Robust employee benefits that help attract top talent are vital tools for growing businesses. Comprehensive benefits packages help bring in the best workers and promote employee retention and business success, as employee happiness affects all areas of your company.
These days employees are demanding more benefits that address various needs, including promoting mental and financial health. For example, MetLife's 2022 Employee Benefit Trends Study finds that employees who are "holistically healthy"—including financially—are 74% more likely to feel satisfied with their jobs. So it's no surprise that 80% of employers prioritize employee benefits that they'll carry throughout their lives.
While some benefits are mandatory, such as workers' compensation insurance and Family and Medical Leave Act (FMLA) protections, many others, such as gym reimbursements and legal counseling, are discretionary. Employers who think creatively about those "extra" benefits can succeed at attracting and keeping the workers who can help them the most.
The employment landscape has been transformed over the last several years by the "Great Reshuffle": Workers are switching jobs en masse in search of new types of work, better pay, more flexibility, and improved benefits.
The numbers are too big for employers to ignore: 50.5 million U.S. workers resigned in 2022, breaking the record for the second year in a row. And in many cases, those workers were looking for employers that could use benefits to help them design balanced, healthful and financially sustainable lives.
One aspect of that shift is a greater emphasis on benefits programs that help workers cultivate wellness, reduce financial stress and pursue holistic financial health. In addition, employees now expect options beyond the standard benefits package of life insurance, health insurance, and retirement benefits.
BrightPlan's 2022 Wellness Barometer Survey found that "financial wellness" programs now rank at the top of the list of employees' most-desired benefits. More than half—54%—of survey respondents prioritized financial wellness benefits, an increase from 29% in 2021. As business owners look to hire and retain top talent, it's become clear that employees' expectations are evolving and that financial education is an in-demand benefit.
Providing financial education benefits is undoubtedly a perk for employees, but it's a reciprocal benefit that, in turn, supports the company's success.
Employees with high financial literacy are far less likely to be distracted by their money-related concerns. According to the 2022 PwC Employee Financial Wellness Survey, 76% of stressed employees say financial worries have negatively impacted their productivity. And a 2020 study by TIAA Institute and the Global Financial Literacy Excellence Center found that financially literate employees spend an average of an hour per week of work time on personal financial management, while workers with low financial literacy spend six.
Being financially stressed makes employees twice as likely as those not stressed to look for a new job (38% compared to 16%), according to the PwC survey. And workers are seeking employers who seem to care about their financial concerns, with 76% of employees stressed about finances likely to seek another job with a more empathetic employer. With employees prioritizing employers who take pains to support them in their financial lives, workplaces that provide structured programming to do so will be able to increase loyalty and retention.
The PwC survey shows that among workers who are stressed about money and see it damaging their productivity, three-quarters say that this dynamic has injured their self-esteem. Lowered self-esteem is a blow to workers' confidence, which can negatively impact their ability to bring their best selves to the office and work productively as part of a team.
By helping employees gain self-assurance with the financial part of their lives, financial wellness programs ensure that everyone on each team is confident and fully engaged in the work they were hired to do.
High-quality financial education delivers what today's employees are eager to find—a helping hand in figuring out how to successfully set up and maintain the financial aspect of their multifaceted lives. In addition, these programs give your employees insight into personal finances, including in the categories below.
To help employers promote financial literacy and wellness among their employees, Seacoast Bank offers Seacoast Financial Wellness. We tap into our experience in personal banking, small business banking, and commercial banking to provide employees with information and guidance to help them achieve financial wellness—and be happier, more productive employees.