Finance is one of the biggest drivers of stressors in the workplace and admittedly one of the factors that determine employee engagement and productivity. Since the coronavirus pandemic hit the globe, financial stress remains an important conversation in the workplace, one which has had a major impact on the corporate shifts the workplace has experienced this year.
The Stress in America 2020 Survey by the American Psychological Association revealed that 64% of American adults say money was one of their biggest stressors, while 44% of employees noted that they were often distracted in the workplace because of their financial worries. The pandemic no doubt heightened this burden as about 67% of Americans had to push back their intended retirement dates in response to the pandemic.
Financial stress is a huge component of workplace wellness as it is closely linked to mental and physical well-being. Poor financial habits or circumstances culminate in mental stress and poor healthcare outcomes. These, in turn, contract employee engagement and productivity. Therefore, employees need to refocus wellness strategies to improve financial well-being, as a function of overall wellness.
One important strategy HR managers and business leaders can adopt to improve employee financial wellness in the ever-evolving corporate landscape is to leverage digital solutions and financial tech (fintech) products that are available on the market to improve money management skills.
Some of the applications of technology to rebuilding employee financial well-being include:
Improve financial literacy
Digital solutions offer a large pool of resources on financial management that employers and employees can access. This large volume of resources offers employees round-the-clock access to financial knowledge without having to travel miles to listen to an expert. What’s more, employers can also leverage tech platforms, such as virtual meeting platforms, to host webinars and seminars on basic money management to improve employees’ money-handling habits.
Business leaders may also invest in financial well-being portals that pool resources and various elements to improve financial education for their workers. Employers can also deliver financial training courses through these portals, which offer the privacy that workshops or seminars may not offer.
These courses run through the basics of personal finance, including financial planning, managing debt, loans and credit card advice, investment risks, and skills to navigate evolving economic conditions and rising inflation. Employers may also help workers understand their workplace financial benefits and other incentives via digital platforms.
Basic money management tools
HR managers can leverage personalized, AI-driven financial planning tools to help workers manage their daily finances. These tools are integrated with machine learning models that help users track spending, manage debt, and build their savings.
Some of these digital tools also offer personalized financial planning based on the volume of financial data collected from mobile applications and the user’s personal information, including career goals and age. Employees may also utilize app-based banking, some of which also help with budgeting and offering real-time analysis and guidance on savings, spending, and investments.
Business owners may also need to make it easier for employees to access financial support and funds by automating and simplifying the process. This allows employees to access emergency funds through a secure digital framework in place of enormous paperwork and red tape.
Virtual financial support
Integrating technology into financial well-being means employees can easily access financial support via digital models. To supplement digital platforms and money management tools, employees may be able to readily access financial experts via a virtual consultation on live text or video chats or other AI-based chat models when they need it.
Employees could also receive support in the form of virtual financial coaching sessions to deal with everyday financial concerns. Tech models also avail employees access to mental health support through employee assistance programs to supplement other financial benefits for employees dealing with tough financial situations.
Benefits of digital integration into financial well-being programs
Adopting tech solutions to deliver financial wellness initiatives benefits both employers and employees. One key benefit of this is improved employee engagement and productivity. When employees perceive their managers and employers to be taking steps to help them solve their financial concerns, they become more responsive and productive.
However, another key importance of digital financial solutions is the large volume of data they make available. These data could help employers and tech providers curate targeted, personalized, and actionable solutions for each user, instead of generic one-size-fits-all financial initiatives.
With these data, employers better understand where employees are in their financial journeys and what solutions they would benefit most from. The data from financial wellness solutions give insight into employee behavior and overall financial health, and what employee benefits would improve their financial health considerably.
GHA For Business
Essentially, leveraging digital financial solutions is a sure way to improve employee financial health. Tech platforms harvest large volumes of vital data that could help employers identify employee financial pain points and offer individualized solutions. Now more than ever, business leaders and managers need to adopt these tech initiatives to optimize workplace benefits to help workers effectively navigate the uncertain and changing economic climate.
Global Healthcare Accreditation (GHA) for Business offers organizations and business leaders the requisite tools to standout in the post-pandemic era of work. GHA For Business offers employers the tools, and resources they require to remodel their wellness offerings to meet employee wellness needs. The accreditation demonstrates to employees and potential clients that employers are committed to building a healthy workforce, leveraging concrete programs to help employees in all aspects of wellness and health.