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Why HR Should Invest in Financial Wellness

How Pocketnest helps employee wellness programs increase employee recruitment, retention, and productivity


How Pocketnest helps employee wellness programs increase employee recruitment, retention, and productivity


Employee financial wellness programs—like those that leverage Pocketnest—can increase your company’s profitability by boosting employee recruitment, loyalty and retention, and productivity, while also lowering operational costs.


And that’s not just our promotional story! Bank of America found that more than 80% of employers agree that offering employee financial wellness increases employee satisfaction, loyalty, engagement, productivity, and performance (1).


Let’s dig in and learn why our employee financial experts can help make your business more successful and profitable.

(Or, skip the article and let’s chat!)




Your employees seek financial wellness


While the global pandemic may officially be over, its effects are long-lasting on employees. In the wake of COVID-19, employees are five times more worried about their finances than they are about their mental, physical or social health (2). Bank of America found that 62% of employees are stressed about their finances, and as of July 2022, employees have the lowest financial wellness rating (44%) in five years (1).


And, when considering the younger generations, many are saddled with debt. In fact, 40% of Millennial employees have a student loan, and nearly three-quarters of them say that student loans have a moderate or significant impact on their ability to meet other financial goals (3).


It’s no surprise that employees seek financial wellness support and resources from their employers.




Reduce workplace stress

Financial wellness has become a growing concern among employees in recent years, particularly as the cost of living continues to rise and economic uncertainty remains high. Many employees feel that their employer has a responsibility to support their financial wellness.


According to a study by Bank of America, 62% of employees say they are stressed about their finances, and 80% say their employer should help them reach financial wellness (1).


Offering employee financial wellness programs can help employers support their employees and address their growing financial concerns. These programs can include resources such as personalized financial planning tools, far-spanning educational materials, relevant and timely financial wellness tips, and more.


Reducing workplace stress, of course, creates a better workplace environment with happier people. It also affects your bottom line, helping you to attract and retain better talent.




Attract and retain better talent


Offering financial wellness programs can help attract and retain top talent.


From the get-go, candidates are more likely to choose your company if you offer better benefits. Bank of America found that 81% of employers say they attract more quality candidates when they offer employee wellness benefits (1).


And, talk about retention! Employees are more likely to join and stay with an employer who cares about their overall well-being, including their financial well-being.


PwC found that employees that are financially stressed are twice as likely to look for another job (4). The 2022 study found that 76% of employees that are stressed about finances are attracted to another company that cares more about their financial well-being. The story is quite similar for employees who are not financially stressed, as 57% of them had their eye on companies with better employee financial wellness benefits (4).


Of employees looking for a new job, 54% don’t believe their employer cares about their financial well-being (compared to 41% of employees not looking for a new job—which is still troubling!) (4).


When employees feel supported in all aspects of their lives, including their finances, they are more likely to be satisfied with their jobs and their employers. Bank of America found that 91% of employers see higher employee satisfaction when they offer employee wellness benefits and resources (1). Therefore, offering employee financial wellness can improve employee loyalty and reduce employee turnover.


Sometimes it’s hard to quantify the value of wellness programs, especially when they have lots of soft metrics like “improved well-being.” Well, let’s put a dollar amount on “employee retention.”


According to Gallup, a conservative cost estimate of replacing an employee is anywhere from one-half to two times that individual’s annual salary (6). Depending on your company size and average employee salary, you could spend (or save!) tens of thousands—or even millions—of dollars annually on the cost of employee turnover.


Financial education like Pocketnest can help employees feel more confident in their financial decisions and can lead to a greater sense of financial security. Pocketnest teaches your employees the importance of saving—and, critically, how to do so effectively. With a better understanding of how to save, employees can build emergency funds, plan for retirement, and achieve other financial goals.




Attract and retain millennials


Sure, employee financial wellness supports overall employee recruitment and retention. Now, let’s focus on one particular segment: millennials. (Hey, did we mention millennials are kind of our jam?! Peep the millennial infographic to learn more.)


Simply put: millennials are more likely (than Gen Xers, at least) to say that financial stress affects their job productivity (4).


Put yourself into the shoes (*Converse) of an average millennial. First off, you’re likely saddled with debt, since 40% of Millennial employees have a student loan, and nearly three-quarters of them say that student loans have a moderate or significant impact on their ability to meet other financial goals (3).


On top of that debt, you’re probably in your 30s and dealing with some big life milestones and purchases—buying a home, getting married, becoming a parent, dealing with divorce, etc. When employers and employee wellness programs can speak to their employees’ actual needs—like providing financial education and wellness in the form of an app or workshops or coaching—can reduce their financial stress and place more of their attention on your business. And, not to mention, retain amazing talent and keep them from looking elsewhere for either more money or more benefits.




Boost employee productivity, lower operational costs


Financial stress can act as an unbearable distraction and can negatively impact your employees’ productivity.


We’ve already established that millennials say financial stress affects their job productivity (4). Now, let’s talk about the entire workforce.


PwC found that 76% of stressed employees report financial worries to have negatively impacted their productivity. And, of this group, 25% report severe or major impacts (4). Further, 55% of financially-distracted and stressed employees spend 3 more hours—at work, each week—dealing with their finances instead of focusing on work (4).


When your employees have a good handle on their finances, they are less likely to be distracted by their financial worries and can focus more on your business. As PwC reports, at you can even quantify the productivity loss at 3 hours/week per employee. Imagine boosting your employee productivity by simply giving them better resources to manage their finances!





Employee financial wellness is good for business


Employee financial wellness is just good for business. With a more engaged workforce, and a better retained staff, your operational costs continue to fall.


Employee financial wellness programs—like those that leverage Pocketnest—can increase your company’s profitability by boosting employee recruitment, loyalty and retention, and productivity, while also lowering operational costs.


Are you ready to learn more? Let’s chat, friend!







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