Reducing employee turnover with financial wellness programs

Imagine if your connection to your work felt as rock solid and built-to-last as Leslie and Ben’s relationship in Parks and Recreation. 

Can’t relate? You’re not alone. 51 percent of American workers are actively looking for a new job. 

It reportedly costs anywhere from 40 percent to 200 percent of an employee’s annual salary to replace them. 

Let’s be honest: many employees’ commitment to their workplace is probably as on-again, off-again as Ross and Rachel from Friends – and every employee has different reasons for leaving. 

The reality is that turnover happens in every industry, but preventive approaches can be taken to manage its costs. In fact, Gallup says 42 percent of turnover is preventable, and Employee Benefit News puts the number at 75 percent.

So, what can you do about it?  

What causes employee turnover?

Employee turnover measures the number of workers who leave a company every year or during another specified time period. Regardless of the reason for employees leaving, turnover impacts organizations’ bottom line and business objectives. 

Before we look at solutions for employee turnover, we need to understand what causes it. 

According to Forbes, employee turnover is usually driven by interpersonal issues, a lack of work-life balance, or a lack of recognition. Let’s dig into that last point for a second.

A lack of recognition can mean a lot of different things. Beyond an employee feeling like their hard work is going unnoticed, they may not feel like their total compensation reflects the work they do.

Inadequate total compensation is the most common reason for voluntary employee turnover.

ZayZoon surveyed 5000 employees from a variety of industries about the state of their financial wellness. We found that 52 percent of respondents experience stress about their finances daily or multiple times a day. 

This is a tough bind for employees and employers. Sometimes, you reach a cap on possible salary increases, or you may even be in a salary freeze. 

Thankfully, there are cost-effective ways to address employees’ financial needs. Let’s talk about financial wellness programs and what they can accomplish at your workplace. 

What is a financial wellness program?

Simply put, financial wellness programs help reduce financial stress among employees. 

These programs offer much-needed resources, like coaching, education, or access to platforms that help employees manage their money. In turn, financial wellness programs boost employee satisfaction. 

A Bank of America Study found that 84 percent of employers increased employee retention by offering financial wellness tools. 

Ready to learn about what kinds of financial wellness programs could work for you?

Types of financial wellness programs

Education

Educational financial wellness programs provide learning opportunities to help employees better manage their finances. 

This could be as simple as a recurring workshop series focused on financial wellness. Workshops are a low-cost way to create financial literacy and a sense of community among your workforce.

Consider inviting guest speakers, or even someone from your own finance department, to run sessions. Topics can include budgeting and saving, how to plan student loan payments, making the most of your workplace benefits, and more. Better yet – survey your employees to see which financial wellness topics they want to learn more about. 

You can also provide your employees with access to online, self-led financial education materials. Bank of America offers free resources related to saving and budgeting, taxes, credit, home ownership, and more. 

Guidance and Coaching 

Access to in-house financial coaching or external professional guidance can ease financial stress for employees. 

Direct, personalized advice can help employees take control of their finances and plan for the future. 

Depending on the size of your organization and budget, consider partnering with a company that can provide financial planning services to your employees. 

Partnerships with these companies can give your employees access to a dedicated professional who is invested in their financial wellness. 

Based on what’s right for your employees, financial guidance and coaching can be accessed in person or through digital tools. 

Free Food, Perks, and Other Benefits  

Why is a perk like free food a financial wellness strategy? A survey found that over 25 percent of Americans have occasionally skipped meals to save money. 

Food insecurity and food prices are rising. So, it’s no surprise that free and subsidized food is a “must-have” perk for 57 percent of employees.

46 percent of workers said that they’re more likely to stay with an employer who provides food. 

It’s clear that perks like in-office meals can make a positive difference in the daily lives of employees and bottom lines of employers.

Consider implementing a recurring free lunch program or other perks and non-traditional benefits that help ease employees’ financial stressors. These can include mental health days, child care assistance, recognition programs, and other strategies that help employees be more present at work. 

ZayZoon: employee financial wellness at no cost to employers

Ready to offer a financial wellness benefit to manage employee turnover, but don’t know where to start?

Look no further. Businesses that use ZayZoon have seen a 29 percent reduction in turnover.

ZayZoon offers financial wellness products including Earned Wage Access (EWA). With ZayZoon, you can help employees get advances on their already-earned wages with low or no fees. It’s easy to integrate with your payroll provider and absolutely free to employers. 

Nearly half (47 percent) of organizations using EWA say that Earned Wage Access has made their operations more efficient. 

But ZayZoon offers even more than Earned Wage Access. Other ZayZoon perks include gas cards and gift cards for popular vendors with up to 25 percent bonuses on every payout. 

Furthermore, ZayZoon offers employees the ability to grow their financial literacy through our Financial Wellness platform. 

ZayZoon users can access beginner, intermediate, and advanced educational courses on topics ranging from opening a bank account to building credit. There are many other financial education resources available through ZayZoon, like a budgeting tool, and even personalized expense insights that help users understand their spending and saving behaviors. 

Give your employees daily financial freedom and flexibility with ZayZoon.

Can financial wellness programs really help retain employees?

Yes! Take it from businesses who have used ZayZoon. One employer says: 

“As a hiring coordinator I don't like telling folks we have a biweekly pay cycle in an industry where weekly is the norm. I explain ZayZoon immediately after and it always helps. I appreciate having it available to our employees because there are many people coming from the gig economy – daily pay to biweekly is very hard and I would lose a lot of good people without it.”

Need more convincing? Here’s what an everyday employee just like yours said about ZayZoon and their financial wellness: 

“ZayZoon allows me a cushion of financial security until I receive my paycheck. That cushion means the world to us. It allows me to make choices I usually cannot make.”

Give employees the freedom and flexibility to address their financial needs on a daily basis, and in turn, their relationship with the workplace will go from casual to Leslie and Ben levels of ride-or-die. 

Book a free demo or check out our Savings Calculator to learn how providing your employees with financial wellness options can save you money!