Financial wellness benefits and competitive hiring market

The hiring market is hot right now, and demand for talent is pushing businesses into fierce competition. Employers are still feeling the effects of The Great Resignation, a movement which is continuing to drive employees to quit jobs in search of better benefits and higher salaries. Excessive turnover rates can lead to expensive hiring and training processes which, in turn, can reflect negatively on the financial performance of the business.

What are financial wellness benefits?

Before we get into the benefits, it’s important to understand the definition of financial wellness. Essentially, it’s a state where one is able to comfortably meet current and future financial obligations, a feeling of general economic security. As those in a position of authority, employers have a key role to play in supporting employees to achieve financial wellness, and benefits are the perfect channel to facilitate this.

While retirement and investment plans are common in today’s portfolio of benefits packages, financial wellness benefits are less universal. Instead, they exist as voluntary additions which employers can promote to create a happy, healthy workplace, and at the same time, attract more talent.

Benefits can range from services such as financial literacy resources, for example coaching, to loan services that are automatically repaid through payroll to help improve employee credit. These benefits can make a direct, positive impact on an employee’s personal finances, and offer valuable relief to situations which might be causing stress or concern.

Available throughout a person’s employment, financial wellness benefits can be a life raft during their time at work. Some programs also provide solutions for employees who leave jobs with payroll loans still unpaid, and help to find alternative methods of payment which work for employer and employee alike.

How does this feed into workforce retention?

Ever since the pandemic, there’s been a lot of corporate jargon around ‘wellbeing’ and prioritizing employee mental health. But are employers following through on their promises? A study from Bank of America found that only half (51%) of employees rate their financial wellness as good or excellent, despite 95% of employers claiming they feel a responsibility over it. We know that financial burdens can put a significant strain on overall mental health, yet many organizations are not doing enough to support this branch of wellness. This stress and mental toll is popularizing movements like the Great Resignation and ‘quiet quitting,’ which is why it’s more important than ever that employers ensure they are properly supporting employees.

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