The most important financial decisions people make are often at work — from health benefits and retirement plans to tuition reimbursements and beyond. However, many employees do not feel confident in making these decisions. According to 2024 data from the World Economic Forum, 48% of US adults are considered financially literate with 35% who have an understanding of financial risk. Employers are in a unique position to support employees’ financial wellness since doing so can boost workforce and business goals overall.
Here are three ways your company can benefit from offering financial wellness support to workers:
Improved recruitment and retention
Many job seekers look for employers who offer valuable benefits, including financial wellness support. A 2023 report by the Transamerica Institute found that 77% of workers view financial wellness programs as an important benefit, yet only 28% of employers have them. Starting a program can help your company stand out — to potential workers and consumers — among your competition as a business that prioritizes the well-being of its workers. This can lead to better workforce retention as well, since employees will feel more loyalty toward a company that cares about their needs beyond work. Additionally, financial security is a big morale booster, contributing to a healthy workplace culture that will make workers want to stay with your company.
Employees spend an average of eight hours a week dealing with financial issues, with four of those hours occurring at work.
Increased productivity
Financial problems can be a huge stressor to employees, making them also a hindrance to productivity. In fact, a 2023 report by the TIAA Institute and GFLEC found that employees spend an average of eight hours a week dealing with financial issues, with four of those hours occurring at work. Some workers may even need to take time off to deal with their financial issues, which can leave your team in a bind without proper coverage. Financial wellness benefits can reduce some of these stressful distractions by giving workers the support and security needed to handle their issues. As their financial confidence improves, so will their focus and productivity on the job.
Lower company healthcare costs
Providing financial wellness support improves your workforce’s overall health, lowering company healthcare costs in the long-run. Physical effects of financial stress can include mood swings, stomach issues, fatigue, and insomnia, according to the American Institute of Stress. These symptoms can escalate to greater mental health concerns, negatively impacting the morale and productivity of financially stressed workers. Offering support to improve employees’ financial health will give their mental and physical well-being a boost, meaning less money your company has to spend on healthcare coverage.
GCO partners with employers to provide ridematching services, worksite assistance, commuter incentive programs and more.