Bridging the Gap: Understanding Financial Wellness for Employees

There is a significant gap between employees and employers regarding financial wellness programs, according to the Harvard Business Review. “80% of employees report being financially stressed. Only 28% of employers offer financial wellness programs,” the article states.  

Similarly, Forbes highlights a 2023 Transamerican Institute study showing that 77% of workers consider financial wellness programs an important benefit. 

With so much research on the need for these programs, what should employers do? 

The first way employers can bridge this gap is to learn what financial wellness is and how it can improve an employee’s overall being. In this short Q&A, we introduce the topic and offer some essential tips to get started. 

Q1: What is financial wellness? 

A: Financial wellness refers to the sense of security a person feels about their financial situation in all aspects of their life. It means having control over day-to-day finances, being prepared for emergencies and having a plan for the future. 

Q2: What role do employers play? 

A: For employers, financial wellness means ensuring that employees feel comfortable enough in their personal finances to be able to focus when they are at work. It's about creating an environment where financial stress is minimized, allowing employees to be more productive and engaged. 

Q3: How can employers help their employees achieve financial wellness? 

A: Employers can help their employees achieve financial wellness by: 

• understanding the financial picture of employees; 

• leveraging resources like financial advisors and educational tools to maximize employee assistance programs; 

• listening to feedback from employees to continuously improve financial wellness programs; and 

• prioritizing financial wellness across the organization to ensure it is part of the corporate culture. 
  
  

Q4: Why is this important? 

A: Financial wellness is crucial for several reasons: 

• It aids in the retention of talent, as employees are more likely to stay with a company that supports their financial well-being and uses innovative employee retention strategies. 

• Employees who are financially secure are less stressed, more engaged and more focused on their work. 
  
  

Q5: What services or products are helpful? 

A: Professional advisors and consultants can help guide how to implement financial wellness programs. TruePlan works closely with organizations to develop customized programs that address these needs, providing a higher standard of financial wellness. 

Take the next step! 

Prioritizing financial wellness in the workplace is not just nice to have. Increasing research, like the studies mentioned above, demonstrate that it's a must-have for any organization aiming to recruit, retain and maintain a happy, productive workforce.  

If you're looking to take the next step, TruePlan is here to help. Contact us today to learn more about our custom services.