Financial stress can hurt a company and its employees. Job satisfaction, attitude, and performance can also be affected when finances come into play, making it challenging to succeed inside and outside the workplace. Making sure companies have a positive company culture, flexibility, diversity and inclusion, benefits, and other opportunities will create a better environment for others and a better relationship with finances.
A national survey distributed by the U.S. Federal Reserve states 40% of people cannot afford $400 of emergency expenses, and 42% of Americans believed household house expenses caused somewhat high to very high amounts of stress to their daily lives.
Companies strive to help employees live better lives and become less stressed. This goal means that financial wellness needs to be a key factor for employers to help support employees having longer, healthier lives. Let’s face it. When people are less stressed about their finances, they live happier lives and lifestyles.
Employers should look out for these three financial wellness trends in 2021:
- Financial wellness programs are key
Financial wellness programs show closely linked behavioral changes in attitude, behavior, and confidence in the past. In the future—people’s relationships with money change when financial solutions are offered through an employer. According to Morgan Stanley and the Financial Health Network, 75% of employees felt it was a significant benefit, and 60% would be more inclined to stay at a company that offered financial solutions.
2. Digital solutions and personalization for financial planning
Financial goals look different for everyone, so creating personalized plans to achieve these goals is an important trend in 2021. This personalization helps people stay accountable and creates successful financial programs. Digital personalization solutions can involve budget planners, loan repayment calculators, and much more. Additionally, digital and data personalization can include savings and habits tracking and providing scores to see if they improve savings and debt.
3. Increased focus on student loan repayment and affordable education
Higher education costs are challenges that many people struggle with. Today, people’s salaries do not match the price that higher education and student loan repayment match. Education is setting employees back before they can get ahead financially, which increases stress and decreases opportunity amongst HR. Companies need to increase the focus of higher education and take the initiative to help employees strategize ways to pay off loans as quickly as possible.
Financial stress is a common factor nowadays. This type of stress is one of the most significant stressors among people. Still, companies can do their part and provide the resources to help employees increase productivity, engagement levels, and happiness around their daily life.