3 ways a financial wellness program helps improve your business
As the global economic instability has many worried that an economic recession is around the corner, financial stress is fast becoming the most significant stress factor for employees.
Financial stress takes a toll on your employee’s physical and mental health, which can damage your business’s productivity, turnover rate, and insurance costs.
This is where financial wellness programs come in. Financial wellness programs offer consultation and advice to employees on how to manage their daily expenses while also saving for the future.
In this article by Pacific Prime Hong Kong, we will explore 3 ways these programs can help both your employees and your business.
1. Increasing productivity
Financial instability can lead to lower employee engagement, distractions, and increased absenteeism, which can have a serious impact on your business’s productivity and profitability. Morgan Stanley’s recent survey on financial wellness found that nearly 80% of employees are distracted at work by financial issues.
In Hong Kong, 13% of those within working age and 17.8% of those retired reported that they were very financially unstable.
Furthermore, a survey conducted by PwC found that stressed employees are more likely to be less productive than other employees, with 26% of all surveyed employees admitting that financial stress has an impact on productivity.
Financial wellness programs are designed to help employees address these concerns. From offering advice on expenses and savings management to protecting against future financial losses, these programs can help reduce distractions employees experience at work and increase your business’s productivity.
2. Reducing employee turnover and attracting young talent
Apart from reduced productivity, financial concerns can also lead to employees switching jobs, even if the pay rise is minimal. For a 35-year-old employee with two children and a mortgage to pay off, having a financial wellness program available at your company can be the difference between him staying and leaving.
PwC’s survey found that 78% of employees who are stressed about their finances stated they would be attracted to another company that cares more about financial wellbeing.
Financial wellbeing programs can also help you attract young talent to reinvigorate your company. For instance, Millennials and Gen Xers are starting to actively look for companies that offer financial wellbeing programs.
These younger professionals have heavy financial burdens on their shoulders. Meeting monthly bill payments and paying off student loan debts are financial challenges that many younger talents face. For this reason, Millennials and Gen Xers are likely to be attracted to a company that cares more about their financial wellbeing.
From older employees trying to save up for retirement to millennials who are struggling to pay for their daily spendings, financial wellness programs are becoming more relevant and crucial to retaining and attracting talent than ever before.
3. Lowering insurance premiums
Regardless of their age, financial stress can lead to serious health issues for your employees. For one, migraine and cardiovascular disease are well-known stress-associated diseases that are on the rise. That’s not all. Money problems are also associated with insomnia and mental health issues, such as depression.
In cities like Hong Kong, where the cost of living continues to climb to new heights, the worry of not having enough money for expenses is becoming the most stressful factor in a person’s life.
For your business, these issues all translate to high health insurance premiums. More stressed employees mean more health insurance claims, which leads to higher insurance costs for your company.
Thankfully, there are plenty of employee benefits solutions that include financial wellness programs. Choosing the correct program for your employees can significantly reduce your employees’ financial stress and, in turn, lower health insurance premiums.
Getting the best financial wellness program
There are various companies offering financial wellness programs throughout Hong Kong. Figuring out the correct type of program for your employees and your budget can be a burdensome task.
For instance, getting a full review of the market, comparing costs and benefits, as well as figuring out how financial wellness programs are included as part of employee benefit solutions can be both costly and time-consuming.
By consulting our experts at Pacific Prime Hong Kong, you can get free comparisons of different employee benefits solutions today. With 19 years of experience, you will have a knowledgeable advisor by your side to consult you on the most suitable employee benefits solution for your company.
We also offer customized employee benefits solutions for our clients by working with top insurers throughout the world. To learn more about financial wellness programs and other employee benefits, contact us at Pacific Prime Hong Kong or visit us at our corporate website for more detailed information.
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