Employee retention is one of the toughest challenges businesses face today. Talented professionals have lots of choice in competitive labour markets, and organisations are constantly competing to attract and retain their top performers. While strategies like career development programs and flexible work policies have become popular, there is one often-overlooked factor that has a significant impact—financial wellbeing.

In this post, we’ll explore why financial wellbeing is crucial for retaining top talent, and how investing in your employees’ financial health can create a happier, more loyal workforce.

The Competitive Labour Market Struggle

Sectors like retail and care are facing extraordinarily high competition for skilled staff. With record-high vacancy rates, businesses are fighting to attract top talent amidst a limited talent pool.

For organisations in these sectors, offering competitive wages is just the start. It’s no longer enough to simply offer a paycheck—employees are looking for more. They want holistic benefits that improve their quality of life, including their financial wellness.

If companies want to set themselves apart in competitive economies, it’s imperative to address the bigger picture of employee satisfaction—and financial wellbeing is the perfect place to start.

The High Cost of Staff Turnover

Employee turnover is expensive—both financially and strategically. When a high-performing employee leaves, the cost isn’t just restricted to recruitment and onboarding. It also includes the loss of institutional knowledge, the potential harm to team morale, and disruptions in productivity.

The reasons behind high turnover rates can vary, but often include burnout, lack of career growth, and non-competitive rewards—in particular, compensation and financial benefits.

This is where businesses cannot afford to ignore the value of financial wellbeing initiatives. Significantly, companies like Level have demonstrated how targeted financial wellness programs can reduce staff turnover by as much as 50%. By alleviating employees’ financial stresses, businesses can create an environment where people are not just satisfied but also motivated to stay.

How Financial Wellbeing Makes a Difference

1. Reduces Financial Stress

Financial stress isn’t just about money; its ripple effects touch every aspect of an employee’s life. Debt, unexpected expenses, and saving for big milestones create persistent anxieties that can lead to sleep issues, decreased focus, and even poor mental health.  Addressing financial wellbeing isn’t just about being a caring employer; it's about investing in your company’s productivity.

Providing employees with tools like financial education and debt management support can make all the difference in improving their overall wellbeing.

2. Enhances Loyalty

When employees feel like their employer genuinely cares about their needs, loyalty increases. Introducing financial wellness benefits such as On-Demand Pay signals that you’re committed to their long-term success. It builds trust and fosters a stronger sense of belonging—both critical elements in employee retention.

Level’s success stories show that even simple financial wellbeing programs have a profound impact. Employees are more willing to stay with a company when they feel financially secure and valued.

3. Boosts Employee Engagement

Engaged employees are productive employees. Think of financial wellbeing as the foundation upon which engagement thrives. If an employee spends their day worrying about overdue bills or juggling credit card debt, how can they fully contribute to team projects or innovate?

By incorporating financial wellbeing tools into your benefits offering, you help your employees focus on what they do best—while leveraging their full potential.

Retain Top Talent by Investing in Financial Wellbeing

Employees are your greatest asset. A competitive salary is essential, but it isn’t enough to attract or retain top performers in today’s economy. Financial wellbeing is quickly becoming the next frontier in building happy, engaged, and loyal workforces.

By reducing financial stress, enhancing loyalty, and boosting engagement, businesses that prioritise financial wellbeing gain a clear competitive edge in retaining their talent. Companies like Level have already shown us the way, helping organisations cut staff turnover rates by up to 50% through targeted programs.

Don’t wait for your top talent to walk out the door. Make financial wellbeing a core part of your employee retention strategy and create a workplace where bright minds thrive.