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Why You Should Care About Your Employees’ Financial Well-Being

by on Dec 10, 2020, 08:10 AM

Why You Should Care About Your Employees’ Financial Well-Being

When employers create benefits packages, they often think of healthcare, pensions and vacation days. While these things are essential, there’s one aspect of employee welfare that’s often overlooked — financial well-being. This is often missing from the conversation, but financial health is integral to overall health. Here’s why you should make your employees’ financial well-being a priority, for the sake of them and your organization.

What Is Financial Well-Being?

According to Gallup, there are five central aspects of overall well-being: career, social, physical, community and financial. When people feel secure in their personal finances, they also tend to be less stressed and healthier in general. They are better at problem-solving, adapting to change and generally doing their jobs. On the other hand, financial problems can cause undue stress and become a distraction.

According to a 2019 report by the Consumer Financial Protection Bureau, 18% of adults in the US scored low or very low on measures of financial well-being, indicating “frequent financial struggles and material hardship.” This figure varies significantly by state, but does point to a nationwide problem that employers can help alleviate.

Why Is Employee Financial Well-Being Important?

When employees are worried about their credit score, or any outstanding debt or unexpected expenses, their mental health can take a hit. This can lead to poor concentration and a lack of productivity, which can then impact your business. As an employer, you should always have your employees’ well-being at heart, so don’t overlook the financial side of their lives. Providing your team with the tools to support their financial well-being can make a big difference to both your company culture and their productivity output.

When Should You Run Financial Background Checks?

A financial background check, or consumer credit report, is a common pre-employment practice. This is especially important when hiring for roles directly related to handling finances, but can prove useful in other roles as well. Running a financial background check on potential employees could be a good idea to ensure the financial well-being of your workforce. If a candidate experiences issues with their credit, they may be stressed or distracted in the workplace and may not be able to carry out their duties. However, for an otherwise strong candidate or for a current employee, a financial background check could also provide insight into how you as an employer can support them with financial planning tools. 

How To Provide Better Financial Health Tools To Your Employees

Providing user-friendly financial health tools as part of your benefits package could make a world of difference to your business. ScoreMaster is a great option to take the guesswork out of financial matters, and to empower your employees to take charge of their finances. It helps them find work-life balance, and feel less stressed and happier with their job. 

Thanks to its easy-to-use, gamified interface, ScoreMaster will educate your employees on how to reach their best credit score. It will also help them better understand their spending impact and protect them against identity fraud. As part of the ScoreMaster employee plan, each employee and their family are covered for up to $1 million dollars in fraud insurance, which will afford them (and you) greater peace of mind. It’s fun, fast and simple to use, and it will help set your employees up for financial success.

Actively improving the financial well-being of your employees by including financial health tools in your benefits package will not only boost their morale, but also their productivity. Getting on top of our finances is an essential tenet of overall well-being and will benefit both employer and employee. 

References:

  1. https://www.gallup.com/workplace/267152/financial-wellbeing-pays-off.aspx 
  2. https://files.consumerfinance.gov/f/documents/201911_cfpb_fwb-state-report.pdf 
  3. https://www.moneyandmentalhealth.org/financial-wellbeing-at-work/ 
  4. https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/conductingbackgroundinvestigations.aspx