Employee turnover can be a plague on a company. It’s no wonder since some estimates show it can cost a company $40,000 or more to replace a lost employee.
That includes lost productivity, recruiting costs, and training a new staff member.
Companies try to entice workers to stay through various methods, most commonly increased vacation time, flexible hours, or raises. Despite that, in 2019, nearly one in three workers had plans to leave their job in the next 12 months.1
Part of the problem may be financial stress. Financial stress is pervasive in the workforce. One study found 90% of Americans complained that money had an impact on their stress levels.2
A financially stressed employee is more than twice as likely to be seeking a new job.3 Not to mention that financial stress reduces productivity and job satisfaction.
Companies can lose up to $250 billion a year due to employee financial stress.2 Financial stress can affect a worker’s mental and physical health. It can lead to more work absences. It can increase the cost of healthcare for a company.
In other words, financial stress is not something a company can afford to ignore.
To ease some of this stress, and to help retain their workers, employers can offer a workplace financial wellness program.
These programs can help with budgeting, investing, saving, and overall money habits. Financial wellness programs are highly effective and well-appreciated by workers. In 2021, 81% of workers who were offered a workplace financial wellness program took advantage of it.4
Financial wellness programs have been steadily increasing in popularity for the last decade. More than half of large employers plan to expand their wellness programs in 2021.5
Employees are more stressed about money than ever, with 63% of workers saying their financial stress has increased since the start of the pandemic. Not surprising, considering less than half of them would be able to meet monthly expenses if they were out of work.4
Employers recognize this stress. 62% of employers now feel extremely responsible for their employees’ financial wellbeing. That is up from 13% in 2013.6
Recognizing the overwhelming financial stress workers are dealing with is a way to make them feel seen and appreciated. A staggering two-thirds of workers will leave for another company if they do not feel appreciated.7
Because of this, financial wellness programs are becoming a staple in many company benefits packages. The impact of financial health on overall wellbeing is no longer being ignored. And the impact a financial wellness program can have on all aspects of work-life is becoming more and more apparent.
8 in 10 employers say their financial wellness program has increased employee loyalty, in addition to improving productivity and creating more satisfied and engaged employees.6
Almost one in three workers who used their employer’s financial wellness program said it made them feel better about being an employee. An additional 19% said the program made them feel better about coming to work. The numbers don’t lie – that’s nearly a 50% increase in work happiness just from the use of an employer-sponsored financial wellness program.8
Keeping employees happy saves on the cost of recruiting and training new workers. It also increases productivity and improves company culture. High turnover at a company is associated with loss of morale for those left.9
Workplace financial wellness programs are an effective and low-cost way to improve employee satisfaction. Almost 80% of workers want to feel that their company is invested in their financial well-being.10
Ignoring their needs can lead to a serious impact on a company’s bottom line. Increased employee retention is one of the factors that leads to an impressive return on investment for employee financial wellness programs, which can reach up to 1500% ROI.
Integrating a financial wellness program is the best way to show employees that they matter to their company. A program like Enrich can do the heavy lifting for you. It uses interactive tools, educational courses, and gamification to support financial wellness.
1 - https://www.hrdive.com/news/nearly-one-third-of-employees-in-survey-plan-to-quit-in-next-12-months/556796/
2 - https://content.thriveglobal.com/wp-content/uploads/2020/02/Thriving-Wallet-Research-Insights-Report.pdf
3 - https://resources.salaryfinance.com/hubfs/Campaigns/USGuide19/Employers_Guide_to_Financial_Wellness_2019_Salary_Finance.pdf
4 - https://www.pwc.com/us/en/services/consulting/workforce-of-the-future/library/employee-financial-wellness-survey.html
5 - https://www.businessgrouphealth.org/en/resources/employer-sponsored-health-and-well-being-survey-executive-summary
6 - https://www.bofaml.com/content/dam/boamlimages/documents/articles/ID20_0857/2020WorkplaceBenefitReport.pdf
7 - https://www.forbes.com/sites/victorlipman/2017/04/15/66-of-employees-would-quit-if-they-feel-unappreciated/?sh=1223f0e26897
8 - https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1594&context=csd_research
9 - https://www.hrdconnect.com/2019/09/10/the-impact-of-high-staff-turnover-on-company-culture/
10 - https://www.forbes.com/sites/carolinecastrillon/2021/05/16/why-millions-of-employees-plan-to-switch-jobs-post-covid/?sh=463574fc11e7