Small and mid-sized companies can utilize and leverage the valuable information in this article, along with their own research, to support their decision-making process in securing the right financial wellness program for their employees.
In order to make informed choices when it comes to implementing financial wellness programs for employees, business owners must first master their emotions and use logic. In the past there was more theory than data about the benefits of a financial wellness program for both companies and employees. Now that more studies have been done, the date shows both the health and financial benefits.
The question is not so much, if you can improve your employee engagement and wellbeing by utilizing a Financial Wellness program, but more along the lines of are you ready to and which company to partner with.
As a Financial Therapist the biggest mistake I see business owners make is using emotions to make decisions rather than logic. Business owners are often stuck and unable to overcome old habits and programs passed down to them that are no longer relevant. This keeps them from innovating and investing in the future of their business, because they are stuck in the past.
After the pandemic, the discussion shifted from whether or not paying attention to employee wellbeing was the responsibility of the company, to how can the company share in the responsibility with the employee. You don’t have to be passionate about financial wellness to see its impact. It’s becoming more clear that companies of all sizes can benefit from incorporating financial wellness programs into their benefits package.
While larger companies have already embraced these programs, smaller companies with revenues between $500,000 to $50,000,000 may face unique challenges in adopting them. In this article, we'll explore some of the struggles and objections that small and midsized companies may have, as well as the compelling benefits of including financial wellness programs in their employee benefits package.
One of the main objections that small and midsized companies may have when considering financial wellness programs is the perceived cost. With limited budgets and resources, smaller companies may worry about the financial investment required to implement such programs. However, research shows that the return on investment (ROI) of financial wellness programs can be substantial, outweighing the initial costs.
It is also important to consider investing money into employees rather than paying more taxes. Talking to your accountant and asking specific questions like, “could we save on taxes in any way if we put money into employee wellness programs. You can also ask the wellness program you decide to work with to help you find the money. They usually have creative ways that you may not have thought about.
Based on the studies, employees who participate in financial wellness programs are more productive, engaged, and loyal to their employers. They also tend to have reduced financial stress, which can result in lower absenteeism, decreased healthcare costs, and improved overall well-being. In fact, a study by PricewaterhouseCoopers found that for every dollar spent on financial wellness programs, companies can expect an average return of $3 in reduced healthcare costs and increased productivity.
Another objection that small and mid-sized companies may have is the perception that financial wellness programs are only relevant for larger corporations with extensive benefits packages. However, financial wellness programs can be tailored to the unique needs and budgets of smaller companies too.
These programs can range from simple educational resources and tools to more comprehensive offerings, such as one-on-one financial coaching, workshops, and customized financial plans. Smaller companies can choose the level of support that fits their budget while still delivering significant benefits to their employees. After all, a financially empowered workforce can be a key driver of business success, regardless of the company's size.
As awareness of the connection between financial well-being and overall wellness grows, more experts in the field of financial therapy, like me, (Kiné Corder) are advocating for the integration of financial wellness programs in the workplace. Our new research and outstanding expertise in the field can help companies understand the tangible benefits of implementing financial wellness programs.
Although I am passionate about Financial Therapy. I am more passionate about companies making logical decisions. Like any business decision that could affect bottomline, this decision is not to be taken lightly. Making an informed decision on whether or not a financial well-being program would be not only useful, but also utilized by employees is critical. It is easier to survey employees and get buyin in a small or midsize company than it is in a larger company. It’s also easier to make shifts to get the most out of the program so that it adds to the success of the small or midsize business rather than take away from it.
Despite potential objections there are also good reasons to consider implementing a Financial Wellness program into a company's benefits package. The ROI of these programs, along with the tailored offerings that can fit smaller budgets, make them a compelling option for companies of all sizes.
By prioritizing the financial well-being of employees, companies can foster a more engaged, productive, and loyal workforce. So, don't let the size of your team or your budget deter you from unlocking the benefits of a financial wellness program. Companies like Morgan Stanley and Ameriprise Financial have options that could fit your needs. Consider the power of financial wellness in your workplace, do your research, survey your employees, and take the best next step.
One of the unique aspects of Presidential Lifestyle is its emphasis on the intersection of finances and mental health. Kiné Corder encourages her clients to foster a holistic approach by recognizing the emotional and psychological aspects of money management.