Why The Financial Stability of Employees Matters
Companies are starting to show more compassion when it comes to helping employees be proactive on financial matters, especially long-term financial planning. After all, when employees are happy, organizations thrive.
According to Forbes, recent trends show more employers are focusing on the overall well-being of their employees with at least 56% of all employers integrating financial wellness programs into their companies, as of 2016.
Unfortunately, many have had to lessen pension programs, reduce 401(k) or remove financial perks altogether. Employees are feeling the burden of being the sole party responsible for retirement planning or ensuring a positive long-term healthy budget. As a result, both large corporations to small businesses are working hard to educate employees with many companies bringing in financial consultants to advise and teach.
After all, creating a positive work environment doesn’t stop with health and wellness and fitness. Employers don’t want to see their staff suffer, because of poor finances or financial ruin, especially in today’s economy. The trend in 2018 is extending beyond—it’s incorporating long-term financial planning and retirement savings.
If an employee is continually stressed, whether from overworking or finances, employees will be less productive and less focused, which in turn effects the bottom line for a company, no matter how big or small. In fact, a study in 2015 by the Social Market Foundation found that employees who are happy are up to 20% more productive than those who are not.
According to Forbes, half of full-time American workers spend a portion of their work about their work day worrying about finances, especially with many employers actively reducing pension benefits and contributions to 401(k) programs. This stress makes it hard for employees to make sound decisions. Job security and financial stability are just as important for job satisfaction as is whether a position uses one’s skills and abilities—and with the recent focus on promoting a positive and healthy worker, it truly is all-encompassing.
The reality is too, employers want productive and happy staff. It isn’t just about daily work productivity, but also the long-term. It’s in the best interest of companies to retain staff for the long-term, to reduce turnover and foster employees who are dedicated for the long-haul. Promoting an employees’ health and financial well-being are just two ways companies are diligently working to retain their employees, whether through education or active programs such as regular fitness incentives such as our ActiveSoul app, available on both iTunes and Google Play.
Employees currently shopping for new jobs are asking the critical questions about what an employer does to promote financial stability for its employees, as well as promote a healthy and positive work-environment. Now more than ever, employers need to focus on the overall well-being of its staff, from health management, to regular fitness, to financial stability. In turn, employers will see the benefits of happy and healthy works who stay focused and enjoy their work.
Forbes.com - “The Financial Well-Being of Employees,” Jul. 1, 2017.
Forbes.com - “Promoting Employee Happiness Benefits Everyone,” Dec. 13, 2017