Culture drives success. Organizations with a positive company culture have employees who are engaged, productive, and less likely to accept a position elsewhere. However, employee financial stress can gradually erode even the strongest company cultures.

The business (and moral) case for supporting employees with their financial well-being has never been greater. By creating a workplace where it’s acceptable to discuss the issue of financial well-being, you’re investing in both the success of your employees and your business. 

In this article, we’ll explore why it’s time to talk to your employees about their finances and get intentional about giving them the tools needed to support them.

The Impact of Financial Wellness on Company Culture

The rising cost of living has highlighted the issue of financial well-being, and it’s a subject business leaders can no longer afford to ignore. To understand how financial stress can negatively affect your employees’ lives, let’s consider these facts:

• Financial well-being is a stressor for 70% of Americans.
• Most Americans are living paycheck to paycheck.
• Fewer than half of U.S. adults have an emergency fund.
• Personal financial insecurity has inevitable knock-on effects on the workplace. When employees worry about their finances, they lose focus.
• 66% of employees agree financial stress negatively affects their work and personal life.
• Over 83% of human resource leaders worry employees’ financial issues could impact productivity.

There’s an unspoken belief that financial struggles reflect personal failure, which leads people to internalize their problems and avoid open discussions, especially in the workplace. Responsible, compassionate employers must recognize that current economic conditions are putting enormous pressure on their people.

Why it Matters

Employers that fail to respond to the financial well-being needs of their employees will see their company culture and bottom line suffer. A recent Morgan Stanley at Work study revealed that 89% of employees would be more invested in staying at their company if it provided financial benefits that met their needs. 90% of human resource leaders are worried that employees will leave if their company doesn’t provide benefits that meet their financial wellness needs.

Tools for Creating Financial Safe Spaces

Here are some easy-to-implement strategies to create safe spaces where employees can discuss and improve their financial situations without feeling judged or shamed.

Financial Education and Resources

Introduce free workshops, seminars, and online/mobile resources that provide your workers with financial education on budgeting, debt management, saving, and investing.

Financial Incentives

Set financial incentives tied to employees’ performance or wellness goals, such as bonuses or rewards for achieving financial milestones or participating in your complimentary financial education programs.

Earned Wage Access (EWA)

Consider partnering with an on-demand pay services provider that allows employees to access their earned wages before payday. EWA allows employees to manage their income on their terms and provides a dignified solution to anyone suddenly confronted with an emergency expense.

The Role of Leadership in Promoting Financial Wellness

Leaders are responsible for taking an active, personal role in building their workforce’s financial resilience and helping employees work toward a point where they’re financially stable and thriving. Here are some steps to operationalizing your involvement with your teams:

Initiate the Conversation

If you want your employees to feel comfortable talking about money at work, someone needs to ignite the conversation — ideally, that should be someone at the top! Speak directly to your employees about your commitment to building their financial well-being and what the company is doing to help them succeed.

Listen

When crafting your financial wellness programs, remember that not every employee has the same needs. Don’t underestimate the importance of listening to your people to determine the best solution. Be relentlessly focused on getting feedback from your people to validate what you’re doing is working and understand what else they may need from you to succeed.

Get Involved

Demonstrate your support for your HR team’s financial well-being initiatives by joining events, participating in conversations, or simply talking about their great work.

Keep Communicating

Use your internal communication channels to ensure that all employees know the full range of financial wellness benefits available to them, including online tools, employee discounts, earned wage access, and any other financial perks that help relieve some of their financial stressors.

Take the Long View

Supporting your employees’ financial well-being is an ongoing process. Be prepared to stay on the course and commit to a long-term strategy of fostering a culture that promotes your workforce’s financial literacy and stability.

In this Together

When it comes to financial stress, your employees need to feel that they’re not alone and that it’s OK to have open, honest conversations about their money worries. Whatever solutions you choose, the goal is to empower your people on their financial journeys, helping them achieve long-term financial stability and success. And if their financial wellness gives your company culture and profits a boost at the same time, it’s a win-win outcome.

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