How Financial Wellness at Work Boosts Employee Retention

In 2020, as vaccine rollouts promised a return to the ‘new normal,’ a fundamental shift occurred in the American economy. Four million people quit their jobs en masse, according to a report by the Labor Department. With millions still unemployed, employers have run into a new problem – finding and retaining talent.

Talent scouts, HR managers and recruiters are now navigating a candidate-driven job market. A survey by SHRM of over 1,500 talent acquisition specialists suggests that to stay competitive in this new landscape, organizations will successfully attract and keep talent by focusing on employee needs first, and by offering holistic benefits packages. Top-tier candidates are looking at attractive salaries and robust benefits in their search for innovative and pro-employee workplaces.. For many companies, this has been a struggle. Work from home has become one highly-desirable perk that some employers are unwilling or unable to offer.

According to SHRM, 55% of workers said they prefer working remotely at least three days a week, compared to 68% of executives. The reason to return to the office? Company culture. Many executives believe that company culture dissolves with online exchanges and video conferences, and many insist on employees working in the office even if it means losing their best talent.

Conversely, many employees established a better work/life balance while working from home. They were able to spend more time with their families, eliminate their commute, save money on meals and still maintain their role for their employer.

With the risk of losing a strong workforce in mind, maintaining employee satisfaction is now a goal shared by employees and employers alike. With talent in short supply, financial wellness programs are one key benefit that employers can offer to support this trend.

Financial Wellness and Employee Retention

With workers quitting their jobs in record numbers, it’s important that employers consider a financial wellness program to demonstrate that they value their needs. Out of the many reasons that motivate an employee to stay or leave, financial wellness is one factor that drives their decision to stay.

In a study conducted by Morgan Stanley in 2019, financial stress was shown to have a major impact on how employees view their employers. Finances were found to be the greatest stressor among employees at all income levels, above stressors such as their work situation, health issues, or family issues. In fact, 60% of employees surveyed said that they would be more likely to stay at a job if their employer offered financial wellness benefits to help them manage their personal finances. While this study was conducted before the pandemic, it offers a valuable insight; financial wellness is top of mind for the majority of your workforce.

Employee Retention | Listening to Their Needs

A financial wellness program demonstrates a commitment to the financial health of your current employees. When employees feel supported, they are more likely to stay loyal; 56% of employees say they feel positive about their employer when a financial wellness benefit was offered. And while the majority of employees prefer working from home, many positions can’t operate remotely. By integrating a financial wellness program into your benefits plan, you can retain talent even when working from home isn’t an option.

In a job market fighting for top-tier talent, having a financial wellness program in your company’s benefit package can help set you apart from others. My Secure Advantage (MSA) is a national leader in financial wellness programs. MSA provides unbiased, personal finance coaching to thousands of MSA members each month through over 15,000 employer groups, companies and sponsors. MSA’s expertise meets its members’ unique needs and challenges by delivering multi-dimensional, scalable solutions. With over one million consultations complete, MSA equips and empowers its members to make sustainable behavior changes so they may achieve long-term financial well-being to improve their quality of life.

My Secure Advantage helps top employers retain an outstanding workforce by addressing the financial needs of their employees. Contact us today for more information about our services and to receive a demonstration of our financial wellness programs.