How Financial Wellness Benefits Can Boost Employee Productivity

Every business aims to achieve a highly productive workforce. Productive employees accomplish more work, which means higher profits for the company. 

However, several factors can slow down productivity in the workplace. One of the barriers that prevents employees from being productive and completing tasks on time is financial worry. Helping them confront this obstacle can benefit your company in the long run. 

It's crucial to highlight that employee well-being plays a vital role in driving productivity and profitability in the workplace. Giving them some financial relief can significantly impact a company's bottom line. 

If you wonder how that works, this article explores how adding financial wellness benefits to your compensation package can boost workplace productivity. We also discuss specific financial wellness benefits you can offer your employees. 

Eases Financial Stress

Financial stress can negatively affect an employee's well-being, affecting their job performance. Its symptoms include insomnia, mood swings, fatigue, and appetite changes. All of that will likely reduce motivation and productivity at work. 

A financial wellness program can empower workers to make more informed financial decisions. Employees who learn to manage their money better will encounter fewer financial problems. Instead of worrying about it, they can be more productive in the workplace. 

Reduces Absenteeism Levels

Instead of spending hours on their tasks, financially stressed employees will likely use their work hours to manage their finances. It's not surprising that money stress is one of the causes of absenteeism in the workplace.

When workers miss work due to financial problems, their workload also goes unfinished, which means failing to meet production goals. Addressing poor economic well-being can reduce absenteeism levels. 

Implementing a financial wellness program for the workforce can help them gain better control over their current and future finances. It can also guide them toward making meaningful changes and minimizing financial stress. As a result, employees will be more present and productive at work. 

Improves Focus at Work

Like other sources of stress, financial problems can prevent employees from getting adequate sleep. This can make them tired, making it more challenging to remain focused on their tasks. 

When personal financial stress distracts employees, they're less inclined to engage with their work. They may be physically present, but their minds can be elsewhere, worrying about their finances. As a result, their work may not get the required attention. 

Providing them with financial wellness resources can alleviate some of that stress. For instance, credit score monitoring or financial literacy training can help employees become more financially secure. So, instead of worrying, they can concentrate on the tasks. 

Financial Wellness Benefits You Should Offer

Now that you know how financial wellness can affect employee productivity, you should take this opportunity to assist them in improving their finances. A comprehensive financial wellness program can help the workforce gain stability and confidence in their financial health. 

But what financial wellness benefits should you provide to your employees? It depends on what your workforce needs. Understanding your employees' specific needs and challenges is an essential first step in developing an effective financial wellness program. 

Remember that giving employees more money doesn't always help. That's why financial wellness benefits shouldn't be about offering employees a pay raise. A financial wellness program must combine financial resources, tools, and education. 

The primary goal isn't to give employees perks. It’s to help them manage their debts, establish a budget, save money, and invest for the future. Here are some financial wellness benefits that may help your employees in the long term:

Student loan assistance

Student loan debt is a common burden among young job seekers, with many considering refinancing student loans to pay off debts at a lower interest rate. 

As an employer, you can help by offering student loan assistance. Monthly contributions toward an employee's student loan can lower their financial burden and build a desirable company culture. 

Retirement plans

Retirement plans are one of the most common financial wellness benefits employers offer. These plans enable employees to put aside a portion of their paycheck for retirement. 

In most instances, company retirement plans involve tax incentives, making them a valuable investment for employers and employees. Some programs may also have features that specifically target assisting the workforce in increasing their retirement savings. 

Workplace life insurance plans

These insurance plans provide employees with financial protection if unexpected circumstances happen, such as death in the family. Regardless of their compensation, the workforce can be financially confident by being offered limited coverage at minimal or no cost. 

Disability insurance

Accidents can happen at any time and prevent employees from performing their jobs. Disability insurance is an essential safety net that will provide workers with financial support for a predetermined period if they can't work due to disability. 

Education assistance

Adding education assistance to the financial wellness package can encourage employees to acquire further education, such as certifications or degrees related to their jobs. Offering financial aid for the employees' children's tuition is also good. 

Emergency savings fund

Another option to increase employee financial wellness is to help them establish a savings account for unforeseen expenses or emergencies. This will improve employees' confidence at work, particularly during economic instability. 

Conclusion

Helping employees handle their finances wasn't part of an employer's responsibility. However, considering the effects of financial stress on their physical and mental health, it only makes sense for organizations to support employees' economic well-being. 

Of course, there's no way you can solve all the problems that cause financial stress for the workforce. However, a successful financial wellness program is valuable and can substantially benefit employees.