Financial stress has plagued adults for as long as we know, and it’s only gotten worse since the pandemic. Credit scores, debt, loans, interest rates – it can be a lot for employees to juggle. As we move to a remote-dominated workforce, it’s more important than ever to help remote employees get the financial help they need.
Benefits of Financial Wellness Programs
Alleviates Employee Stress
According to the latest Stress in America Survey, money is still one of the top sources of stress among adults. So why is financial stress something employers should care about?
Well, it turns out financial stress doesn’t just negatively impact the personal lives of employers. Stress can manifest itself as health troubles and problems at work. It can drain the minds of employees, causing burnout, anxiety, exhaustion, and demotivation. Mitigating financial stress helps employees take better care of themselves and instills positive attitudes towards their role in the company.
Increases Workforce Productivity
Working remotely has many perks. However, one huge caveat with working from home is the increase in distractions.
Although these distractions come from various sources, employers need to decrease the number of distractions where they can. A research study on financial stress and the pandemic shows 40% of workers believe they would be more productive if they didn’t have to worry about their financial life. Financial planning assistance will improve focus and help remote employees reach their goals with confidence without having to worry about it during work hours.
Gives Employees More Without a Raise
Sometimes, getting more money isn’t the solution. Learning simple strategies like budgeting, investing, or bettering money management skills can be even more impactful than a higher salary. Take the time to understand your employees’ financial goals and worries, and provide them with tools and resources to assist them.
Whether it’s teaching them ways to reach credit score requirements for a home or giving them resources to invest their money, financial wellness programs can allow employees to reach their personal money milestones and enable them to make the most out of their paychecks. Which, in turn, will increase remote job satisfaction and boost company morale without having to give everyone a raise.
Boosts Employee Engagement and Retainment
Remote employees already struggle with engagement. Sitting alone with a coffee and a laptop is an isolating experience. It leaves remote workers vulnerable to distractions and creates a lack of loyalty. On top of that, poor financial health often causes a drop in work engagement.
Being worried, ashamed, or distracted by money can cause workers to not be fully there when handling tasks and dealing with company goals. Having a financial wellness program shows workers their employers care. Which increases satisfaction and loyalty to the company as well.
Consider providing resources for alternate work-from-home (WFH) options. For instance, many flexible office space providers now offer workplace solutions that cater to hybrid work. Monthly memberships like an All-Access Pass to a coworking space are designed for professionals who WFH but want the flexibility to access other workspace options to do concentrated work when they need a break from the home office.
What to Include in Your Financial Wellness Programs
So now that you know the benefits of a financial wellness program, how do you get started?
To choose the best financial program for your company, you must first listen to and assess the needs of your team. Gather information from your employees, determine your budget, and go from there.
There are many financial programs that you can implement, but the most successful programs include:
According to a SHRM study, 77% of working Americans find retirement to be the most important financial wellness benefit. This can be satisfied by supplying employees with retirement plans and planning assistance. You can even go the extra mile by providing contribution matching.
Giving your employees access to budgeting tools is a great way to help them visualize their debts and income. Listing out income and expenses can help employees better gauge their financial health and see areas in which they can save money. Providing financial literacy classes can help instill positive financial habits and improve employees’ ability to manage their finances.
Credit building workshops can be a great way to educate remote employees on what affects credit scores and how to improve theirs. Having a good credit score will improve your employee’s chances of achieving financial and life goals, such as meeting credit score requirements for loans or qualifying for lower interest rates and better financial benefits.
Combat Work From Home Costs
Employees that work from home often face high utility bills they aren’t used to paying. To help reduce costs of working from home, consider giving a work from home stipend to help pay for internet, utilities, and other necessary work from home needs. If you want to go the extra mile, consider renting a workplace for employees to help reduce costs while also increasing connectivity for remote workers who live in the same city.
Debt is often the primary source of financial stress. With the growing rates and greater demand for higher education, most employees come into the workplace with massive bills that need to be paid off. Having a program that reduces debt can ease the minds of your remote employees. Some ways to do this are by offering debt counseling or some sort of student loan repayment plan.
Financial Planning and Coaching
To help remote employees reach their financial aspirations, include financial planning or coaching in your program. If an employee is interested in relocating now that they’re remote, a coach can help in establishing the financials of this plan and determining how much house they can afford in their desired location. Having this guidance will help employees set achievable financial goals that can positively impact their quality of life.
Having a financial wellness program for your remote employees will not only improve their wellness, but also boost company morale, loyalty, and productivity. Employees are the backbone of every company. Helping them succeed will lead to greater success for the company.
If you’re looking for alternate work solutions for your remote or work-from-home employees, check out the workspace solutions we offer at Pacific Workplaces.