Financial Wellness for Employees: A New Approach to Emotional Well-being

Since the start of the COVID-19 pandemic, financial security has been a top concern for employees across the country. According to an article from BenefitsPro.com, “A recent survey from the National Endowment for Financial Education found that nearly 9 in 10 (88%) Americans said that the COVID-19 crisis is causing stress on their personal finances.”

No longer a ‘nice to have,’ innovative employers acknowledge the connection between financial stress and overall health, both emotional and physical. These employers provide resources that help employees cope with financial stress. Financial wellness programs offer employees educational resources and personalized coaching to address financial concerns. Wellness programs encompass a vast array of issues, from saving for retirement to paying off student debt. We’ve compiled a list of some of the ways implementing a financial wellness program decreases stress and helps employees thrive.

What is a Financial Wellness Program?

According to a Bank of America Study, nearly 95% of employers feel responsible for their employees’ financial wellness, and 46% of companies now offer financial wellness programs to workers (increased from 40% in 2020). This indicates that financial wellness programs are on the rise, and more employers are embracing the benefits of offering resources to employees.

A financial wellness program provides tools to help individuals manage their finances. Programs might include resources like:

• Financial planning seminars or webinars covering a range of topics.
• One-on-one sessions with financial coaches to address individual concerns.
• Online educational resources and literature to encourage further research and planning.
• Company-wide financial programs, like 401(k) enrollment, to get employees started on a path to success.

A successful financial wellness program should provide holistic counseling tailored to address each employees’ individual needs.

How Does Financial Stress Affect Health?

For most employees experiencing financial stress, distraction can become a chronic problem. An article on financial well-being in Corporate Wellness Magazine states that “employees experiencing financial stress are less productive and in worse financial shape than other employees.”

But financial stress impacts more than an employee’s performance at work. Stress stemming from insufficient finances may manifest as physical symptoms and poor mental health. A 2021 survey found that 57% of employees avoided addressing medical issues due to increased financial stress and lack of funds.

Additionally, financial stress may increase the likelihood of serious medical events occurring in the future. An article on Sentry Health states that “high financial stress can increase the likelihood of acute illness, high blood pressure, and other physical health problems.”

With the consequences of financial stress wreaking havoc on employees’ productivity, overall health and well-being, it’s more important than ever to offer financial wellness programs to support employee health.

How Do Financial Wellness Programs Improve Emotional Well-being?

Many financial wellness programs offer vulnerable employees the support and resources they need to navigate challenging financial circumstances and get back on their feet. Financial wellness programs improve employee mental health by:

• Educating employees about the benefits of setting aside money for an emergency fund, creating peace-of-mind and financial independence. Benefits Pro cites a Federal Reserve report from 2019, in which researchers found “37% of adults could not cover a $400 expense with cash or a cash equivalent, while another 12% of adults said they would be unable to pay the expense by any means.”
• Increasing productivity at work. Employees who aren’t distracted by their financial stress are more productive, more creative, and more engaged with their team members.
• Improving mental health by decreasing overall stress. In addition to symptoms like high blood pressure, stress can cause stomach aches, headaches, and tight muscles. Stress reduction may result in less pain and inflammation in the body, and greater mental buoyancy.
• Encouraging employee engagement. Employees are more likely to engage with company resources and take advantage of free programs and events if they have a financial wellness program to help guide them through the process.

MSA Offers Employees the Support They Need

It’s clear that financial wellness programs improve employee mental health and create a cohesive and positive team environment. At My Secure Advantage, our team is passionate about working with employees on a one-on-one basis to find personalized solutions for their financial concerns. MSA has a team of dedicated, empathetic, and professional financial coaches who collaborate with your company to improve employees’ overall wellness. By implementing a financial wellness program, practicing smart habits, and communicating with employees about their needs, your team will be on the path to financial well-being.

Information provided in this article is for informational purposes only and is not intended to offer specific personalized investment, financial planning, tax, legal or accounting advice.  We recommend that you consult an attorney, tax advisor or accountant regarding your unique circumstances.

My Secure Advantage, Inc. or any of its representatives do not endorse any of the websites or company names listed here.