Granted, they have a dog in the hunt, but new research from Ramsey Solutions’ SmartDollar finds that adding financial wellness to employee benefits packages reduces stress, boosts morale and productivity, and helps attract and retain top talent.
More than 1,000 employee benefits decision-makers at companies of all sizes across the United States participated in the survey. The study’s objective was to understand the benefits landscape, the financial wellness market, the barriers to and impact of financial wellness, and the perceived financial health of their employees.
“We knew, even before the pandemic, that 78% of workers were living paycheck-to-paycheck,” Brian Hamilton, Senior Vice President of SmartDollar, said in a statement. “Those money problems follow people to work, leading to more problems. The survey results show just how uniquely positioned employers are to help. If done correctly, there is no doubt financial wellness is good for employees and great for the bottom line.”
Employee financial stress has been linked to increased healthcare costs, high employee turnover, low participation rates in company 401k plans, and distracted workers, yet the study finds only three in 10 companies currently offer financial wellness as an employee benefit.
Of the companies that do offer financial wellness, a vast majority (81%) say they’ve seen improvements since offering it to their teams, while a whopping 91% say financial wellness made them more competitive in recruitment and hiring.
Key Findings
- Financial wellness is the number one benefit employers are looking to add in the next 1-2 years.
- Of those who currently offer a financial wellness benefit, 90% say it is one of the most impactful benefits to their employees.
- 88% of those who offer financial wellness say their employees report less stress.
- 48% say COVID-19 increased priority for financial wellness.
- Nearly half (48%) of those surveyed said that financial stress has a significant impact on their employees.
- 77% of company benefits decision-makers say their employees are delaying retirement because of their financial situation.
ADDITIONAL SURVEY FINDINGS CAN BE FOUND HERE
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
