Brittany Pierce
Financial stress is a growing issue in the post-pandemic economy, affecting both employees and employers. With rising inflation, increasing interest rates, and fierce talent competition, workplace dynamics have shifted dramatically. The impact of financial stress extends beyond personal finances, contributing to emotional and mental health declines that can significantly reduce workplace productivity. Recognizing this, employers, including community banks like Old Point National Bank, are adopting comprehensive approaches to employee wellness, aiming to address financial stress as part of broader strategies to support the workforce and protect the bottom line.
The Ripple Effect of Financial Stress
Economic trends significantly impact employees and, in turn, employers. A study by Morgan Stanley and the Financial Health Network revealed that 58% of employees report financial stress, including 52% of households earning over $100,000 annually, debunking the myth that it primarily affects lower-income individuals. The middle class traditionally symbolized financial stability and a reflection of the American Dream. When this becomes harder to achieve or maintain, individuals may feel heightened stress that has a negative impact on emotional, mental, and physical health in dramatic ways.
This widespread concern has far-reaching consequences:
- Productivity Loss: Employees lose over seven hours of productivity weekly due to financial stress, costing U.S. employers $183 billion annually, according to a June 2024 SHRM study.
- Health Implications: Financial stress can lead to anxiety, depression, and physical ailments like hypertension and heart disease.
- Workplace Performance: Stressed employees struggle to focus, be creative, and remain productive.
Employer Opportunities in Challenging Times
While the challenges of financial stress may seem daunting, they present unique opportunities for employers to support their workforce and enhance business outcomes. By focusing on two fundamental principles, education, and communication, organizations can create practical solutions to address financial wellness effectively.
The commonly used phrase “knowledge is power” is more than just a phrase. People often struggle to improve because they lack the knowledge or awareness to make better choices. By providing employees with tools and resources to learn and grow, especially within their lives, employees are likely to feel more empowered and take control of personal situations that arise. Strategic and consistent communication is a must to educate the employee population properly. Openly discussing various wellness topics helps normalize conversations about subjects like finances, making them feel less taboo or uncomfortable. Over time, these discussions shift the perspective, framing finances as tools for personal growth and self-improvement rather than sources of shame or discomfort.
By adopting a holistic approach to employee wellness, companies can:
- Boost Productivity: Address financial stressors to enhance workplace performance.
- Reduce Healthcare Costs: Proactive wellness initiatives can lead to fewer health-related issues.
- Increase Employee Engagement and Retention: Supporting financial wellness can improve job satisfaction and loyalty.
Practical Solutions for Employers
Employers can implement cost-effective knowledge-based solutions, such as offering financial wellness programs, budgeting workshops, and retirement counseling, and communicate, communicate, communicate! According to Forbes, by providing access to unbiased financial resources that address the needs of employees at every stage of life, employers can empower employees to make informed financial decisions and achieve their life goals.
To tackle financial stress effectively, employers should focus on two key principles: education and communication:
- Financial Wellness Programs: Offer budgeting workshops, retirement counseling, and access to financial resources.
- Strategic Communication: Normalize conversations about finances through regular, open discussions.
- Leverage Existing Resources: Promote awareness of EAP programs that offer financial counseling and other wellness resources.
Old Point National Bank's Approach
In 2024, Old Point National Bank began a wellness campaign with the objectives of enhancing employee engagement and improving overall employee health. We started by designing an engagement survey to better understand the needs of our employees and the results were interesting. Results from the survey showed that the top items that Old Point employees wanted to know more about included managing mental health, financial health, and retirement planning, with all three areas landing close to or above the fifty percentiles in employee responses.
Using this data, we sprang into action educating and communicating with our employees by hosting live webinars with subject matter experts, highlighting different benefit options and programs on our intranet, and implementing a company fitness challenge. Our webinar topics ranged from Social Security Retirement Planning to The Connection Between Exercise and Mental Health. We used different forms of communication as a way to connect with our employees, using email, the intranet, videos, and infographics to catch the eye of our employees. The feedback from employees and their engagement was amazing! Only time will tell the true impact of the wellness campaign as we continue to implement it into 2025, but I believe we are heading in the right direction by addressing financial stress comprehensively as a factor of overall health and wellness.
By prioritizing financial wellness through education, communication, and tailored initiatives, you can build a healthier, more engaged, and productive team. Programs like financial webinars and wellness campaigns aren’t just perks—they’re strategic investments. Together, we can create a resilient, motivated, and thriving workforce equipped to tackle today’s challenges.
Written by Brittany Pierce, Human Resource Generalist, Old Point National Bank