New Questis Study, ‘Navigating the Great Resignation – How Financial Empowerment Can Help Companies’ Finds That Companies Embracing Financial Wellness Decrease Turnover by 33%
Charleston-based workforce financial empowerment company Questis has published a case study on employee retention and turnover, ‘Navigating the Great Resignation: How Financial Empowerment Can Help Companies’. The study offers a quantitative and qualitative analysis on the costs of hiring and examines the relationship between employee benefits and productivity, defining clear strategies on how companies can decrease turnover in the workplace.
“Turnover is widely considered a negative performance indicator. It is costly and disruptive.” said John Tabb, Co-Founder and CEO at Questis. “When employees are unsatisfied with the culture or management, inadequate compensation or benefit packages or lack mobility in their current position, the company suffers. This has a direct impact on productivity and ultimately, profitability.”
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As resignation rates have doubled year-over-year due to closures and financial hardships caused by the global pandemic, hiring managers are actively seeking solutions to reduce turnover. As a problem worthy of a solution, Questis found that businesses that help their employees better manage their personal finances have a considerable advantage in employee retention.
The study showed that companies embracing financial empowerment through employee benefit programs, defining clear incentive strategies and providing access to educational resources or personal finance coaching were able to reduce turnover by 33%.
“Whereas quality recruitment remains a top concern for hiring managers across industries, it’s no surprise that companies are more successful in recruitment and talent acquisition when they put forth a significant effort to make their employees feel valued in the workplace,” says Tabb. “However, there is a real problem in retaining that talent. This study offers tangible solutions on how companies can achieve this by embracing financial wellness- helping employees eliminate financial stress which leads to real results: a better synergy and better corporate performance across the board.”
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One of the main facets of successful financial empowerment solutions is customization, as the study found that employees were more likely to follow through with the programs when they were the primary partner in developing their plan.
Dr. Martha Menard, Director of Coaching at Questis added, “When you include your employees in the process of creating their own roadmap to financial empowerment, you have a greater impact and better results. It’s true— employees are the most important asset in the workplace. What’s more impactful in reducing stress than offering a personalized solution that lets the individual have a direct say in how they can achieve their financial goals? While we have expertise in addressing financial concerns, the individual is the expert on their situation, motivation, and resources they have to address those concerns.”
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