Financial wellness has become necessary for any organization looking to improve employee engagement, retention, and overall business outcomes. HR professionals are essential in shaping these wellness programs, ensuring employees feel valued and supported financially.
But how can HR teams make a lasting impact, especially when resources are tight?
Why Financial Wellness is a Big Deal
Financial stress is one of the most significant issues impacting employees today. 57% of employees report feeling stressed about their finances, and financially stressed employees are almost five times as likely to admit that personal finances are distracting at work. This stress doesn’t just hurt individual employees—it affects the entire organization, leading to disengaged employees, lower productivity, and higher turnover rates.
A PwC survey shows that 60% of employees who participated in financial wellness programs reported less financial stress. The data supports the need for such programs, but many HR teams face challenges implementing them.
Why HR Should Care About Financial Wellness
HR professionals are often tasked with more than they can handle, and adding another program to the list might seem overwhelming. But the benefits of investing in financial wellness are worth the effort. HR can improve employee engagement by creating programs that address financial concerns, offering a way for employees to feel supported not just in their work life but also in their personal life.
In recent years, HR has been shifting toward a more holistic approach to employee benefits, recognizing that wellness goes beyond physical health. Now, mental health, financial health, fertility, and more are all considered part of comprehensive wellness programs. These areas are interconnected—financial stress directly impacts mental health and often shows up in health insurance claims. Some employees even skip medical care due to cost concerns, despite having insurance.
Employees who feel supported by their employer across all aspects of wellness are more likely to be engaged and perform better. Financial wellness programs contribute directly to this by helping reduce stress and allowing employees to focus on their work.
Simple Ways HR Can Launch Financial Wellness Programs
While the benefits of financial wellness programs are clear, HR often struggles with implementation due to a lack of resources. Here are some practical ways HR teams can get these programs off the ground:
Leverage Existing Resources
You may already have access to financial wellness tools through your company’s benefits providers. The challenge is offering these tools and managing employee engagement with them. To ensure they are being used, promote these resources through internal communication channels—like newsletters, team meetings, and employee engagement platforms. This will help drive employee engagement by clarifying how these tools can reduce financial stress.
Use your employee engagement survey to assess employees’ awareness of the available resources and their likelihood of using them. Tracking these responses will give you valuable insights into whether your communication efforts are effective and where more promotion is needed.
Offer Financial Education
One of the most impactful ways to engage employees is through financial education. Organizing workshops or webinars on topics like budgeting, investing, or managing debt can have a direct effect on employee engagement outcomes. When employees feel empowered to take control of their finances, their stress levels decrease, and they become more focused and engaged at work.
To further increase participation, consider offering one-on-one financial counseling sessions. These can be tailored to individual employee needs, driving even higher levels of engagement. You could use the employee engagement survey to measure the impact of these financial education programs and gather suggestions on what topics to cover next.
Utilize Employee Feedback
Employee feedback is important for managing HR employee engagement with financial wellness programs. Use employee engagement surveys or focus groups to understand employees’ financial challenges. This information helps you build an employee engagement strategy that directly addresses their needs and improves employee satisfaction.
For example, you can offer specific workshops if many employees face debt challenges. This shows you’re listening, which boosts engagement and improves employee engagement levels.
An employee engagement platform can help with communications and track important engagement metrics. Regularly measuring engagement ensures your programs continue to meet employee needs, making your engagement efforts more effective.
Make the Process Easy and Accessible
One of the easiest ways to drive employee engagement with financial wellness programs is to make the process simple and accessible. Centralize all your resources and educational content in one place, whether it’s an intranet page or a mobile app, so employees can access the information they need without hassle.
Automating reminders and notifications through employee engagement platforms ensures that financial wellness remains top of mind. Regularly engaging employees with updates and incentives creates an environment where they feel professionally and personally supported.
Incorporating these steps into your financial wellness strategy is more than just another task—it’s about driving true engagement and supporting employees in all aspects of their lives. When employees feel supported, the results speak for themselves: higher productivity, improved focus, and better employee engagement outcomes across the board.
The Connection Between Employee Engagement and Financial Wellness
There’s a direct link between financial wellness and employee engagement. Improving employee engagement enhances employee morale. Disengaged employees often feel undervalued, leading to low morale and poor performance. HR can drive employee engagement initiatives by designing financial wellness programs, ensuring employees feel appreciated and supported.
Many companies consider employee engagement important for productivity. An engaged employee serves as a role model, promoting a more motivated and collaborative team environment.
Boosting Employee Engagement Through Technology
To truly enhance employee engagement, HR teams should explore employee engagement software as part of their strategy. This technology allows them to track levels of employee engagement in real time, offering valuable insights into how well financial wellness programs are working. This can enable HR teams to identify areas for improvement and tailor their employee engagement strategies to meet specific needs.
Additionally, engagement software can automate employee surveys, helping HR gather feedback quickly and effectively. This saves time and ensures that HR professionals can make data-driven decisions to refine employee retention efforts further. Implementing such technology is one of the most efficient ways to increase employee engagement and help HR make impactful changes.
The Long-Term Benefits for Companies
Investing in employee financial wellness benefits the workforce and directly impacts a company’s bottom line. Organizations with highly engaged employees outperform those without by 21%. Moreover, employees who feel supported in all areas of life, including financial well-being, are more likely to stay at the company, reducing turnover costs.
Businesses that offer financial wellness programs see improvements in customer satisfaction and loyalty. Employees who are less stressed about their finances perform better, leading to a ripple effect across the organization.
Final Thoughts
HR professionals can drive employee engagement and retention by offering financial wellness programs. Helping employees with their financial challenges leads to a more engaged and productive workforce, which leads to business success.
Starting these programs may seem tough, but the long-term rewards—happier employees and better company culture—make it worth it. With the right tools and resources, you can improve your employee engagement efforts and use employee engagement measures to track the impact. This helps your company succeed while making a real difference in your employees’ lives.
