How you can boost retention and attract key talent with Financial Wellness Benefits
While it is often an overlooked opportunity for improving one’s business, offering financial education is not only monumentally important, but it can prove to be incredibly beneficial for employers and employees alike. Still, it can be difficult to determine how to find the best employee benefits for small businesses. If you want to improve your employee retention and encourage a healthy workplace environment, hiring a financial educator may be precisely what you need to accomplish these goals.
The State of Financial Literacy
Financial literacy is a struggle for many individuals. Despite the thousands of books on how to live a financially savvy life, it can still be challenging to find a plan tailored to your unique needs and experiences. Without clear direction, it is easy to become lost on your way toward financial success.
According to Forbes Magazine, 78% of people in the United States consistently find themselves living paycheck to paycheck. Financial literacy and understanding have gotten so bad that 67% of Americans do not have enough money saved to cover a $400 emergency. While the current generation of K-12 students is required to take a financial education course, those who are actively in the workplace were not given the same opportunities.
While statistics like these can leave you feeling overwhelmed and discouraged, there is still hope. Employee financial education can be used to bridge the knowledge gap, empowering employees and employers alike in their endeavors to grow their understanding of financial wellness.
What Exactly Is Employee Financial Education?
Financial planning and education for employees can significantly improve your work environment, as well as the lives of everyone involved. Simply put, employee financial education is the process by which you not only inform your employees of their benefits, but offer them the opportunity to learn about healthy and sustainable personal financial management.
Many small business owners refer to their team as “being like a family”. Unfortunately, if your employees feel financially strapped and stretched beyond their means, it can result in the kind of tension that either prevents them from giving their work everything they can or sends them looking for jobs that they believe will help them find more financial freedom.
The root cause of this anxiety is not necessarily that they are not making enough to live off of, but rather that they do not know how to properly delegate and manage their money. This will not be fixed by changing jobs, but by a growing understanding of financial wellness.
How Can Financial Planning Benefit My Employees?
In one survey, 56% of employees admitted to letting financial worries consume at least three hours of their work week. When your employees are granted access to the financial education tools they need to improve their lives as a whole, they will most likely find these previous anxieties consuming far less of their time and energy.
Financial security is often linked to a general boost in personal confidence. Feeling secure in your earnings and money management can help employees feel a greater sense of peace and control over their circumstances, which can translate well to the energy and perspective they will bring to the workplace.
How Can Workplace Financial Literacy Benefit Employers?
Ideally, the workplace is meant to function as a haven from outside worries and woes, allowing employees to focus on their work without letting outside problems influence their productivity. Unfortunately, being plagued with financial fears is far too common and often permeates even the healthiest work environments.
When you offer financial education and planning to your employees, you are giving them the opportunity to assuage some of those worries by learning more about financial wellness. This will free up work time previously wasted on financial anxieties, allowing your employees to concentrate on accomplishing their various tasks.
This can not only increase productivity but also lead to a drastic change in your workplace culture. Your employees will have the tools they need to implement healthy financial living, which can increase career and general contentment. They will be less likely to believe that switching jobs would solve their problems because they will be able to see that their education and the systems that have emerged from it are improving their lives overall.
You may also find it easier to attract and retain top talent in your industry by offering financial education opportunities. Your employees are more likely to feel taken care of and valued when their employer acknowledges their concerns and then helps offer them solutions.
How You Can Support Employee Financial Health
If you want to offer your employees the opportunity to grow their financial knowledge but do not know where to start, 310 Wealth can help. Not only are we able to educate your employees, but we can also help you find and access affordable employee benefits, as well as other small business employee perks.
At 310 Wealth, we know the importance of having financial wellness programs for small businesses, and we want to make it our mission to provide our hardworking customers with the opportunity to improve their financial health as a whole.
FAQ’s
Q: What Exactly is Financial Education in the Workplace?
A: Financial education in the workplace is a powerful tool employers can use to strengthen and improve their businesses. It empowers your employees to grow their knowledge of general financial wellness, including how to manage their money and grow their wealth. This can be used to improve employee retention, as well as your general workplace culture.
Q: How Much Does It Cost to Offer This Kind of Benefit?
A: We include financial education and access to a CERTIFIED FINANCIAL PLANNER® as a part of our 401k/SIMPLE IRA services. However, if you would like employee financial education as a part of your benefit package without involving a qualified plan, reach out to us and we would be happy to discuss a flat fee pricing model.
Q: Do Employees Really Care About Financial Wellness Programs?
A: Yes! Financial knowledge and success often serve as the strongest base upon which a person’s general well-being can be built. When you offer financial education, your employees will feel seen, empowered, and valued.
Q: How Will I Know If It Is Making a Difference?
A: While it may take time to see the long-term benefits of investing in financial education, it can make a noticeable difference. To name a few examples, you may observe improved employee retention, a more joyful and focused workplace environment, and increased confidence in how your employees carry out their tasks.
Get More Information Today
Financial education is a long-term investment that can leave your company better off than ever before. Schedule a 15-minute call to share what your business is all about and see how financial education could fit into strengthening your company.
