Financial Wellness & Employee Retention
Employee retention is about creating an environment where employees thrive, fostering loyalty, and reducing costly turnover. Financial wellbeing plays a critical role in retention rates, as employees are more likely to stay with organizations that address their financial concerns.
According to Gartner, for every 1% increase (up to 10%) in employees at risk of leaving, turnover costs rise by 2.5%, with an average cost of 17% or $15,000 per person. Shockingly, 44% of employee turnover stems from financial issues. High turnover not only drains resources but also disrupts morale and business continuity.
A survey of 800 employees revealed that 90% struggle with financial problems, and 40% report work as a major source of stress. Financial stress impacts productivity, engagement, and loyalty, leading to higher churn rates. This is especially concerning as 90% of top performers leave their companies within the first two years, costing businesses up to 300% of the employee’s starting salary.
Combat Turnover With Financial Wellness
The solution is clear: focus on employees' financial wellbeing. Offering financial wellness programs boosts retention by helping employees manage their money, reduce stress, and achieve financial goals. Yet, 55% of companies lack financial wellness programs, missing an opportunity to improve employee satisfaction and retention.
Financial wellness programs help employees feel supported, valued, and appreciated. Employees who believe their employer cares about their wellbeing are more likely to stay loyal. In fact, 87% of employees consider health and wellness offerings when choosing an employer.
The Business Benefits
Retaining employees is not just about loyalty—it’s about productivity and cost savings. Financial wellness improves job satisfaction, reduces absenteeism, and helps employees remain focused at work. Companies with strong retention save on hiring and training costs while fostering a culture of loyalty and engagement.
By addressing financial stress, your company can amplify success, prevent unnecessary turnover, and create a thriving, loyal workforce. Implementing financial wellness programs is a simple yet effective step to build a happier, healthier, and more productive team. Retention begins with caring for employees—and financial wellness is key.