Understanding Employee Financial Wellness
Financial stress has a negative impact on employees’ performance. Having financial wellness programs, such as an employee loan program, can help in reducing employee stress levels and promoting productivity.
Employee Financial Wellness
Financial wellness refers to the overall health and well0being of a person’s finances. Employees are able to pay their debts, and they have ample emergency and retirement funds. They are also prepared to handle any financial crisis or stress related to financial issues.
Financial health is perceived to be the responsibility of the individual –however, employers can extend a helping hand to reduce their employees’ financial stress. One of the best ways to do that is by offering financial wellness programs such as an employee loan program.
Financial Stress
Generally, financial health is ideal for employees. It allows them to pay their daily expenses, monthly bills, and annual financial obligations. It also affords them –the to build an emergency fund or save money for special events and –plan for other financial expenses in the future like retirement.
However, many employees aren’t able to enjoy financial health. In fact, a 2021 PwC survey showed that about 63% of employees say that they saw an increase in their financial stress since the [pandemic started. That is especially true for lower-income workers.
What is an employee loan program?
An employee loan program refers to a loan or an advanced by an employer to assist an employee with emergency funding. The loan generally has an affordable interest rate and a set repayment schedule.
How is The Program beneficial to Employees?
Employee loans can help to alleviate financial stress experienced by employees and is also beneficial to the organization.
Here are some other ways in which the program can help:
- Having an employee wellness program help increase the productivity of staff members because they will no longer have to worry about certain financial problems.
- It can boost employee morale.
- It can help build loyalty and reduce turnover among employees.
- Provide a sense of belonging for employees because the company has expressed a desire to assist them.
- It can enhance the reputation of the company, as an organization that cares about its workers.
While an employee loan program is an excellent tool for financial wellness, it’s important to ensure that your company offers the best employee loan available.
If you are looking to add this type of benefit to your employee wellness package, consider partnering with us.
We understand that your employees are your biggest asset and, we will ensure your workers will get innovative, accessible, and hassle-free loans. Contact us to learn more.
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