Financial concerns are one of the largest causes of stress among employees, and the current pandemic has only exacerbated the need for benefits that help employees navigate the daily stressors in their lives. We’ve seen financial wellness programs gaining traction across a multitude of industries as employers realize the importance of easing their workers’ stress.
According to data from consulting firm, PwC, 59 percent of employees said finances cause the bulk of their stress and 35 precent of employees are distracted by their finances while at work. These significant financial hurdles have sparked a common trend amongst employers who are making a difference in their employees’ financial well-being through innovative benefits that help them navigate life during the COVID-19 pandemic and beyond.
“Employers are seeing in real-time how much of a safety net holistic financial wellness benefits are for their employees, particularly during challenging economic times. They are also seeing the role these benefits play in improving employee productivity and loyalty, which can impact employer’s bottom line.” — Vishal Jain, Head of Financial Wellness Strategy & Development at Prudential Financial
According to Metlife’s 2020 U.S. Employee Benefit Trends Study, there has been a continuous correlation between financial health and mental health. With the widespread financial burden caused by the COVID-19 pandemic, this relationship became more intense. More specifically, 52 percent of employees were concerned about their financial health post-pandemic. Before the pandemic, 43 percent of those who do not consider themselves financially healthy expressed their mental, social, and physical health is much lower than average.
With hopes to fill the gaps in financial literacy, several companies are providing advisory services as an employee benefit. These services are helping their employees manage their money and assist in planning for retirement post-pandemic.
According to the Society for Human Resource Management, employee benefits that tackle retirement savings can have a positive impact on an individual’s output and retention. As a result, these financial benefits can help combat the effects of financial stress on productivity and overall well-being in the workplace.
Information provided by Employee Benefit News.
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