You may not think much about the financial well-being of your employees. But you should.
A 2023 study by SecureSave found that employers are losing a staggering $4.7 billion a week due to decreased employee productivity due to financial anxiety and stress.So actually teeth As a small business owner, it is in your best interest to do everything you can to help your employees feel more financially secure.
According to Bank of America’s 2023 report, only 42% of employees rate their financial situation as good or excellent. This is the lowest level since 2010.
Additionally, 96% of employers feel somewhat or very responsible for the financial well-being of their employees. However, only 40% offer some kind of financial wellness program.
If you’re wondering whether it’s beneficial to spend some of your limited resources on a financial wellness program, the simple answer is “maybe.” It depends on the salary you pay and the employee’s general financial situation.
Advantages that some workers enjoy more than others
Financial wellness programs come in many forms. Some people tend to focus on investing for milestones such as retirement. Some focus on financial basics like budgeting and goal setting.
If you pay a good wage to the majority of your employees, they may be able to fully benefit from these programs. For example, let’s say you pay your employees an average annual salary of $80,000. Probably many people earning around this amount would have the ability to save anywhere from $5,000 to $10,000 a year for retirement or other goals. Therefore, you may be able to get some tips on how and where to invest.
On the other hand, let’s say the average employee at your company earns $35,000. Chances are, the typical person in that boat doesn’t have the disposable income to spend and invest towards future goals. Therefore, it may not be worth spending resources on a financial wellness program as it may not provide much benefit.
A potentially better way to spend your money
Financial wellness programs can have many benefits for employees. But before you pour money into it, think about what your employees need most.
Here are some ways to make better use of your resources:
- raise wages
- Propose matching with retirement plan
- provide an emergency savings account
- Offer a better health insurance plan or a more subsidized insurance plan
Additionally, if you’re not sure how much your employees will benefit from a financial wellness program, ask them. Send us an anonymous survey asking if you would like something along these lines. Additionally, if you’re not really interested in pursuing financial wellness, ask what kind of program they would like to pursue.
It’s good to be concerned about the financial well-being of your employees. But before committing to a wellness program, make sure it’s really a good use of your money and effort. You may decide it would be better to focus on other benefits and initiatives that have the potential to have a more positive impact on your staff as a whole.
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