In a recent webinar I co-hosted with Lynne Walters of Ally Financial, we discussed the transformative power of employee financial wellness programs. In our exploration of this critical topic, it became clear that prioritizing individuals’ financial health as part of the total employee experience creates a triple win: Empowering the workforce, strengthening communities and boosting business performance.
The current state of employee financial health is concerning to say the least and financial stress has affects across generations:
With Gen Z and Millennials making up more than 60% of the workforce the effect of financial stress on workplace productivity is substantial. Employees lose more than seven hours of productivity each week due to financial stress, costing U.S. employers an estimated $183 billion annually.
These statistics underscore the urgent need for comprehensive financial wellness programs in the workplace to be deemed as, not just a must-have, but imperative to an organizations’ core values. And Ally Financial leaders like Lynne are setting the standard in this conversation. Their approach goes beyond traditional benefits, offering a range of innovative solutions that meet diverse needs across the now six generations in the workplace.
Empowering employees
In our everyday work with company leaders, we hear how they highly prioritize engaging their workforces in organizational solutions, and that employees want to thrive within the company. A major factor in meeting those needs includes implementing programs that go beyond traditional benefits and include education and participation.
One standout initiative is Ally's stock gift program, wherein eligible employees who don't already receive stock as part of their benefits package receive 100 shares of Ally stock. This not only provides employees with actual ownership in the company via an ESOP (Employee Stock Ownership Program), but it also helps them build their long-term financial security. It's a powerful way to align employee interests with company success while fostering financial growth.
Ally leaders also recognize the importance of financial education. They offer a range of educational resources, covering topics from basic savings strategies to more advanced subjects like retirement planning and homebuying. This comprehensive approach ensures that all employees, from those just entering the workforce to seasoned professionals, have access to valuable financial knowledge.
Paired with their emergency financial relief program, Ally has designed a wellness program that focuses on near and long-term financial goals while also creating safety nets for when employees experience financial setbacks.
Elevating the organization
Organizational leaders’ intentional choices to support their communities and workforces always points back to company values. Many people desire to work for companies based on whether they see company leaders participate in broader societal solutions, and one example of this is how leaders representing a company respond to personal and large-scale crises.
Perhaps among the most meaningful components of Ally's comprehensive financial wellness program is its Emergency Financial Relief fund, designed and managed with E4E Relief. This critical piece in the financial wellness puzzle represents Ally leaders’ investment in supporting employees when unexpected financial challenges – including disasters and hardships – happen. By providing cash grants directly to individuals, Ally’s assistance fund helps prevent the cascading financial repercussions that can make it difficult for employees to recover from sudden setbacks. The evidence is clear and measured: Since Ally leaders launched the relief program in 2020, during the pandemic, 76% of Ally employees report regaining their financial stability, 81% report a desire to continue working for the company and 70% report that they were able to maintain productive work levels.
The success of Ally's financial wellness initiatives is reflected in their stellar annual employee engagement survey scores. By prioritizing employee financial health, Ally has cultivated a culture where employees feel valued both professionally and as individuals with complex financial needs and goals.
Strengthening communities
The ripple effect of strong benefits and support for your people extends far beyond the workplace. E4E Relief developed survey-based research called ImpactStack℠ which measures the social and business outcomes of grants to individuals. It relays this point: The positive social impact of caring for an individual adds strength to their community and their ability to contribute to the business. As Lynne pointed out during our webinar, when you create a better life for employees, they naturally give back to their communities. In 2023, 50% of Ally employees volunteered in communities where they live and work.
There's a distinct connection between employee well-being and customer care. When employees feel financially secure and supported by their employer, they're better equipped to provide exceptional service to customers. This creates a virtuous cycle of positive outcomes for the company, its workforce and the broader community.
As we navigate an increasingly complex economic landscape, it's clear that comprehensive and innovative financial wellness programs, including Emergency Financial Relief, are no longer a perk—they're a key contributor to well-being.
Consider today what may be next for your organization to boost financial wellness, as the benefits of financial wellness programs create a ripple effect, touching every aspect of organizations and society at large.
*This article was originally published on HR.com
