Financial Wellness Is Not Just an Employee Perk

It’s alarming how the recent global rise in costs caused a downturn in employees' financial wellness. A YouGov survey reveals a significant drop, from 61% in 2022 to 48% in 2023, in workers comfortably managing bills and credit commitments.¹ 

Adding to that is solid research drawing a stark connection between financial hardship and deteriorating mental health.² That’s where personalized financial wellness education takes on a new priority – it's no longer just a perk for employees.

This article explores how equipping employees with financial education fosters a thriving, productive workplace environment and ultimately strengthens the business's overall health and success.

Financial Empowerment: A Journey That Doesn't Start in the Classroom

Much of the working population today did not benefit from financial education in school, leaving them financially disempowered in adulthood. This reality transcribes into two critical concerns that confront businesses. 

First, a low understanding of the concept of interest increases vulnerability among credit users, magnifying the risk of unmanageable debt. Second, financial literacy tends to grow with income, but simply increasing paychecks is not sustainable, especially considering the escalating cost of living globally.³ 

These issues underscore the pressing need for employers to facilitate comprehensive financial wellness education for their employees.

But don't worry, there's a light at the end of the tunnel – Enrich’s study, which spanned 12 months, brought encouraging results to the forefront. Employees who availed of financial coaching demonstrated significant improvements, including:

• An average credit score increase of 25.51 points within just 15 months.
• An average savings boost of $1,657 after participating in financial education.
• There was a 27% surge in the number of users who could establish a crucial 3-6 month emergency savings fund.
• Employees were less stressed about finances.

Financial wellness causes a domino effect that benefits even a company's bottom line. Part of calculating the ROI for financial education starts with acknowledging employees' elevated capacity to focus on their roles, free from financial stress. 

With increased concentration and productivity, businesses can expect to flourish. 

Companies housing financially literate employees also become more attractive to high-caliber job candidates. A strong reputation for prioritizing financial wellness accompanies a perceived value, something that a mere salary increase can't compete with. 

That is why investing in financial education can position a company as an influential leader capable of engaging and retaining top professionals in the industry.

Personalized Financial Wellness Is More Than Just Webinars

Financial wellness spans from basic budgeting and debt management to retirement planning and more. This means your financial education program needs to be engaging and approachable, encouraging each user to actively participate in their financial learning journey. 

Rather than just launching financial wellness webinars, the essence of positive financial education lies in integrating this concept throughout your entire business operation, too. By doing so, employers can consistently reinforce employees' financial literacy with an engaging and localized financial education program. 

Customization Beyond a One-Size-Fits-All Solution

Every business has unique goals, and every workforce has unique needs. Providing customized financial tools, like articles and effective calls to action, can better serve these individual objectives. This includes promoting the organization's own employee initiatives on the financial wellness platform.

Guided and Supported Implementation

Compared to being handed a tool without instructions, the implementation process ensures that your business receives hands-on assistance. This ongoing support extends to executing all integrations, marketing strategies, and broader initiatives.

Making It Work with The Tools You Already Use 

The platform must offer the flexibility to integrate with various elements of your business. Whether it's tying in with your rewards program or employee benefits, the goal should be creating a seamless merger between your company's operations and the financial wellness program. 

Just note that after having financial education implemented all over your system, real-time data about the platform's use would be a great way to measure your program’s success. 

This is where you’ll see the goals set and met, demographics, overall activity, and knowledge gained – all of which provide valuable insight into its effectiveness. Such comprehensive reporting allows you to gauge the program's impact and calculate ROI. 

With evidence of decreased financial stress, improved credit scores, increased savings, and retirement participation, businesses can clearly illustrate the valuable role of financial education.

Learning from Effective Financial Wellness Programs of Other Businesses

In today's dynamic economic climate, some businesses are shaking up traditional payment structures, offering real benefits for employees' financial well-being.⁴ Here are some examples: 

• Flexible pay: It embodies an innovative approach where employees can choose when to receive their wages, offering greater freedom in money management. This empowers employees, reducing financial stress when unexpected expenses arise. 
• Earned wage access: This is another revolutionary scheme allowing employees access to already-earned wages whenever needed rather than waiting for the typical payday. 
• On-demand pay: The increasingly popular structure which further boosts financial wellness and gives employees the flexibility to receive their pay as they earn it. 

However, beyond these methods, having a look at the case studies of other companies and their successful financial wellness strategies can provide valuable insights into enhancing your own program.

Beyond adjusting payout systems, companies can embrace a multi-faceted approach to enhance their financial wellness programs.

Some of the best practices for implementing financial education include caring for physical health, mental wellness, and personal development – these work alongside financial education and make the program more holistic. 

As recent health and wellness initiatives show, a healthier and happier individual is beneficial for everyone. Integrating these key wellness aspects aids in nurturing well-rounded, financially literate employees, adding significant value to a company's operation.

Experience the Enrich Advantage: Enhance Your Employees' Financial Wellness Today

There's much value in comprehensive financial education, which drives a company's success from enhancing employee productivity to attracting top professionals. 

To truly understand the transformative power of implementing a financial wellness program, Enrich invites you to witness the impact firsthand. See a demo of Enrich's platform and explore how it can tailor solutions to elevate your employees' financial wellness across the business.

1 - https://www.cipd.org/uk/views-and-insights/thought-leadership/cipd-voice/cost-of-living-workplace/

2 - https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10068020/

3 - https://gflec.org/wp-content/uploads/2015/11/3313-Finlit_Report_FINAL-5.11.16.pdf

4 - https://www.everee.com/blog/on-demand-pay/