The term “financial wellness” appeared a few years ago, and has been winning increased acceptance among employers. Employers recognize that good personal finance habits amongst employees are as important as healthy eating and exercise.
Yet what exactly does “financial wellness” mean? It’s a vague term that is a catch-all for just about anything with a dollar sign involved.
There’s another problem regarding “financial wellness” and that’s that only 23% of employers, according to the same survey, even utilize financial wellbeing metrics with their workforce. PayActiv believes that this low percentage is due to the very fact that “financial wellness” is not clearly defined. How can you measure what you can’t clearly define?
On the employee side, there is also a wide disparity in regard to definition. PwC’s 2019 Employee Wellness Survey asked employees about the definition of financial wellness.
Notice that employee definitions are not only widely varied, but are highly specific and address the here-and-now.
This highlights yet another problem with “financial wellness”, in that there appears to be a dislocation in how employers and employees even think about the term, and what it means.
PayActiv is striving to bridge this divide, so everyone can talk about this important topic from the same frame of reference.
How does PayActiv accomplish this? With earned wage access and all the other tools of our smartphone app. By letting employees access money they’ve earned when they need it, having access to free financial counseling, access to bill pay, and our other services, all three of the above-stated values become reality.
This reality encompasses everything employees said they want from “financial wellness” – from not being stressed about finances to being debt free to meeting expenses – to the responses employers gave, as well.
The key to understanding the true meaning of “financial wellness” is rooted in PayActiv’s core belief: that people and economies flourish when everyone is able to fully participate. We begin by thinking about how we feel today, and what we aspire to feel each morning to come.