Financial Wellness Benefits help you compete in a tight job market
It’s harder than ever to attract and retain talent in today’s tight job market. The post-pandemic recovery created nearly 21 million jobs in two years[1] and reduced U.S. unemployment to 3.6%, which was great news for workers but made things extremely competitive for recruiters and companies looking to hire.
In 2021, a record 47 million workers quit their jobs in a phenomenon now known as the Great Resignation.[2] ‘Help wanted’ signs popped up everywhere, as businesses of all sizes found themselves short-staffed and struggling to meet rising consumer demand.
All that turnover is costing employers money. A survey posted on Zippia found that companies lose $11 billion annually due to lost employees and spend on average 6 to 9 months of an employee’s salary to replace them.[3]
So, how can companies retain their most valuable asset, their employees? The answer may include employee wellness benefits, including low-cost loans.
By partnering with employers to offer financial wellness benefits for employees, Kashable is transforming the way people access credit and financial services. Kashable’s low-cost loans are underwritten based on each borrower’s employment history–instead of focusing on their credit score alone–and are repaid automatically through payroll. But the benefit goes well beyond low-cost credit. Kashable’s program also offers other financial wellness benefits, including a free credit monitoring tool, live financial coaching, savings and banking services and a financial literacy library to help employees take control of their finances.
Kashable’s financial wellness benefits help employees meet their immediate needs for financing, even if they don’t have access to bank credit. One-third (30%) of Americans have subprime credit scores[4] so shifting the underwriting to include borrowers’ employment data can greatly help them in their path to financial wellness. This will also help employees in the long term by helping them to establish a credit history, build a financial cushion through access to checking and savings accounts, and learn more about how to manage their financial situation more effectively.
Kashable financial wellness products and services also provide substantial benefits for employers. They help employers attract and retain talent. In our annual survey, we found that 57% of employees stated that access to Kashable increased their chances of remaining with their current employer.[5]In addition, financial wellness benefits increase employee satisfaction and productivity. By helping employees work towards financial stability, these benefits reduce stress and increase employees’ focus on their jobs.
“People are looking for more from their employer, and financial wellness is part of the expectation,” Einat Steklov, co-founder and co-CEO of Kashable says. “We offer a financial wellness benefit that gets employees enough money to make a difference in their life without feeling the pinch.”
Employees use Kashable’s low-cost loans to improve their financial situations in a number of ways. Employees can take out a Kashable loan instead of borrowing from their retirement plans to replace higher cost loans like credit card balances or to cover emergencies, like repairing their car or covering out-of-pocket medical expenses. Our survey also reported that 90% of employees say that having access to Kashable’s financial wellness has helped to reduce their financial stress.[6]
Moreover, financial wellness benefits give employees peace of mind and the ability to control and manage their finances more effectively. Companies that offer financial wellness benefits are demonstrating that they care about their employees and are committed to helping them achieve their full potential, both at work and in other aspects of their lives. It’s benefits like these that give companies an edge in attracting and retaining talent, even during the hottest labor market in a generation.
[1]“The U.S. jobs market continues its strong comeback from the pandemic,” NPR, May 6, 2022. https://www.npr.org/2022/05/06/1096863449/the-us-jobs-market-continues-its-strong-comeback-from-the-pandemic
[2] “The Great Resignation Didn’t Start with the Pandemic,” Harvard Business Review, March 23, 2022. https://hbr.org/2022/03/the-great-resignation-didnt-start-with-the-pandemic
[3] “How Much Can Disengaged Employees Cost Your Business?,” Zippia.com, November 18, 2017.
[4] “Fewer Subprime Consumers Across U.S. in 2021,” Experian, June 7, 2021. https://www.experian.com/blogs/ask-experian/research/subprime-study/
[5] Kashable Customer Survey 2022
[6] Kashable Customer Survey 2022