Today’s economy is in a state of seemingly perpetual chaos that all started back in 2008 with the housing market crash. Although the majority of the economy has since recovered from the 2008 recession, it is still fresh in the minds of many. Especially when the events of early 2020 unfolded as they did.
When the COVID-19 pandemic began sweeping its way across the globe, many organizations were forced to close their doors and send their staff into unemployment. On top of that, many older members of the workforce chose to leave their roles of their own accord in order to seek early retirement.
All-in-all, the economy was a mess in the wake of COVID-19 for a wide variety of reasons. Unemployment rates were climbing, but so were the amount of void jobs available. This initially created a very employee friendly job market. In turn, employees were able to demand a certain amount of benefits and improvements seen in the workplace. Now, as the COVID-19 pandemic has begun to fade some, and inflation rates are soaring, the job market is beginning to even out a little bit.
This is once again making job security and financial well being a top priority among consumers, job seekers, and employees. For employers, it’s important to understand how financial wellness can actually create a healthier, more engaged, and more productive workforce.
“73% of employees feel that their financial situation had a negative impact on their mental health in 2020. Most of our employees are mentally stressed and that’s not good for them, or for the business. It is important to understand that individuals who are experiencing serious stress may not be able to perform exactly as they have in the past.”
Understanding Financial Wellness
Before an employer can effectively address financial education throughout their staff, they need to understand what type of financial education will most benefit their employees. In most cases, they’re going to want to utilize a comprehensive approach to education techniques.
A good place to start, though, is often with simple money management. This is because a lot of people don’t have the fundamental information on how to separate and manage their money in order to build wealth. By starting with the basics, you can also give yourself an opportunity to gauge how much knowledge your employees are bringing to the table when it comes to financial wellness.
“Financial wellness, I mean – I think it’s one of the main drivers right now among job-seekers. People want to earn a comfortable amount, on a regular basis and they want to actively fear for their families needs. When individuals are put in that position, it’s a lot of stress to handle.”
– Juan Pablo Cappello, Co-Founder and CEO, Nue Life –
The aftermath of the COVID-19 pandemic demonstrated just how large of a role financial wellness plays in the lives of millions of people domestically and internationally. When employees feel concerned about an oncoming recession, layoffs, or an inability to handle their financial obligations, their mentality can plummet which can impact overall mental health, as well as things like productivity levels, engagement, and performance.
“I don’t think depression has ever been recognized with such reverence until the COVID-19 pandemic made it an unignorable reality for so, so many people. In that way, we can at least be thankful that mental health has a larger role in the conversation today.”
– Jae Pak, Founder, Jae Pak MD Medical –
Teaching Employees how to Make Their Money Grow
Once you understand how important financial wellness and wellbeing is to employees, the value of financial education will start to settle in as well. You should have no issue in guiding your employees on wealth building strategies that they can actively implement into their everyday lives in order to benefit their own financial growth.
“It’s always really cool to see my team members grow and evolve in their personal endeavors. No one wants to be working forever, and I think as a leader it’s partially my job to offer financial education opportunities free of cost to my employees.”
– Lina Miranda, VP Marketing, AdQuick –
By offering employees free financial management lessons, you can also actively promote engagement and loyalty among your staff. This is because they’ll see you actively invest in their own ability to create a state of financial wellness that they feel comfortable in.
In turn, by investing in your employees’ financial wellness, they’ll return the favor and invest in the companies as well.
“Part of developing a healthy company culture involves dedicating time, resources, and energy to the employees that make your organization possible. Investing in your staff’s wellness at all three levels; physical, mental, and financial, will almost always pay off in the long run.”
– Sasha Ramani, Associate Director of Corporate Strategy, MPOWER Financing –
Financial Wellness Translates to Physical Health
It is also true that financial wellness can often translate to higher levels of physical health. This is simply because of the access to healthcare that comes with being able to afford a health insurance policy. Not only that, but the insurance is only a fraction of the expense. If there are any serious health complications causing issues, the procedures or medications involved also come with a hefty price tag.
This is just on the medical side of things, too. Many adults find their exercise in a gym or weight room. However, all of these establishments require a membership which, again, costs money.
“If you can’t afford healthcare, or the procedures involved in fixing minor health complications, these will just continue to compound on themselves. Offering employees a sense of financial wellness will allow them the ability to seek any medical attention they need.”
– Dakota McDaniels, Chief Product Officer, Pluto –
There are many modernized healthcare plans that employers can offer. Many organizations, though, are taking it upon themselves to promote and encourage physical wellness within their staff. For instance, many organizations offer employees access to an in-office gym, especially if they still have employees coming into the office on a regular basis. Other brands will host internal health-and-wellness based contests that are all in the spirit of pursuing a healthier lifestyle.
“It’s important for employers to recognize their role in an employee’s overall lifestyle. The sedentary life that comes with a lot of office and desk-jobs is not without its physical drawbacks. Promoting physical exercise and various wellness programs is a good way to keep your employees active and healthy.”
– Alex Novak, CEO, SLR –
Optimizing Mental Health on Top
Financial wellness is also a contributor to mental health. This concept was touched on briefly above but is well worth revisiting. Mental health has become a major concern for many organizational leaders over the last couple of years as depression, anxiety, and other mental health conditions have come into the limelight in the wake of the COVID-19 pandemic.
However, what was also highlighted was the lack of accessible resources in the pursuit of a mental health journey. In other words, without a sense of financial wellbeing, it can be difficult to even seek the appropriate mental healthcare needed.
“Financial wellness plays a major role in mental health. When people have that sense of security, it’s much easier for them to focus on the tasks at hand and their spreadsheets, or whatever it is. But when there’s that underlying fear that it could all come crashing down, that can shake people up a bit.”
– Jesse DeBear, Fractional CMO, Renew Anchored Dentures –
Now, many organizations are taking it upon themselves to evaluate the healthcare plans that they offer their employees and are working to make sure they include mental health provisions.
“Again, there are ways that employers can address the comprehensive health of their employers, all through a well-devised benefits plan. Job security and high-quality benefits are two of the main priorities among all job-seekers right now.”
– Brittany Dolin, Co-Founder, Pocketbook Agency –
How it all Correlates
Health and wellness are not singular. The three main components to someone’s overall health are physical, mental, and financial. All three of these different wellness categories play into one another and benefit from one another. Your physical and mental wellness are very tightly correlated, and financial wellness allows for a safe and secure environment in which you can thrive.
“The health of the individuals that make your company possible should always be a number one priority for any leader. Understanding that financial wellness plays a major role in that overall wellness for the majority of people is a lesson well learned early-on.”
– Bryan Jones, CEO, Truckbase –
Even when it comes to grocery shopping, financial wellness plays a major role. This is because high-quality ingredients that are healthy and organic are typically more expensive than cheap, unhealthy alternatives.
By promoting financial wellness in your employees, you can give them the power they need to take control over their diet and give their body all the nutrients they need on a weekly basis.
“It really is all about access. And that comes into light the more and more you connect the dots. Access, though, is really just another term for wealth. The more money you have, the more access you have to the whole world, essentially. That’s the system we work within, unfortunately.”
– Ian Heyman, Founder, MDP –
A few Final Thoughts
By offering employees free financial coaching and education, you can proactively aid them in achieving their own financial independence and wellness, which will lead to a more engaged, healthier, and loyal workforce overall.
“Employers are well aware of how stress reduces productivity, and recognize that helping their employees learn about financial wellness can help strengthen the business’s bottom line.”
– Choice Wealth –
