Rising healthcare and housing costs, economic uncertainty, identity theft and more are contributing to mounting financial stress for today’s employees. As a result, they are distracted with external concerns preventing them from performing at their full capacity while at work. However, there is a benefit employers can provide to alleviate major financial concerns while delivering real value. Offering access to financial wellness programs for employees is a valuable solution employers should consider, addressing some of the financial challenges their employees are facing today.
A comprehensive financial wellness program for employees also includes identity protection to give employees peace of mind. This protection, paired with financial management, creates a benefits program that decreases employee financial stress, increases productivity, and prevents unnecessary losses in revenue.
Employee financial stress negatively affects your business
Studies show employees at all income levels are experiencing burnout and poor performance, leading to retention issues. The costs associated with low productivity can be detrimental to a business’s bottom line.
The Financial Post states that “Employee financial stress is expected to [have] cost companies more than $40 billion in lost productivity in 2022.”Employees who experience financial stress are far less productive than those who feel confident in their financial situation. And 84% of employees agree that employers should be more involved with helping them through financial challenges.
Your employees are worried about identity theft
It’s a growing problem that has expanded in new ways since the onset of the COVID-19 pandemic, which prompted wide changes in digital behaviors. Identity Theft led to a loss of $52 billion, affecting more than 42 million US consumer victims.
Employees aren’t the only ones affected by identity theft. This crime can hurt employers too. The threat of identity theft contributes to employee disengagement which can cost employers as much as $500 billion a year, according to a Gallup study.
Employee stress is worse than quiet quitting
A study from Harvard Business Review shows that $150 billion in productivity was lost in a single year when employees came to work while stressed, which is far greater than costs associated with employees not showing up to work at all.Employees who show up to work financially stressed are unable to perform their duties to the best of their abilities, leading to a higher cost and greater drop in overall productivity.
Financial stress can have a serious effect not only on productivity, but also on workers’ mental well-being. In a study from Bankrate and Psych Central, 42% of adults in the United States claimed money concerns have had a negative impact on their mental health.
Solution: A modern financial wellness program for employees
A financial wellness program for employees can offer perks that help individuals save money, make money or more confidently manage their money. These programs can also help employees reduce expenses or save for retirement.
Another key component is identity theft protection. Identity theft protection equips employees with proactive monitoring skills and may offer features to help protect themselves from new risks. This is an important benefit allowing employees to engage at work when they’re not worried about their data security.
Companies that offer Identity Protection and Financial Management solutions are seeing a lift in employee retention and satisfaction. In fact, 90% of employers claim financial wellness benefits have positively impacted their workforce.
Choosing the right partner for a financial wellness program
From credit education to digital privacy and identity protection, Experian offers comprehensive financial wellness benefits to support employees’ financial goals. We understand that a happy employee is a healthier and more productive member of your workforce. Our solution is designed to offer your team a modern financial wellness platform with more than 50 features to help your employees fast-track their financial goals.
Learn how you can help safeguard your business from costs associated with financially distracted workers with Experian® My Financial Expert®, a flexible employee benefits platform with over 50 powerful financial wellness features, including identity, device, and data protection.
To learn more about this financial benefit for your employees,visit our website here.