PwC research shows, “More than half of employees say they’d be attracted to a company that cares about financial wellness. Versus their current employer.” This has never been truer than right now. If there is anything to take away in the workplace, it is knowing exactly what your worth and value are to the company you are working for. As employees, we remain optimistic about how well our own employer takes care of our financial wellness. Donnebra McClendon who is a Global Head of Diversity, Equity, and Inclusion at Ceridian describes in great detail what she learned during her childhood while being around her father as he handled finances for their household: the importance of a consistent saving routine, spending only what is necessary, creating a sustainable payoff debt method and understanding why budgeting is a lifeline.
These concepts are often overlooked when we focus on the here and now rather than looking at the bigger financial picture. Our workforce demographics are changing, and the pandemic has played a major role in the current shift we see today. Employees are job-hopping continuously, and showing no signs of stopping. This practice has caused employers to take a hard look at how to better help their employees feel financially secure and incentivized to stay engaged at work.
2. Fair and Accessible:
Everyone should have equal access to credit. In the past, many employees have not been given an equal opportunity to fair access to beneficial financial resources. There is a discrepancy among minority employees within companies. The government data is clear, “5.4 percent of U.S. households were unbanked in 2019, almost 14 percent of Black households and 12 percent of Hispanic households were unbanked.” Barriers within the workforce and even in the corporate world create a depressive dynamic that does not allow for financial growth and sharing of knowledge. Although research has served its purpose in bringing many problems to light, companies now are noticing and taking action. According to McClendon, companies are now beginning to bring in “on-demand pay” that allows their employees access to earned wages. Employees are now obtaining benefits that were ignored by their employers. Employer research shows, “Four in five U.S. workers (83 percent) between the ages of 18-44 believe they should have access to their earned wages at the end of each workday/shift, before the traditional payday."
These concepts are often overlooked when we focus on the here and now rather than looking at the bigger financial picture. Our workforce demographics are changing, and the pandemic has played a major role in the current shift we see today. Employees are job-hopping continuously, and showing no signs of stopping. This practice has caused employers to take a hard look at how to better help their employees feel financially secure and incentivized to stay engaged at work.
The following are three primary focal points on how to successfully deliver a financial wellness plan to your employees:
1. Balance:
Equal Pay Day has been a referendum on the system of U.S. pay. It is a day that we recognize pay disparities across the country among women and people of color. For so long, women have been grossly behind in terms of pay in contrast to their counterparts. However, this does continue to improve with more awareness and attention to the issue. McClendon discussed her own company’s findings when analyzing pay disparity. “Less than a 1 percent disparity between what women and men earn globally at Ceridian, and less than 1 percent disparity between what white and non-white employees earn in the U.S.” Companies must close the divide between women and people of color with pay. This gives everyone in the workplace the clearest and fairest capabilities to earn more and lose less. Companies today want to implement fair equity policies with pay to help secure their employees’ financial wellness.
2. Fair and Accessible:
3. Financial Comprehension Plan:
Financial literacy is single-handedly the most fundamental concept to empower employees with. From an employer's point of view, this needs to be introduced at the beginning of employee onboarding. PwC research shows, “A full 87 percent of employees want help with personal finances.” Most employees want access to financial guidance and assistance. Financial knowledge distribution is essential to keep employees engaged in the company and prevent job-hopping. Employees do not want to stay with a company that does not offer a financial literacy & wellness program. Just look at how often employees change jobs to find better financial alternatives.
As employees, we must do the research on our own and know what kind of financial resources are available to us. The importance of knowing how to plan our finances is the key to being satisfied with our savings and spending. We as employees are more engaged with our companies when our financial wellness needs are being met.
Financial wellness should never be downplayed. Companies can educate employees in key financial aspects by bringing more pay equity, access, and literacy resources to keep employees engaged and loyal.
If you want more information, be sure to check out our amazing tools on the Financially Fit Employees website or mobile app to stay up to date on your financial wellness journey.
Here to help,
Your Financially Fit Team
No comments:
Post a Comment