Tribal Nation employers who want to maximize productivity, loyalty, morale and profits need to see their employees as more than just task performers. With the pressure to exceed company goals and continually innovate, businesses can lose sight that their employees are real people with real feelings, struggles and needs inside and outside of the workplace.
For employees at all income levels, money is the number one source of stress.1 Financial anxiety outranks worries caused by health, work and family issues. In fact, 60% of full-time workers are stressed about their finances, which is a slight increase from those who felt financially frazzled during the pandemic.2
Such stress goes beyond bank balances and bills: It also has a negative effect on a person’s physical and mental health, impacting such things as blood pressure, ability to concentrate, sleep, relationships and self-esteem. Employees with money woes tend to be more distracted and less engaged at work. They are nine times more likely to be difficult with coworkers and twice as likely to be job hunting.3
So, why should Tribal businesses care about the financial wellness of their employees? Because it disrupts more than just work culture – it can wreak havoc with a company’s bottom line. Costs associated with declining productivity, rising turnover rates, recruiting and retaining difficulties, postponing retirements and increasing HR workloads for onboarding and training can be substantial hits to a company’s net profit.
To ensure a steadfast team and curb the negative effects of employee money matters, consider developing a financial wellness program. Studies show that it’s in demand: 74% of workers say they want help with personal finances,4 while 60% say they are more likely to remain with an employer that offers a money management program for them.5 The flipside is 73% of financially stressed employees admitted they would be attracted to another employer that cares more about their financial wellbeing.6
3 Ways a Financial Wellness Program Helps
- It drives down the cost of turnover. Losing employees is an expensive proposition: While estimates vary depending on industry, the average cost of hiring a full-time employee is about $4,700.7 That number increases significantly if hiring temporary workers and paying overtime are needed to fill gaps left by employee vacancies. There are also the costs involved with job training (about $954 per learner8), lost institutional knowledge and experience, and the time it takes to reach full productivity with a new employee.
Given the high cost of revolving doors from turnover and training, it is in a company’s best interest to help improve employee financial wellbeing. Consider personalizing financial wellness benefits to an employee’s life and career stage, such as student loan debt management for younger workers and retirement planning for older ones.
Also, focus on the immediate financial concerns employees are dealing with, because it’s difficult to think about long-term goals when day-to-day money issues are chaotic.
- Financial wellness decreases stress and boosts morale. Money worries do far more than increase turnover: Almost half of financially stressed employees say it has had a negative impact on their mental health, especially in Tribal communities where there is already a disproportionately higher number of mental health issues than the rest of the U.S. population.9
Given the connection between financial wellness and mental health, employers should consider offering financial coaching alongside mental health resources. Connect with workers where they are comfortable — employees are more likely to respond to one-on-one financial coaching via phone or video chat because of the personal and confidential nature of their money issues.
By taking a preventative vs. reactive approach to financial wellness and mental health, employers can:
- Create a stigma-free culture of acceptance.
- Avoid lost productivity due to mental health absences or lack of engagement.
- Improve employee job satisfaction.
- Happy workers are productive workers. Even when financial issues don’t take a toll on employees’ mental health, the stress still reduces productivity. About 40% of workers say they’d be more productive if they didn’t have to worry about their personal finances while on the job, where they admit to spending about one-quarter of their time addressing financial issues.10
Tribal businesses who promote financial wellness programs can reap tangible gains in employee focus and productivity. Employee education on budgeting, debt management and building emergency savings shouldn’t be considered an expense or loss of productive time but an investment in worker wellbeing that will have a long-term and positive impact on the bottom line.
Final thought
Remember, when employees are stressed financially, their physical, mental and emotional health suffers. Employees are happier and healthier when they have a sense of financial wellbeing and employer support, which significantly improves their loyalty, attendance and performance. Your company will also reap the benefits – from upticks in productivity to net profits.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
For more information on Tribal insurance and financial wellness programs, contact a HUB International broker. In addition, HUB Retirement Services provides ongoing guidance on your plan’s structure and management to ensure it meets regulatory compliance guidelines and the interests of your employees.
1 PwC, “PwC’s 2023 Employee Financial Wellness Survey,” January 2023.
2 PwC, “PwC’s 2023 Employee Financial Wellness Survey,” January 2023.
3 Salary Finance, “Inside the Wallets of Working Americans,” 2020.
4 PwC, “PwC’s 2023 Employee Financial Wellness Survey,” January 2023.
5 Morgan Stanley, “The Real Costs of Employee Financial Stress – and How Employers Can Help,” September 2021.
6 PwC, “PwC’s 2023 Employee Financial Wellness Survey,” January 2023.
7 Jobvite, “The Real Cost of Employee Turnover (And How to Prevent It),” February 19, 2024.
8 Training, “2023 Training Industry Report,” November 14, 2023.
9 Indian Health Service, “Behavioral Health Among American Indians and Alaska Natives Fact Sheet,” March 2023.
10 Employee Benefit News, “Employees spend 25% of their workday worrying about money,” April 11, 2022.
