Attracting and retaining top talent in today’s tough job market is no easy feat. According to the Bureau of Labor Statistics, the job market remains relatively unchanged as we approach the midpoint of 2024. Nationally, the unemployment rate has held steady at 3.9%, while Orlando has maintained a low rate of 3%. The Orlando area unemployment rate has not exceeded 3.5% since February 2022.
Orlando employers are well aware of these statistics and are beefing up their offerings, such as increasing starting wages, but they may be missing out on a powerful tool: financial literacy and adding health benefits. During National Employee Wellness Month (a time when employers highlight ways to support employees’ physical or mental health), many may be surprised to learn how financial stress can impact employee health and performance. According to a 2024 SoFi at Work survey,
47% of employees say financial stress is negatively impacting their mental health, up 11% from the previous year’s survey, while 36% say financial stress is negatively impacting their physical health.
Stressed employees can be unproductive employees. They miss work or get burned out, leading to higher turnover and increased strain on remaining employees. It’s often not the fault of the stressed employee. The current post-COVID economy has created a high-pressure environment for today’s workers with unexpected layoffs, inflation, rising interest rates, and demands for remote work.
Employers can do more to help ease the financial stress for employees brought on by today’s unprecedented situation. For example, Fairwinds Credit Union encourages employees to achieve financial freedom: 88% of employees have saved at least $1,000 for emergencies, and over 57% say they are actively paying down debt.
Employee financial literacy and wellness programs are a worthwhile investment that will pay dividends in the form of increased productivity, improved retention, and an overall healthier work environment for everyone. According to the 2021 PwC Employee Financial Wellness Survey, 72% of employees are more attracted to companies that care about their financial wellness.
Offering a financial wellness program can strengthen your company’s position to recruit top talent.
Here are some practical tips to help you do just that: First, establish a supportive environment and culture where employees feel comfortable sharing their financial worries with a trained HR professional. Fortunately, since COVID, there has been less stigma around seeking mental health services. Remind employees of these services often.
Another best practice is to offer your organization’s products or services to employees for free or at a discount, encouraging internal adoption and adding value to employees.
Next, we recommend investing in financial literacy education for your employees. There are many online-based curricula available, and many industry associations and chambers of commerce offer group discounts for small business owners. Once the curriculum is available, encourage employee participation by establishing savings clubs or colleague forums where employees can learn from and encourage one another. For example, create a financial wellness challenge, much like a walking or fitness challenge.
Incentivize employees through recognition and monetary rewards when they achieve milestones as a result of their participation in financial literacy education. Celebrate employee achievements and encourage others through employee newsletters and other communications.
Finally, review your organization’s current financial benefits for employees. Is your 401(k) dollar matching program competitive? Does your sick leave program meet industry standards? Consider allowing employees to use sick leave to self-pay for health-related expenses such as doctor co-pays, prescriptions, elective procedures, and fitness trackers. This will reduce financial stress and add to your total compensation package. What about life and long-term disability insurance coverage? What about paid parental leave, phased return to work, and family-building benefits such as adoption and fertility assistance?
In addition to physical and mental health benefits, including financial literacy benefits can give employers a competitive edge. National Employee Wellness Month is the perfect time to educate yourself. We hope these tips inspire your employees to keep not only their minds and bodies healthy, but their wallets, too.
Lindsay Lewinter is executive vice president of human resources at Orlando-based Fairwinds Credit Union.
