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Emergencies can come anytime without a single knock on the door. Reports revealed that most employees could not cover a $400 expense with cash, while many were unable to pay the expenses by any means.
Fremont, CA: The coronavirus pandemic has shown employees how fragile their financial security is. Surveys revealed that 88 percent of Americans said that this COVID-19 crisis has caused stress on their personal finances, which highlights people’s lack of preparedness for economic ups and downs. This is why employers need to think about implementing robust financial wellness programs for employees.
Let us look at the need for financial wellness benefits for employees:
Improve Employee Engagement
Employee engagement is necessary to drive success. Surveys revealed that 50 percent of employees admitted that financial stress hinders their productivity and cause distraction at work. Most employees agreed that they are more willing to stick with a company for a longer period of time if that company offers financial wellness benefits.
Encouraging Employees to Create an Emergency Fund
Emergencies can come anytime without a single knock on the door. Reports revealed that most employees could not cover a $400 expense with cash, while many were unable to pay the expenses by any means. This highlights why employers need to educate employees on the significance of an emergency fund and retirement plan. Employers can also start using payroll deduction to encourage employees to create and continually contribute to an emergency fund. When employees are financially secured enough to cushion a sudden financial blow, they are more likely to put more effort into work.
Reducing Employee Stress Over Debt
In addition to dealing with stress at the workplace, employees are struggling to pay off their debts, such as student loans, mortgages, credit cards, or other loans. Total US consumer debt is at $13.86 trillion. If employers can offer some relief on employees’ student debt repayment, it would make a dramatic difference in their overall financial well-being. Employees need to find effective ways to alleviate employee stress over debt.