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The financial wellbeing of your employees is something you may not think about all that often. But you should.
A 2023 survey by SecureSave found that employers lose an astounding $4.7 billion per week due to diminished employee productivity resulting from financial worries and stress. So it actually is in your best interest as a small business owner to do what you can to help your employees feel more financially secure.
Only 42% of employees rate their financial wellness as good or excellent, according to a 2023 report by Bank of America. That's the lowest level since 2010.
What's more, 96% of employers feel somewhat or extremely responsible for their employees’ financial wellness. Yet only 40% offer some type of financial wellness program.
If you're wondering whether it pays to spend some of your limited resources on a financial wellness program, the quick answer is "maybe." It depends on the salaries you pay and the general financial state of your employees.
A benefit some workers can enjoy more so than others
Financial wellness programs can take different forms. Some tend to focus on investing for milestones like retirement. Others can focus on financial basics like budgeting and goal-setting.
If you pay the majority of the people you employ a nice wage, then they may be able to benefit nicely from these programs. For example, let's say you pay your workers an average annual salary of $80,000. Perhaps many people earning somewhere in that vicinity have the ability to save $5,000 to $10,000 a year or so for retirement or other goals. So it might help them to have tips on how to invest and where to invest.
On the other hand, let's say the average worker at your company earns $35,000. Chances are, the typical person in that boat doesn't have disposable income to invest or put toward future goals. So spending your resources on financial wellness programs may not be worth it, because it may not offer much of a benefit.
A potentially better way to spend your money
Financial wellness programs could do a lot of good for your employees. But before you sink money into one, think about what your employees need the most.
Some better uses of your resources may be to:
- Raise wages
- Offer a retirement plan match
- Offer emergency savings accounts
- Offer a superior health insurance plan, or one that's more subsidized
Plus, if you're not sure how much your employees will benefit from financial wellness programs, just ask them. Send an anonymous survey asking them if they feel they'd want something along those lines. And to up the ante, ask what programs they'd prefer if financial wellness initiatives aren't really of interest.
It's a good thing to be concerned about your employees' financial well-being. But before you commit to a wellness program, make sure it's really a good use of your money and effort. You may decide that you're better off focusing on other benefits or initiatives that could have more of a positive impact on your staff on a whole.
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