EL SEGUNDO, Calif.–A new analysis finds many employers are building loyalty with Millennials and Generation Z employees through financial wellness programs that offer financial mentorship and guidance for maximizing financial potential and realizing life goals.
A survey conducted by the Financial Wellness Think Tank said employers who help workers in these generations to “live their best lives” are evolving the traditional benefits model to create holistic company cultures where employees thrive both personally and financially.
The new Financial Wellness study looked at three major life events—buying a home, getting married, and having children—and how employers can empower their workers to prepare for these milestones financially, thus driving employee satisfaction and engagement.
Among the key findings:
- Owning a home is a leading indicator of an employee’s future financial success and is highly correlated with reducing turnover and improving both work and life satisfaction.
- Having children is a strain on employees’ finances. However, family planning can defray most of the financial strain for employees.
- Employees who own a home and have a partner to share the costs of home ownership and children exhibit lower levels of financial stress, with 19% reporting high or overwhelming levels of financial stress compared to 44% for employees that don't have a partner or own a home, the study found.
- The Think Tank estimates the value of planning for these life events at over $150,000 for the average employee over the course of their lifetime. That equates to about $10,000 in additional annual income in their retirement years.
For the full report, go here.