Financial Wellness: More Than A Buzzword

Stethoscope on a heap of dollars, slight blue toned

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In today’s fast-paced, ever-changing world of aggregators, apps, social media, and endless media, results are within reach. Gratification comes at the click of a button, and thanks to mortgage calculators and online billing, our financial lives have become more streamlined. But, does that mean we necessarily have implemented healthy financial wellness? No, not in the least.

Financial wellness is more than a person’s financial “health” – it’s an understanding of one’s financial situation, attitude, behaviors, and managing it all in a way that prepares employees for financial changes. It’s not about being wealthy and having lots of money; it’s about being able to successfully manage the money one does have.

Numbers Tell the Story

Your employees’ financial wellness significantly contributes to their ability to be productive and make a positive impact on the organization. Of all stressors, financial concerns remain number one. Let’s take a look at some stats from a recent financial well-being survey conducted by Price Waterhouse Coopers:

  • 52% of all employees who participated in the survey stated dealing with their financial situation was stressful
  • 23% of participants admitted that issues with their personal finances have been a distraction at work
  • 19% of that group say they spend five hours or more at work each week either thinking about or dealing with issues related to their personal finances

These are some big numbers that equal major costs to the company. Addressing your employees’ financial well-being is not only the right thing to do, but will make a positive impact on your bottom line.

What Can You Do to Help Your Employees?

Technology makes our daily lives easier, but it doesn’t always account for our financial futures. Even some of the brightest app developers and CEOs of large organizations don’t understand how to manage their finances today in order to plan for tomorrow. Luckily, many companies offer financial planning programs to their employees to help them balance their financial wellness. Many programs exist – Apex can help employers find the right fit and help your employees improve their financial wellness.

These programs are often negotiated in an employee’s benefits package, and help employees plan now for future rewards later. For these programs to be beneficial to employers, they need to deliver valuable tools for employees’ on-going benefit. But what is of value for your employees’ financial wellness health?

When measuring value, look for programs that provide rippling effects: extra steps and guidance employees receive beyond the core services and advice their employers pay for with the initial time/financial investment.

Employees are looking for credible advice and guidance for their financial wellness issues. As employees are thirsting for resources for day-to-day budgeting and estimating, as well as levers they can pull for future rewards, financial wellness procedures should be considered natural extensions of every employee benefits program.

Buzzword, Really?

So does that make “financial wellness” a buzzword? Let’s look at the facts: a buzzword is a word or phrase used to impress, or one that is fashionable. Although financial wellness may sound impressive, it has a tangible benefit and positive effect upon certain groups of people – it allows employers to help their employees plan today, in order to be rewarded tomorrow. True, it’s not the instant gratification that our society yearns for; but patience is, after all, a virtue – making financial wellness more than a buzzword.

Scott Long, Advisor

Sources:
Finwellgroup.com
Definitionofwellness.com
Workforce.com

http://www.pwc.com

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