Monday, July 13, 2020

Are You Feeling (Financially) Well?

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Are You Feeling (Financially) Well?

You may be physically healthy, but how is your financial well-being? Employers are discovering that they can save money by helping their employees reduce their stress regarding finances.

According to an article on the website of Employee Benefit News titled, “Employers must partner with employees to fight financial stress,” a study by Financial Finesse found that if an employee has significant financial stress or difficulty maintaining their finances, it costs their employer money in terms of being absent, having their wages garnished, and delaying retirement. Furthermore, employees who didn’t have their finances under control were likely to take more unplanned days off versus those with better financial stability, according to the study.

Financial stress is no different when it comes to a person’s health. Even something as simple as an unexpected parking ticket can be disruptive and trigger worry. This worry manifests itself in the employee being truly sick or distracted enough at work so as to reduce productivity.

While it’s easy to see how absenteeism or reduced productivity can cost a company money, the other financial stress factors may not be so easy to identify as a cause of a company’s financial drain. But according to the study, little things add up such as the costs and time spent to process garnished wages.

So, what can employers do to help their employees with their finances? Plenty. They can provide education and seminars on personal finance, investing, and retirement planning. For employees who are really in a financial hole, they can provide one-on-one counseling. Not to leave out employees who are doing well with their finances, an employer can provide asset allocation strategies and risk tolerance assessments.

When employees have little to no financial stress, they perform better, have lower health care costs, and retire on time.  All this helps their employer save money, too.

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