Employers who care about holistically healthy workplaces have always cared about the employee benefits they provide. But one area that has become increasingly popular in recent years is financial wellness. The effects of financial stress on a person’s overall well-being are nothing new. It is no different for employees. That is why companies have begun offering benefit packages to attract and keep top talent. This approach, started after the Great Depression, has continued into the present day for obvious reasons and will remain important for businesses going forward. In this article, we will look at some of the financial wellness programs benefits for employees that can help them and why are they so important.
Top Financial Wellness Programs for Employees
Just like employees look into how healthy a workplace is, many are now also considering financial wellness options before finalizing their workplaces. Millennials make up a huge portion of the workforce and about 21% say they want assistance with future savings. This percentage tells you clear-cut just how critical financial wellness programs have become. So, here are the 4 best financial wellness programs for employees that you can look into:
- Retirement Plans
Retirement planning is crucial for just about anyone. It takes up a lot of headspace for an employee too. No one wants to work forever, no matter how much career-oriented. A retirement fund is the only way to have peace of mind when the day finally comes to pack up. The 401(k) has become one of the most popular employee retirement plan options for this reason. Often sponsored by employers, this one lets employees set aside a portion of their salary before tax deductions and this money usually grows tax-deferred until retirement.
However, the 401(k) plan also has some restrictions like employees cannot access employer contributions immediately. Withdrawing funds before retirement can also lead to penalties and taxes.
- Student Loan Repayments
Many young employees, especially those graduating from top universities across the world, come into the workforce with huge student loan debts on their shoulders. This is one of the biggest sources of financial stress for them. This takes a toll on a person’s efficiency at work, health, and also overall well-being. As an employer, offering a student loan repayment program for employees can be an intelligent move especially if you hire from top institutes. This can help you attract the top talents for your company.
Through this program, employers usually contribute a set amount each month towards the principal amount. The exact contribution amount can vary depending on factors like your workforce size and budget. Not only does this financial assistance help employees stay on track with their payments, but it also builds employee loyalty. This goes a long way in reducing their financial stress. Ultimately, you would be boosting a positive image of your company’s culture through such programs.
- Flexible Paydays
Most people without financial literacy struggle with one common thing. That is manning finances properly. This is especially true for employees dealing with debts and high living expenses. Traditional paydays can sometimes feel like a long wait, particularly for employees who are in urgent need of funds. As an employer, offering flexible paydays can be a huge blessing for such employees.
As an employer, it does not cost you anything extra. But by allowing your employees to choose when they get paid, you give them a lot of control over their financial conditions. Flexible paydays for employees often help them juggle costly loan repayments. This flexibility often helps them meet their immediate needs without worrying about debts. You can see the direct impact of this increase in the workplace as employees show greater productivity and work with less stress.
If your company is looking to undertake such personalized advice programs, EducationNest can help you design the perfect one. Being one of the top corporate training providers in India with numerous expert-led courses in their catalog, they can help you build a custom-made program just for your workplace.
- Personalized Financial Advice Programs
Personalized financial advice is an effective way to help them manage their finances and work towards long-term financial goals. While many employees know they need to save for retirement, they may need help in other areas. This could be paying off debts or budgeting effectively. A personalized financial advice program for employees can help them navigate these challenges through tailored guidance based on their unique financial situation. This becomes exceptionally useful for those who don’t have much financial literacy.
These programs should focus on practical advice to make smart financial decisions. Through this, employers can foster a more financially savvy and less stressed workforce. This automatically translates to better performance and higher retention rates.
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Why Employee Financial Wellness Programs Are Important
Supporting an employee’s financial well-being is not just good for them. It is also good ‘karma’ for the company. Even if you do not believe in karma, we have some solid points to convince you otherwise. These will surely make you believe it actually does more good for the company than harm. Here are some of the top benefits of an employee financial wellness program for both parties:
- Productivity
Financial stress is a major distraction. When employees are clouded by financial fears, it becomes extremely hard to focus on work. This is common for all people, not just employees. Financial wellness programs help remove the stressor. They allow employees to be more focused and productive. They are able to bring their best selves to work, instead of constantly worrying about their bills.
- Attract & Retain Talent
Employees today look for more than just a paycheck. They want a non-toxic work environment. They want supportive managers. They want benefits that support their overall well-being. This also includes their financial health. Employee financial aid can make your company stand out from others. They can help you attract top talent from the top institutions. Plus, employees who feel supported all around are much more likely to stick around. This can hugely impact your hiring and training costs.
- Lower Absenteeism
You will never know what an employee is struggling with in their personal lives. But financial stress can take a toll on their complete health – both mental and physical. This can lead to higher absenteeism rates. By addressing this issue, you can reduce stress-related absenteeism and reduce the hidden costs of absenteeism.
- Boosts Company Reputation
Boosting a company’s reputation among alumni is one of the top benefits of employee financial wellness plans. Companies that invest in this are often viewed as caring, responsible employers. This is looked upon as an ideal place to work with can improve your reputation both internally and externally. It can show potential employees and customers that you are a company that values its people. A strong reputation can attract better talent, customers, and even investors.
Conclusion
Company growth is a two-way street. You take care of your workforce and they take care of your company. You take care of their financial burden, they will give their all at work. They will feel their presence is valued at the office and will be much more focused and engaged. But before offering these programs, it is important to let them know the options available to them too. They must how to make the best use of each. Giving them the right tools and knowledge will set them up for success.
If you are looking for the right program to take care of your workforce’s financial well-being, EducationNest can help you set up financial literacy programs tailored for your employees. Being India’s top corporate training provider, they offer numerous expert-led courses on big data, soft skills, cybersecurity, and digital marketing, and also have customization options.
