According to a study by the New Freedom Financial Network, employers who offer comprehensive financial wellness benefits can reduce worker stress and improve productivity
Lost productivity of debt-stricken employees is costing U.S. businesses more than $40 billion annually
SAN MATEO, Calif., June 28, 2022 /PRNewswire/ — Liberty Financial Network (FFN), a leading digital personal finance company, has released a new white paper, Filling the Gap in Financial Wellness Benefitswhich examines how employers who extend financial benefits beyond traditional wealth management and retirement savings programs can reduce worker stress and improve productivity.
In recent years, workplace benefits have expanded beyond retirement and health insurance to include financial wellness programs focused on wealth accumulation and savings for financially secure employees. . But the reality is that a significant segment of the workforce struggles to meet day-to-day cash requirements and are unable to utilize these long-term planning vehicles.
Research indicates that employer-sponsored financial wellness benefits that help workers pay off or manage debt can significantly reduce employee stress, alleviate other wellness issues, and mitigate productivity losses. at work resulting from the current financial difficulties of employees.
“Today, very few companies offer comprehensive financial wellness programs, leaving gaps in benefits offerings, especially for the growing number of people who are too focused on their immediate financial challenges. to adequately prepare for the future,” said André Housser, co-founder and co-CEO of Freedom Financial Network. “In the United States alone, companies know more than $40 billion annual productivity losses due to their employees struggling with unsecured debt. By expanding workplace benefits to include financial literacy and education, debt management or resolution offerings, budgeting assistance, or even debt consolidation programs, more employees can see their financial needs met and set out on the path to a better financial future.”
Here are examples of four key financial wellness benefits focused on meeting the needs of indebted employees:
- Budgeting tools: Employees struggling financially need access and assistance to use a budgeting tool that can help them manage cash flow. By learning to plan and anticipate needs proactively, employees can avoid some of the stress and time that comes with constant reactive behavior. Ideally, a budgeting tool will be part of a larger financial education and literacy effort and include an app-based platform.
- Debt management tools: As part of this broad financial education effort, employees struggling with significant debt need help finding a way out. They should start by understanding the range of alternatives available, including a debt management plan that can help some people struggling with credit card debt with a lower interest rate.
- Debt consolidation programs: Debt consolidation can be a powerful tool to make debt repayments both more affordable and easier to manage. This type of program can incorporate the buying power of a benefits platform to provide discounts to participants.
- Debt settlement services: The most acute debt problems involve having to deal with creditors and collection agencies – demands that often require attention during working hours. Debt resolution services can provide relief by reducing the principal amount of employee debt and helping to arrange payments.
For more information on financial wellness benefits, download the Filling the Gap in Financial Wellness Benefits white paper: https://www.freedomdebtrelief.com/media-assets/surveys-studies/
About Freedom Financial Network
Liberty Financial Network is a leading digital personal finance company. We do what traditional banks don’t: put people first. Our solutions help everyday people engage and stay on the path to a better financial future, through innovative technology and personalized coaching. Leveraging proprietary data and analytics, our solutions are tailored to every stage of a consumer’s financial journey and include personal loans (LibertyPlus), home equity loans (Ready), debt assistance (Debt Relief Freedom), and even financial tools and education (Bills.com). Freedom Financial Network has more than 2,300 dedicated employees across California, Arizona and Texas and is recognized as a Best place to work. For more information on career opportunities at Freedom Financial Network, visit: https://jobs.freedomfinancialnetwork.com/
SOURCE Freedom Financial Network