During a season of growth, your company may have the free
cash flow to reinvest in the employees fueling your success. The
word invest here is pointed, because not all salary and benefits
spending nets the same business results. Spending that addresses
employees’ needs and wants, while supporting workplace
engagement and productivity is the win-win you’re looking for.
One employee benefit worth investigating is financial wellness.
In a recent survey, 83% of human resources professionals said
that personal financial challenges have a large or some impact on
employee work performance.1 Stress and the ability to focus are
aspects of employee work performance that are negatively affected
when employees face personal financial challenges.
The number of companies promoting financial wellness in the
workplace is on the rise. Human resources consulting firm Aon
Hewitt polled more than 400 companies and found that three out of
four organizations are somewhat or very likely
to expand employee benefits designed to
promote financial wellness.2 If they do, they’re
likely to see the win-win situation every
company with this employee benefit looks for:
up to $3 saved for each dollar they spend. 3
The high cost of financial stress
According to the American Psychological
Association survey, Stress in AmericaTM,
money and finances are and have been
the top stressors since the survey began
in 2007.4 The repercussions of financial
stress in the workplace can be detrimental
to a company’s bottom line. In a survey by
PricewaterhouseCoopers, 20% of employees
said that personal financial issues are a
distraction at work. What’s more, 37% said
they spend three or more hours each week
thinking about or dealing with issues related
to their personal finances.5
In a survey by MetLife, 22% of employees
said they had taken unexpected time off to
deal with a financial issue.6 Stress also takes
a toll on workers’ physical health, making
individuals vulnerable to illness that, in turn,
increases health care spending.
A Federal Reserve study found that
financial stress costs an employer an average
of $5,000 per employee per year.7 With this
information in mind, employers of all sizes
should consider promoting financial wellness
by helping their employees develop the skills
to better manage their money.
Money on the mind
Aon Hewitt’s Financial MindsetTM Study
found that 60% of employees describe
themselves as just getting by or experiencing
financial difficulties.8 They say debt is a
problem, and a majority of employees have
not done adequate long-term planning. The
study also shows that employees generally
have good intentions and understand that they
need to save. However, they feel overwhelmed
and lack full confidence when it comes to
investing and planning for their future.
The study cites that employees are looking
for their employers to provide guidance to
help them make smart financial decisions.
They want help saving for retirement,
emergencies, education, and their shortand
long-term wants and needs. Most of
all, they want unbiased financial advice.
This includes an assessment of their current
financial situations, how to get on track
for retirement, and how to manage their
day-to-day finances. Employees are also less
interested in general financial education
and more interested in topics relevant to
their specific situation.
How employers can help
You now know about the financial worries that plague your employees and the type of help
they’re looking for from employers. Here are several strategies you can implement to help
improve their financial situations.
ADP® is in your corner
There are many ways ADP can help you help your employees feel less financial pressure. We can
help you evaluate the competitiveness of your pay strategy. In doing so, you can look to offer more
competitive compensation and benefit packages. ADP can also help you offer a 401(k) retirement
savings plan to help employees save for a secure financial future.
1 Society for Human Resource Management, SHRM Research Spotlight: Financial Education Initiatives in the Workplace.
2 Aon Hewitt, 2014 Hot Topics in Retirement.
3 Consumer Financial Protection Bureau (CFPB), Financial wellness at work.
4 American Psychological Association, Stress in America™ survey.
5 PricewaterhouseCoopers, Employee Financial Wellness Survey.
6 MetLife, Inc., 10th Annual Study of Employee Benefits Trends: Seeing Opportunity in Shifting Tides.
7 Quian, Ruisha, “The Toll of Financial Stress in the Workplace,” Kiplinger, June 18, 2013.
8 Aon Hewitt, Financial MindsetTM Study.
- HR Management,
- Talent Management,
- Human Capital Management
- Research for Human Resources Professionals