Employers are becoming aware of the potential impact that pooremployee financial health can have on their business. It impactsproductivity, retention, and employee health — which in turnaffects the company's bottom line. To address this issue, employersneed to offer benefits that take a holistic approach to supportingtheir employees' financial wellness.


Employee financial health – it's a shaky situation

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

  • 41 percent of U.S. adults employed full time don't have aplanned 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 makingsound financial decisions. Consequently, they report that they havetrouble meeting monthly expenses and making minimum payments oncredit cards. They also report not being able to make majornecessary 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 financialstress is how it affects employee productivity. In December 2015, aHarris Poll conducted on behalf of Purchasing Power showed that 37percent of employees deal with their finances at work. Of those, 34percent spend 2 to 3 hours per week on this. That means they'respending time on the clock dealing with creditors or balancingtheir budget – not focusing on their work.


How employers can address the issue

The ever-growing voluntary benefits landscape offers employers avaluable tool for combatting employee financial issues. Some of theavailable programs include:

  • Online financial education resources

  • Non-profit financial counseling services

  • Value-add resources from their current benefit providers, suchas the financial wellness platform that Purchasing Power offerscustomers

Other programs are available to help employees with theirshort-term financial needs, including employee purchase programs,discount programs, and short-term loans. Employers who offer thesekinds of programs can create a workforce that is financiallyhealthier – which can help boost the bottom line.


To learn more about the current state of employee financialhealth and how companies can navigate through it, download our fullreport, “An Employee Crisis: Financial Literacy.”

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