The Importance of Your Employees’ Financial Wellness
The aftermath of 2020 continues to unfold and expose pains and magnify deficiencies.
Every industry and company were struck by surprise. A few organizations, due to the nature of their business, fared well. Some even exploded with growth.
The majority did not.
However, what we all have in common is that we are all looking back and endeavoring to learn from the experiences so we might improve our processes, strategy, and mindset.
As we are clearing the rubble of 2020, one of the many things we’re learning about is related to the mental well-being of employees. An eMoney 2020 Financial Wellness Survey recently exposed just how much the COVID-19 pandemic increased financial stress.
73% of employees feel that their financial situation had a negative impact on their mental health in 2020.
Most of our employees are mentally stressed and that’s not good for them, or for the business.
It is important to understand that individuals who are experiencing serious stress may not be able to perform exactly as they have in the past.
Individuals that are anxious and worried typically take more breaks during work hours to do
things such as handle debt collectors; they’re often irritable or depressed, and consequently they’re having a difficult time concentrating. Additionally, poor mental health can easily develop into poor physical health.
Studies have shown that financial wellness benefits ranked high on employees’ list of priorities. Compensation was second and following were other benefits such as health care and paid time off.
Employees are in need of financial wellness support, and company leaders are looking for ways to meet those needs in order to ease the pressures.
The first step is to take a long, hard look at their entire benefits package.
Are you offering tools and resources to assist employees as they work through their financial stress and plan for their future? Employers should give some thought to what benefits really matter most to employees in this new work-from-home life.
In order to meet the evolving financial needs of these times, employers are seeking wider benefits packages above and beyond retirement planning. The key focus areas are:
- Basic budgeting
- Debt management
- Saving for college
- Health care savings
- Income replacement strategies
It is imperative that employees have a clear understanding of what it means to be financially well and how to effectively utilize the services and tools available to them.
To learn more about financial wellness and related corporate programs, or for a free initial consultation, contact Phil Westhoff at Stearns Financial at pwesthoff@stearns.financial or (513) 783-1156. Visit our website at www.stearns.financial.
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