Why you should prioritize financial wellness in the workplace

Employee benefits plans promote employees' physical and mental well-being through health, vision and dental insurance. After all, happy and healthy employees are more likely to deliver their best work and effectively collaborate with colleagues.

As part of this goal, making financial wellness part of your employee benefits plan could make sense. Improving financial wellness in the workplace further supports your employees and can even boost your organization's bottom line.

Why does financial wellness in the workplace matter?

Financial wellness can cover several areas. In the short term, financial wellness means a person can comfortably manage their bills and has resources for an unexpected expense, like a surprise medical bill or an emergency car repair. Financial wellness also considers whether a person feels confident about progressing toward their long-term goals, such as retirement and paying for a child's college expenses.

If employees are stressed about money, it distracts them from work and can create short- and long-term challenges. Financial problems can lead to mental health issues like anxiety, stress and depression. The stress from financial issues can even lead to physical problems like headaches, high blood pressure and a weakened immune system. A recent report found that 57% of employees point to finances as the top cause of stress in their lives. Additional studies have concluded that a person struggling financially is more than twice as likely to be in poor physical health versus someone who has no financial stress.

Employers who work to improve employees' financial wellness also support their physical and mental well-being. This can reduce employer healthcare spending, prevent missed workdays and increase employee productivity.

How do financial wellness programs work?

A workplace financial wellness program has two broad goals. First, it aims to improve employees' financial literacy so they can make better decisions with their money and feel more confident about reaching their goals. Second, it could provide additional resources and benefits for employees to make them more financially secure.

Employers can achieve these goals in many ways, including:

• Enrolling employees in online financial courses.
• Holding seminars and workshops with local experts on financial topics such as taxes, investing and college planning.
• Paying for one-on-one employee sessions with a financial planner.
• Giving employees access to budgeting and financial planning apps.

Employers with additional resources could support financial wellness in the workplace through benefits such as:

• A health savings account (HSA) or flexible savings account (FSA) for employees to save for future healthcare expenses.
• A 401(k) so employees can save for retirement with tax advantages and employer-matching funds.
• Student loan repayment assistance.
• Flexible access to wages so employees can get paid early for emergencies.
• Group life and disability insurance.

Given budget limitations, employers likely can't provide every part of a financial wellness program. Instead, they should focus on those that would most cost-effectively improve employee financial literacy and wellness.

How can you add financial wellness to your benefits plan?

If you want to add financial wellness to your benefits plan, consider what employees would find most helpful. Run a survey to gauge the most pressing financial topics and needs: budgeting, insurance, debt management, retirement planning, etc. That way, you can tailor the program to employee priorities.

You should also consider your budget for the program. Some benefits are low cost, like online courses, budgeting apps and an HSA for employee contributions. Others require more employer investment, like a 401(k) with matching contributions and student loan repayment.

Decide which benefits are your initial priority, and contact the relevant providers to launch them. For example, a benefits broker could help you set up an HSA or group disability and life insurance. If you want to launch workplace seminars, research and contact local advisors to see if any offer in-person education sessions.

Getting the most from your investment

After you launch your financial wellness program, track and promote employee usage. Employees need to participate in financial literacy programs to benefit. Consider offering incentives, like small prizes or bonuses, for employees who finish the courses.

Also, review the program yearly with surveys to see whether it still meets employee needs. As priorities change, your financial wellness offerings could use a refresher.

Remember, financial wellness is a long-term journey. You could set up a basic program now and then add to it as your budget evolves. Taking steps to improve financial wellness in the workplace shows employees you care about them beyond what they deliver during the day. That can help you all in the long run.

Your trusted partner for benefits plans

A competitive benefits package can help your company boost employee satisfaction and drive long-term success. At Optavise, we help employers and employees make better benefits choices, offering a full suite of voluntary benefits, benefits administration technology and advocacy services that enable you to get the most out of your program.