Employers are becoming aware of the potential impact that poor employee financial health can have on their business. It impacts productivity, retention, and employee health — which in turn affects the company's bottom line. To address this issue, employers need to offer benefits that take a holistic approach to supporting their employees' financial wellness.

Employee financial health – it's a shaky situation

How employees are handling their finances indicates that many of them are in a precarious financial position. In March of this year, a Harris Poll conducted on behalf of Purchasing Power showed that of U.S. adults employed full-time:

• 41 percent of U.S. adults employed full time don't have a planned monthly budget

• Of those who have a monthly budget, one out of four (26 percent) doesn't put anything into savings each month

Without a monthly budget, employees most likely aren't making sound financial decisions. Consequently, they report that they have trouble meeting monthly expenses and making minimum payments on credit cards. They also report not being able to make major necessary purchases, and don't have money saved for emergencies. All this leads to employee financial stress.

The ripple effect on employers

One of the most concerning side effects of employee financial stress is how it affects employee productivity. In December 2015, a Harris Poll conducted on behalf of Purchasing Power showed that 37 percent of employees deal with their finances at work. Of those, 34 percent spend 2 to 3 hours per week on this. That means they're spending time on the clock dealing with creditors or balancing their budget – not focusing on their work.