Benefits packages have long been used to attract talent from other companies and to keep current employees from leaving. Over the years, employers have tried to stay ahead of each other by offering new perks. For companies trying to keep up with others while also remaining profitable, it’s fair to ask if certain program benefits are worth it. When it comes to corporate wellness programs, they do more than just benefit employees.
Years ago, a company might have thought paying their employees was all they had to do to provide financial wellness. Contrary to this belief, employers that now offer in-depth financial wellness programs are experiencing direct positive impacts. Below, Mentoro’s president, Whitney Queen, provides insight into the benefits of providing money mentorship resources to employees.
Benefits of Employee Wellness Programs
“Having a competitive benefits package can significantly impact a company’s ability to attract and retain employees,” says Whitney. “A recent survey from Glassdoor showed that 60% of employees consider benefits and perks a major reason in choosing one company over another.”
There’s been a major push to offer financial wellness programs. According to Whitney, that trend has multiple factors, but two big ones are:
- Programs like Mentoro are still relatively new in the space. Offering a comprehensive financial program puts a company at the forefront of workplace wellness and shows that they’re culturally aware.
- Employees are increasingly acknowledging that they want financial guidance. A John Hancock survey found that 73% of employees would seek advice on retirement planning—up from two-thirds in 2019. And 63% would seek out investment advice— compared to 50% last year.
Financial Wellness Programs Can Fight Turnover, Absenteeism, & Financial Stress
Employees have been experiencing increased levels of stress since 2020 and it’s affecting their ability to work. According to the same John Hancock survey, 62% of employees are financially stressed, versus 39% before the pandemic. Also, 43% of workers spend work time dealing with personal finances and 50% said they’d be more productive without their current financial worries.
“Employees who are overstressed miss an average of 3.5 days a year. When you take the statistics and scale them to fit mid to large companies, that leads to a huge loss,” says Whitney. “With Mentoro, employees receive the help they need to solve their biggest financial stressors, which leads to fewer days missed and increased productivity.”
“One of our clients in the telecommunications space was experiencing a high rate of turnover. Their biggest issue was hourly employees leaving for a rival because they offered a slight bump in pay,” says Whitney. “By using Mentoro and our educational program, the company successfully communicated that with the free benefits that they offered – financial wellness being one of them – the cost-benefit of moving was negligible.”
Dealing with turnover can come at an incredible cost to companies. There’s the direct money spent on job postings and recruiters, which can easily pass $4,000. But it’s not always what you’re spending, it’s also what you’re losing. Considering the average job posting takes 52 days to fill, the work that the role is supposed to carry out has to be spread out or put on hold.
Education and Employee Wellness Programs
The old way of handling benefits was to hand over a guide and put the responsibility on the employee. Now, companies can establish a parental-type role to explain how the benefits can be used to help employees live a more stable and healthier financial life.
“We’re not taught the basics in school, let alone what it means to have a high versus a low deductible. Everyone is just expected to know everything, and instead of asking questions most of us just go status quo through life,” says Whitney. “An example would be an employee’s 401(k). Without an educational platform in place, we’ve seen employees request hardship withdrawals or loans against their account, and the company grants it without question.”
Mentoro sets up a “triage” program instead. If an individual wants to take money from their 401(k), they must have a one-on-one with an Educator before they can complete the paperwork. They’ll report back to the company on the circumstances and will make a recommendation on what the employee actually needs and how the company can handle the situation.
Corporate Benefits of Healthy Employees
“Tech firms have been more at the forefront of this financial wellness technology, but it’s built for any industry, everything from non-profits to municipalities and school districts,” says Whitney. “School teachers are sort of in the wild wild west with their retirement options, and we’ve seen that educators are great financial students.”
With employees eager to learn and improve their financial situation, companies should use that to their advantage and benefit from reduced healthcare costs, increased productivity, and greater retention rates. If you’re interested in learning about how Mentoro can be an asset to you and your employees, schedule a demo!