Financial problems aren’t just distracting; the stress can physiologically affect employee reasoning abilities and productivity. Explore what you, as an employer, can do to make a difference.
This article is part of our Wellness in the workforce content series, focusing on the mental health of employees. Explore how you can make a difference—through work experiences, financial education, and access to benefits.
The top contributors to worsening employee mental health aren’t exclusively clinical. According to Principal® research, they’re financial—including inflation/rising costs of living and concerns about personal financial situations.
Stress isn’t just distracting. It makes it physiologically harder to be discerning and analytical. Or, in many cases, to work.
The right benefits can make all the difference.
“With benefits, what you’re really giving employees is the freedom to engage at work and more freedom to not be stressed out about what’s happening in their personal lives,” says Amy Friedrich, president of Benefits and Protection. “That financial security helps them feel valued, so they’re more engaged and can think more clearly and creatively.”
Top benefits employees want their employers to add
- Retirement benefits
- Health insurance
- Mental health benefits
- Paid family/medical leave
- Dental insurance
Sri Reddy, senior vice president of Retirement and Income Solutions, says businesses can be more intentional about cultivating a workplace where people feel stable and secure.
“My wholehearted belief is that if you want to focus on getting the best out of your people,” he says, “you create an environment where you remove worries, whether it’s health and wellness worries or—equally as important—financial worries.”
55%
More than half of employees are concerned about reaching or maintaining financial security.
33%
One-third of employers plan on adding or increasing financial wellness program benefits within the year.
How to foster financial confidence through education
Financial wellness means much more than an employee’s paycheck.
“Financial wellness is also about providing education, awareness, and guidance, so employees can make the most of their own financial situation, take control, and be in the best possible position,” Reddy says.
Where do you start?
Employees say they want these top subject areas covered in an employer-sponsored financial wellness program.
88%
Saving for retirement
68%
Insurance (life, disability, long-term care, etc.)
66%
Debt reduction
61%
Budgeting
54%
Credit resources
54%
Homeownership
What’s next?
Visit our small business resource center for additional content, webinars, and tools. Or contact a Principal financial professional to work through your business needs one on one.
