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Employee Financial Wellness Pays Off

By Insights Team on October 7, 2018

Employee Financial Wellness Pays Off

Employers have long focused on maximizing employee productivity, but most of those efforts tend to focus on technology and employee engagement while at work. But what about factors outside of the office?

Many managers don’t realize the financial stress their employees deal with when they go home at the end of a shift. A recent CareerBuilder survey found 78% of American workers live paycheck to paycheck, including 10% of those earning $100,000 or more per year, according to CNBC. Is this financial fragility an opportunity to help workers while boosting your bottom line? The data says yes!

Helping workers when it matters most

Mobile Bank Varo recently released a survey that found 85% of Americans are stressed about money “sometimes” and 30% are stressed by finances “constantly.” If 30% of your workers are constantly distracted by anything, you’ll have some level of productivity loss. But financial stress is so pervasive, it is a good target for employers to step in and make a difference.

Because even 10% of those making six-figures live paycheck to paycheck, it may not be their income level causing the biggest levels of financial stress. Some help with managing their cash flow from week to week could be all that’s needed to bring about an improvement both in and out of work.

Cashflow and emergency savings alleviate the biggest financial pain points

When living paycheck to paycheck, meeting common needs like rent, groceries, and bills can be a challenge. This is why so many workers turn to expensive and predatory payday loans that often charge hundreds of percentage points when you look at the annual percentage rate (APR).

Outside of earlier access to wages, emergency savings could help America’s workers build a small buffer to manage bills and other unexpected expenses when they arise. The Federal Reserve found that 40% of Americans can’t afford a $400 emergency without borrowing or credit cards.

PayActiv offers solutions to both of these critical employee struggles. The PayActiv app gives employees access to earned but unpaid wages ahead of payday for a low $5 fee and at no cost to the employer. The app also includes features for workers to save automatically every payday, helping them build that emergency fund so they can get out of the paycheck to paycheck cycle for good.

Less stress means better productivity

It’s a well-known fact that workplace stress lowers employee productivity. It is important to consider stress outside of work too. Stress at home certainly impacts workplace performance. From increased sick days and absenteeism to lower productivity when on the clock, employees lives at both work and home are important to overall productivity.

Clearly, employers should be taking bigger steps to help employees manage the competing demands of a busy and stressful life even in the hours you don’t see them. If employees are happy and doing well outside of work, they will show up refreshed, healthy, happy, focused, and ready to contribute the best effort during their workday.

If your business is interested in helping employees reduce financial stress without any cost, PayActiv is here to partner with you. Contact PayActiv today to get started.

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It's more than a paycheck.
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It's more than a paycheck. It's peace of mind.

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