs and salaries for these employees vs. younger colleagues who would take their place. This estimate does not include intangible costs related to performance, productivity, and employee engagement. 3
A financial wellness program does not have to be complicated for HR or employees. Melius is a more proactive and holistic approach to improving financial well-being that encourages daily changes in spending and saving behavior while helping workers break the feast or famine cycle of living paycheck-to-paycheck.
Melius helps employees live more responsibly today, while planning wisely for tomorrow. Visit www.getmelius.com for more.
Footnotes
2 https://www.emergebenefit.com/assets/librarypdfs/Workplace-Financial-Wellness-White-Paper.pdf
3. http://www.financialfinesse.com/wp-content/uploads/2014/07/ROI-Case-Study-08012013.pdf
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