Employee debt affects the workplace: Rolling out the right financial wellness solutions

Debt is like fat. It is easy to add and very difficult to take off. Being in debt may sound like a personal issue, something employees might feel the company was intrusive if it wanted to address. Companies know employees in difficult financial circumstances can do things damaging to the firm, like embezzling or selling confidential information. Addressing employee debt can lead to happier employees who will hang up when competitors come calling to hire them away.

Helping employees manage debt is one aspect of financial wellness. Here is the good news:  First, there is a need: A survey by Bank of America shows 62% of employees are stressed about finances. 91% of employers see higher employee satisfaction when they offer help in managing well-being.

Second, employees want this help. The Bank of America study found 80% of employees felt the company should be playing a role helping with financial wellness. In a study by Talent LMS, “Financial Wellness in the Workplace” 73% of employees who get it when available feel it makes them more safe and secure. The numbers make a good case:  Job satisfaction is at 83% for those receiving guidance vs. 63% for those who did not get it.