Financial Wellbeing Support Reduces Staff Turnover By A Third

Companies that provide staff financial wellbeing support as part of their employee benefits programme, can reduce staff turnover by a third, according to a new study.

The new Questis study, entitled ‘Navigating the Great Resignation – How Financial Empowerment Can Help Companies’, showed that companies embracing financial empowerment through employee benefit programmes, by providing access to educational resources or personal finance coaching, were able to reduce turnover by 33%

The study carried out by the financial empowerment company offers a quantitative and qualitative analysis on the costs of hiring and examines the relationship between employee benefits and productivity; defining clear strategies on how companies can decrease turnover in the workplace.

SOLUTIONS TO REDUCE STAFF TURNOVER

“Turnover is widely considered a negative performance indicator. It is costly and disruptive.” stated John Tabb, Co-Founder and CEO at Questis. “When employees are unsatisfied with the culture or management, inadequate compensation or benefit packages or lack mobility in their current position, the company suffers. This has a direct impact on productivity and ultimately, profitability.”

As resignation rates have doubled year-over-year due to closures and financial hardships caused by the global pandemic, hiring managers are actively seeking solutions to reduce turnover. As a problem worthy of a solution, Questis found that businesses that help their employees better manage their personal finances have a considerable advantage in employee retention.

EMPLOYEE RETENTION STRATEGIES

“Whereas quality recruitment remains a top concern for hiring managers across industries, it’s no surprise that companies are more successful in recruitment and talent acquisition when they put forth a significant effort to make their employees feel valued in the workplace,” said Tabb. “However, there is a real problem in retaining that talent. This study offers tangible solutions on how companies can achieve this by embracing financial wellness; helping employees eliminate financial stress which leads to real results; a better synergy and better corporate performance across the board.”

One of the main facets of successful financial empowerment solutions is customisation. The study found that employees were more likely to follow through with the programmes when they were the primary partner in developing their plan. 

“When you include your employees in the process of creating their own roadmap to financial empowerment, you have a greater impact and better results,” added Dr Martha Menard, Director of Coaching at Questis. “It’s true – employees are the most important asset in the workplace. What’s more impactful in reducing stress than offering a personalised solution that lets the individual have a direct say in how they can achieve their financial goals? While we have expertise in addressing financial concerns, the individual is the expert on their situation, motivation, and resources they have to address those concerns.”  You can find out more about the study here.

Another recent study demonstrated a clear connection between employee financial wellbeing and workplace productivity. Click here to read more.