With the cost of living on the rise, many employees are struggling to make ends meet. Approximately 35% of adults in the U.S. report they are “just getting by financially,” according to a 2022 survey by the National Endowment for Financial Education (NEFE). Financial stress is harmful not only to your employees’ well-being but also to your bottom line. Fortunately, there is a solution.
Financial wellness refers to the ability to meet financial obligations, including normal day-to-day expenses and potential emergencies. It’s an essential component of overall employee well-being and can have a significant impact on productivity and engagement.
To help employees everywhere achieve financial wellness, eBen recently partnered with Origin, an all-in-one money management platform that provides financial wellness tools and resources, including real-time expense tracking, budgeting, DIY tax filing, one-on- one financial planning, and more.
Key Components of Financial Wellness
Financial wellness is seen as being in a financially secure state, both in the short term and long term. Several elements comprise financial wellness, including control over your finances, the ability to survive financial shocks, and being on course to achieve your financial goals.
Some aspects of employee financial wellness include:
Personalized Budgeting
Having a complete picture of your finances can help you reach financial wellness. This includes knowing where every dollar is going through careful tracking of money going in and out. Employees should understand how to create and stick to a budget to pay their regular expenses, save for large purchases, and prepare an emergency fund.
Smart Investments
Investing is the foundation of financial wellness as it allows for long-term financial stability and wealth building. This includes saving for retirement and increasing financial security for the future, including for future generations. Investing may also involve monitoring individual stock and portfolio performance.
Healthy Money Habits
Developing healthy money habits and financial fluency can aid your ability to pay down debt, build savings, and even file taxes. By adopting mindful spending, regular saving, and responsible borrowing, you can reduce financial stress and realize your financial goals sooner.
Future Financial Planning
Financial wellness also means planning for future events, such as retirement and other future events. This also includes estate planning management tasks, such as the creation of trusts, wills, and other legal instruments that could help your family properly manage and distribute your property and assets after you’re gone.
Financial Wellness Support
for Employees
Financial wellness can have a powerful and immediate impact on employees. With access to a comprehensive financial planning platform, employees can enjoy the following benefits:
- Reduced Stress: Achieving financial wellness through healthy habits can reduce stress on team members. With less stress in their lives, employees are more likely to be motivated and productive in the workplace.
- Lower Absenteeism: Employees who struggle with money issues often have to take time off work to handle their affairs. Financial wellness can help lower absenteeism rates and minimize employer losses in the form of lost productivity.
- Increased Engagement: On average, workers spend 3 hours a week at work worrying about their finances. Helping employees feel financially prepared to take on life events means they are less likely to be distracted at work, leading to greater engagement and higher productivity levels.
- Lower Turnover Rates: Financially stressed employees are 2.2x more likely to leave an organization. It is often more cost-effective to care for current talent than to find and train new hires. By helping employees achieve financial wellness, employers can help reduce turnover rates.
- Higher Morale: Paying off debt, saving money, and preparing for retirement can help employees feel confident about their financial future. Promoting financial wellness in the workplace often results in higher employee morale.
Speak with eBen About
Financial Wellness
eBen’s partnership with Origin puts employers in the ideal position to help their workforce track financial milestones, gain expert advice, reach goals, and manage their money with ease. Speak with an expert to learn more.
