The connection between workplace culture and financial well-being is a two-way street. Workplace stress can impact your financial well-being and vice versa. But it’s not just a matter of whether you’re happy at work: how your employer treats you financially can significantly impact your feelings about your job. Workplace financial well-being is a huge factor in employee engagement and satisfaction. It includes good wages and benefits such as retirement plans, insurance benefits, financial education programs, and possibly stock ownership plans and other financial programs.
Some examples of positive workplace culture are open communication and education. These help workers navigate their employee benefits, which in turn helps them manage their financial lives better.
The benefits of having financially empowered employees include the following. Employees:
- Feel that they can afford to contribute to retirement plans, employee stock ownership plans, emergency funds, student loan repayment plans, etc. Employees concerned about their financial future can ultimately have peace of mind at work–enabling them to make informed decisions about future financial planning.
- Do not feel financially stressed. Money is the number one stressor for adults aged 18-57.
- Feel that they can pay their bills. Over 40% of Americans, in general, struggle to pay them.
- Do not feel they need to quit their jobs because of poor pay. A motivator in a job search is an attractive fixed salary and compensation.
- Feel that their work will help them become financially secure. Knowing that there are financial benefits to take advantage of can provide a sense of value to one’s work.
- Feel that their employers are vested in their financial security. This can remove another source of work stress.
- They may have a financial stake in their company, especially regarding stock ownership programs. Employees with a financial stake feel invested in their company’s performance.
- Perform better. Feeling invested in company performance can drive one’s performance.
A positive workplace culture can promote financial well-being by providing employees with the resources, support, and stability they need to make informed financial decisions and maintain good financial health.
April is financial literacy month- what is your credit union doing to impact employee financial wellbeing? Contact us to learn more about how you can provide Financial Wellness to your members.