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Written by: Danny Kofke, Motivational Mentor

Financial stress is one of the leading causes of high employee turnover. When workers feel
financially strained, they are less able to focus on their jobs and less likely to feel loyalty towards
their employer. Fortunately, the right financial mentor can help educate employees to
ensure that they get the most of their money and take advantage of employer-sponsored
initiatives. This, in turn, can help boost employee satisfaction and improve retention rates
within your organization.

The Cost of High Employee Turnover

Companies that experience high employee turnover often try to find ways to keep workers
satisfied, but find that it is an uphill battle. If a business fails to invest in its employees and
address their specific needs, particularly financial ones, it will almost certainly see high turnover
rates. And the cost of high turnover takes away from the bottom line — in more ways than one.

First and foremost, when employees only stay at your company for a short time, it greatly
increases the hours and labor required to train new hires. This turns into a vicious cycle
because the funds needed to continuously train and rehire cannot be allocated to programs or
initiatives to decrease financial stress, improve job satisfaction, and ultimately reduce turnover.
Consequently, it is very difficult for businesses with extremely high turnover to find room in the
budget to start making the necessary changes.

Additionally, high employee turnover typically has a negative impact on your overall brand. If
potential hires talk with current and past employees or simply read online reviews, they could
discover that workers do not last very long at your company. This will make it harder to hire the
talent you need to run your business.

Financial Mentorship Increases Retention Rates

The United States is currently in the middle of the “great resignation.” With so many people
quitting their jobs, healthcare and other benefits are just not enough to entice new applicants.
As an employer, if you show that you see people as more than just workers, it can help your
company hold onto employees for the long term. This is because, on top of the decent
compensation and benefits packages, employees want to feel valued. That little bit of extra
value can help draw in more talent and keep employees retained.

Surveys show that the vast majority of employees are more willing to stay with an employer that
provides benefits like employer-sponsored education programs and direct benefits like childcare
support. [1] At Mentoro, we have found that a combination of incentives to increase employee
engagement in financial initiatives, educational programs, and one-on-one consultations with a
finance mentor can greatly reduce financial stress and increase the desire to stay with a
company. For example, after implementing a similarly designed program with the Harris County
School District in Hamilton, Georgia, metrics showed an overall improvement in employee
financial wellness between 2020 and 2021. Moreover, the number of employees who reported
feeling distracted by their finances at work decreased by more than 10%. [2]

How to Find a Financial Mentor For Your Staff

Financial wellness means something different to different people. Financial advisors, stock
market mentors, and more general financial mentors charge fees, which means that most
middle-income earners simply cannot afford the same financial wellness benefits as higher-
income earners. For this reason, organization-wide financial mentorship can provide education,
hope, and real-world benefits to everyone at your organization, regardless of their position or
salary.

At Mentoro, we give advice based on what is best for the client’s finances. People want
unbiased guidance and actionable advice. Consequently, finding the right financial mentor for
your staff is all about finding the kind of services that appeal directly to your employees’
requirements. Therefore, you must ensure your employees are getting what they actually want
and need. Some employees have different needs than others, so make sure that your program
actually helps all employees, not just a particular segment of your workforce.

Financial wellness used to be solely based on investment, which is why many companies turn to
a stock investing mentor or value investing mentor. But the reality is that financial wellness can
be so much more than that. When analyzing financial wellness, a financial mentor should
consider many different elements, from estate planning to student debt. This is why Mentoro
offers the perfect solution for both employers and employees.

Mentoro offers customizable solutions involving both human and technological resources. We
aim to reduce financial stress, increase knowledge of financial benefits, and increase employee
retention, engagement, and satisfaction. By providing a financial mentor to assist employees
and other unique educational resources, Mentoro gives businesses the ability to retain
employees and build a stronger, more productive workplace.

If you are currently in the market for a financial mentor or you want to learn more about
improving employee retention for your business, be sure to contact the experts at Mentoro today!

Written by: Gilles Hudelot, Director of Education

As a business owner, it can often feel difficult to maintain a productive workforce while managing slim profit margins or poor cash flow. You want to provide more benefits and opportunities for your workers, but you’re unsure if the investments will pay off in the end. Moreover, you may not have the risk tolerance to take that chance. Fortunately, numerous studies have shown that increasing financial health and providing financial wellness programs to employees consistently drives employee engagement and pays dividends over the long term.

What Is Financial Wellness?

Contrary to popular belief, financial wellness is not fixed to a specific dollar amount, but rather a position of physical and mental well-being. The salary that will ensure the financial wellness of one person will not apply to another. In fact, setting goals based on numbers is often not the best strategy. Instead, improving financial wellness comes down to getting a person into a good place based on various aspects of their lives, including their workload, stress, family life, education, and career opportunities. Income is just one of many factors that contribute to financial wellness, but ultimately, getting the right education to make sound financial decisions is the best way to achieve financial wellness and greater peace of mind.

Case Studies On Financial Wellness & Employee Engagement

From an employer perspective, it’s important to look at the hard evidence and relationship between financial wellness education and employee engagement. The studies below show that if employees have financial stress, they will be much more distracted at work. In most cases, they will not be able to engage. They will have to take time away from their job to deal with financial issues or their focus will be on financial stress, rather than adding value as an employee. Alternatively, when given access to useful financial wellness education, employees are far more engaged with their work, their finances, and their employer.

Employee Engagement & Financial Wellness Facts:

• Chubb Insurance started its own Employee Assistance Program in 2018, which included free 30-minute calls with expert financial advisors. Since the program began in 2018, employee engagement in the company’s financial initiatives rose significantly. Additionally, productivity increased and medical costs related to stress dropped. [1]
• The city government of Denver, Colorado found that increased benefits education, guided focus groups, and regular financial health initiatives can lead to greater “employee retention, a potential reduction in employee stress and in annual health care costs per employee, greater employee engagement, and fewer days missed per year due to unexpected illness.” [2]
• An extensive study by the Center for Social Development at the George Warren Brown School of Social Work found that a majority of employers who provided financial wellness programs for employees reported “positive improvements in job satisfaction, company loyalty, and productivity.” [3]

These are just a few examples, but they all show the inherent benefits of investing in the financial wellness of your workforce. 

How Employers & Employees Can Benefit From Mentoro

Financial wellness and employee engagement can serve a purpose both at home and at work. By engaging with employees’ specific goals and financial needs, employers show the ability to stay connected with their employees and have employees understand what they are offering to them. If an employer offers financial wellness education, it is just another way to show that they care about the employee’s well-being.

For employers, there’s an ROI to provide financial wellness education as an employee benefit. If low-maintenance initiatives can enhance employee engagement and wellness at the same time, it ensures that both employers and employees can see greater results. Based on our work at Mentoro, one-on-one consultations with financial experts have proven to be one of the most popular and helpful aspects of financial wellness education programs. 

There is plenty of tech out there to help people manage their finances, but talking directly to an expert about their financial situation can really help an employee develop a specific strategy to address their needs. At Mentoro, we give employees an assessment that allows us to analyze the data and see what they really need within the business, both at the organizational and individual levels. Some employees have relatively low incomes, while some have higher incomes. This means that every business requires a nuanced approach to financial health and wellness programs. In short, developing catered employee financial wellness initiatives can help improve overall satisfaction within the company, enhancing both productivity and employee engagement.

If you are currently in the market for a financial education company or you want to learn more about the benefits of financial wellness education and enhanced employee engagement, be sure to contact the experts at Mentoro today!

Many are struggling to gain control of their money.  In fact, these financial troubles don’t discriminate according to age.  In fact, the following demographic groups are experiencing high financial stress:

• 77% of parents
• 75% of millennials aged 18-35
• 76% of Gen Xers aged 36-49 

This is why financial wellness matters – now more than ever!  Financial stress contributes to a variety of issues in the workplace and at home.  Here are some very sobering statistics showing how detrimental financial stress is:

• 31% of people who have high financial stress report their productivity at work is impaired

• 59% say finances played a role in their divorce

• Those with high levels of financial stress experience 3 times a higher rate of domestic violence

• 60% of Americans say they don’t exercise, don’t get regular checkups, and suffer from anxiety and depression due to financial stress

In addition, 53% of suicides recorded financial struggles as a primary factor.  As sad as this is, a financial wellness program could be the difference between life and death.

There are countless organizations that offer their version of financial wellness.  However, it’s not working!  Why is this?  We believe there are two main reasons why this is so.  First, the world is changing yet many financial wellness companies are not.  They continue to offer models that are outdated and ineffective.  Second, these companies are not focused on the consumer experience.  Many are just concerned with just offering something, checking that box and moving on. 

To help change the definition of financial wellness, we focus on four key components – engagement, examination, education and empowerment.  By engaging with one of our expert money mentors, we begin to build a road map to help each participant have a better financial future.  Finances can be difficult to discuss, and we believe that face to face interaction is the best way to build a relationship.  Our expert advisors examine our participants’ incomes and expenditures, searching for ways to adjust their budgets and savings to help ease monetary stress.  Our team also familiarizes ourselves with our participants’ unique workplace offerings and educates them on how to best utilize companywide financial incentives to help them attain their financial goals.  Finally, we empower every participant to take responsibility for their future and support them on this journey.

By empowering each of our participants to focus on their unique financial wellness journey, Mentoro aims to create a more productive and happier workplace.

The pandemic has helped create what is being referred to as the Great Resignation in which millions are leaving their jobs in search of more meaningful careers.  According to the U.S. Bureau of Labor Statistics, 4 million Americans quit their jobs in July 2021.  Resignations peaked in April and have remained high since.  In fact, there were a record-breaking 10.9 million open jobs at the end of July. (1)

One of the biggest reasons for this is employee burnout.  In addition, many are struggling financially as shown by the following:

• 30% say they worry every day or almost every day about how much debt they have

• 29% worry about their ability to save for retirement

• 27% say they frequently worry about paying their bills

• 27% say they worry about the cost of health care

• 19% worry almost every day about being able to pay their rent our mortgage

• 18% worry about being able to buy enough food (2)

Burnout coupled with financial stress has created the perfect storm for employees to evaluate where they are spending the majority of their time, and many have had enough.  How can business leaders help retain their talent?  One of the best ways to invest in your employees is by implementing a financial wellness program.

When looking to implement a financial wellness program, you will want to make sure it will be able to help your employees and not just check a box.  To help make this happen, Mentoro focuses on these four key elements:

Engage – By engaging with one of our expert money mentors, we begin to build a road map to help your employees have a better financial future.  Finances can be difficult to discuss, and we believe that face to face interaction is the best way to build a relationship.

Examine – Our expert advisors examine your employees’ income and expenditures, searching for ways to adjust their budgets and savings to ease monetary stress.

Educate – Our team familiarizes ourselves with your companies’ programs and educates your employees on how to best utilize companywide financial incentives to help them attain their financial goals.

Empower – With a personalized plan in hand and a clear direction, we empower your employees to take responsibility for their financial futures and support them during their journeys.

As you know, replacing an employee can be extremely costly.  Implementing a sound financial wellness program can help you retain your employees and prevent The Great Resignation from affecting your company.

Notes

1. https://www.bls.gov/news.release/jolts.nr0.htm
2. https://www.onedigital.com/blog/improve-workplace-productivity-financial-wellness/