30 June 2021
A recent survey by the National Foundation for Credit Counseling found that only 5 percent of people struggling with debt reported having a job. In comparison, 89 percent said they were unemployed or had a part-time job. This is not surprising, according to business, finance, and banking experts. Essentially, employers are abandoning their employees financially as they become more independent due to technology. Therefore, financial wellness for employers is an important topic that needs to be discussed to ensure that workers have enough money throughout their jobs and focus on other aspects of life (like spending time with family).
Financial wellness is about making good business decisions that maximize profits and minimize losses while maintaining a healthy work culture. It’s about bringing the company along for the ride and investing in yourself at the same time. For a person or organization to maintain good health, they must pay attention to what they eat, how much exercise they get, and how much stress they’re under. The same is true for businesses, and financial wellness takes this into account. To be successful in business, you need to know how to think like a private equity firm or a public company. In addition, you need to know how to approach financial decisions by understanding the elements of financial wellness and how they apply to your specific situation.
Financial wellness is all about a business’s ability to:
• Manage its debt;
• Create wealth; and
• Make growth choices.
One of the most critical aspects of a company’s success is getting and keeping employees in good financial shape. This is why many employers offer financial wellness programs. In addition, employers provide tax-advantaged benefits, such as health insurance, retirement plans, or even paid leave for sickness or a new baby. However, not all employers can afford these benefits. The employee may be self-employed or have limited resources that they’re required to manage on their own.
For this, it’s essential to indulge in Financial Wellness programs. Financial wellness programs benefit both employees and employers. For example, suppose an employer’s financial wellness program helped the employee control their finances. In that case, it could help the employer reduce health insurance costs, liability issues, and even employee turnover. Workplace financial wellness programs can help employees understand all aspects of their finances, such as debt relief, savings, and retirement planning. These programs can also help educate them about how to avoid fraud and theft.
Employers who cannot provide much financial support may provide some tax savings incentives for participating in a Financial Wellness Program. If an employer provides educational resources online or via classroom presentations, participants will feel more in control of their finances. In addition, the financial wellness program can help employees figure out which credit cards, loan loans, or other critical financial tools to use.
Financial wellness programs are an excellent way for employers to avoid a federal fine. It gives employees an incentive to get in shape when it comes to their finances. The Department of Labor recognizes that most individuals are not financially ready and need better assistance from their employers.
Financial Wellness Programs allow employers to learn from successful companies with the most efficient employee training they can offer. They want employees to manage their money well, so they don’t get fined by the government for not providing these benefits. In addition, it helps educate employees on what to do with their money and shows them how to prevent fraud and theft.
Employers also can save a lot of money by using the Financial Wellness Program as the employer is not required to provide benefits or insurance, which would be part of employee’s compensation anyway. Therefore, an employer can save hundreds of dollars per year by offering a few benefits that an employee needs so much. The employer would need to take the initiative to provide a workplace safety tip sheet, online classes, and small bonuses for employees responsible for their financial well-being. This ensures that employers don’t get fined by the government for not providing these benefits. It also gives employees an incentive to learn more about their finances as they will be motivated to get in shape.
Financial wellness is an increasingly important factor in any organization today. Unfortunately, with a digital, globalized economy, it’s too easy for employees to get distracted, mismanage their finances, and take unnecessary risks. If you go through the EarlySalary tools and find them helpful, we’ll offer you discounts on our products and services that can help you manage your money, make informed choices about your career and keep your stress levels under control. We think you’ll find that EarlySalary is a great place to get started on the road to financial wellness.
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