Wellness programs have become a standard for organizations today–which is great news for employees–but they often focus on things like nutrition and fitness, work-from-home allowances, and mental health support. Often important elements like financial well-being, that can have a significant impact on an employee’s mental health, are overlooked.
It’s been said that “a company is only as good as its people.” So what are business leaders doing to enable their people to thrive –not only professionally, but also mentally, emotionally and financially? We know that the relationship between finances and wellness can’t be overlooked, especially when PwC’s 2023 Employee Financial Wellness Survey found that 57% of employees feel that finances are the top cause of stress in their lives. And 55% reported that in the past year, financial stress and money worries have had a negative impact on their mental health.
On this World Mental Health Day, it’s more important than ever to shine a light on the many aspects of employee well-being and what we can do to help support their experience. So what can and should be done?
Why Organizations Should Care
For starters, these two factors are critical for an organization’s long-term success:
- Productivity: Financial stress and associated mental health challenges affect not only how employees work, but—at times—if they work at all. One-in-three surveyed shared that personal financial pressures have a negative impact on their productivity at work. And an estimated 56% of financially stressed employees said they spend at least three hours per week at work dealing with those issues, rather than working.
- Retention: It’s no secret that high turnover is bad for business. The study also found that the financially-stressed are twice as likely to search for a new job when compared to non-financially stressed employees. And more, close to 75% say they would rather leave for a company that “cares more about their financial well-being.”
In 2012, half of employees with access to employer-provided financial wellness services reported using such benefits. And while a decade later that number has grown to 68%, the message is clear that organizations need to do more to support their employee’s financial health as part of their overall well-being and ultimately, the success of their business.
What Employers Can Do
Nearly three-quarters of employees surveyed expressed a real desire for financial guidance, proving that employees are more open to discussing their financial issues, thus giving employers an opportunity to adapt to their employee’s needs and offer valuable resources.
To provide this level of support, employers can implement programs such as financial coaching. They can and should include everything from information on financial literacy and counseling to planning assistance, savings programs, and debt mitigation strategies. One-on-one support with a specialist, including the option for regular check-ins to support financial wellness throughout employee careers, is also a huge plus.
Another opportunity is to support student-loan assistance for employees, which we know is a growing burden for graduates. At PwC, we launched our student loan benefit in 2016 that pays $1,200 a year for up to six years to help associates and senior associates pay down their student loans.
As of March 2023, the benefit has helped pay off just over $59 million of student debt for almost 24,000 employees. And we’ve heard directly from our people the impact it has made, as PwCer Julie Schenck in Consulting Solutions, shared that “participating in PwC’s student loan paydown program gave me more financial freedom to do more of what I loved outside of work. It also allowed me to feel stable enough to purchase my own home.”
In today’s face-paced world, helping individuals readily find and access resources to improve their financial health is just as important as offering the benefits. At PwC, we’ve found that our people want a personalized, tech-enabled experience that meets their needs at different stages of their careers and life at the firm. This might look like: using our medical expense calculator to forecast their health coverage, speaking with their personally assigned “benefits pro” to help them better understand their health and retirement plan benefits, or utilizing the firm’s 1:1 financial coaching to help them reach their financial goals. Our people appreciate the ability to easily filter through the resources on their own and talk with a professional, live, to find the resources that are right for them and their families. By prioritizing accessibility alongside the benefits themselves, organizations can empower individuals to take control of their financial futures. These are the types of tools and resources that make navigating financial wellness a leading practice.
Recognizing the impact on employees, personalizing your offerings, and creating a holistic approach that values long term financial wellness as much as mental, spiritual and physical, is what matters most. As the maxim goes, “financial health is not a sprint; it’s a marathon.”
DeAnne Aussem, Managing Director and the Well-being Leader for PwC US and Mexico is a recognized, dynamic and forward-thinking business leader committed to fostering positive workplace cultures that prioritize well-being, inclusivity and belonging through purpose-driven leadership. As a credentialed executive coach, dedicated advocate for well-being and a seasoned expert in leadership, she draws upon more than 25 years of professional services experience empowering individuals, teams and organizations to thrive across the US and globally. This makes DeAnne a trusted voice and source of strategic insight on today’s most difficult leadership challenges and initiatives to help champion a human-centered and tech-powered future of work.