Financial wellness has become a major focus in employee benefits. Financial stresses can dramatically impact mental health, seeping into an employee’s professional life and leading to disengagement, higher absenteeism, and increased turnover. The problem has gotten so pervasive that in Bank of America’s 12th Annual Workplace Benefits Report, 97% of surveyed employers said they felt responsible for employee financial wellness. Yet despite that, only 28% of employers offer financial wellness programs, according to the Harvard Business Review.
Offering Health Savings Accounts (HSAs) is a practical solution. As a key component of a comprehensive financial well-being strategy, HSAs can significantly alleviate the financial pressures associated with healthcare, fostering a work environment that promotes lower stress levels and improved productivity. Banks that integrate HSAs into their overall financial wellness programs can provide their business and commercial clients with critical advantages.
Financial Stress and Employee Productivity
The link between financial stress, burnout, and productivity is clear and significant. A 2023 survey by PwC found that 57% of employees cited financial issues as their primary source of stress, with nearly half admitting that it negatively impacts their job performance. Financial strain often leads to heightened anxiety, resulting in burnout marked by emotional exhaustion, reduced productivity, and a feeling of disconnection from work.
When financial concerns burden employees, their ability to focus, solve problems, and engage fully in their roles diminishes. This stress leads not only to higher rates of absenteeism and presenteeism—where employees are physically present but mentally disengaged—but also drives up healthcare costs associated with stress-related illnesses. According to Gallup, 56% of employees who reported experiencing significant stress over the previous day felt disengaged at work.
Easing Financial Burdens with HSAs
HSAs are powerful financial tools that help consumers manage their qualified medical expenses while enjoying significant tax advantages. They are among the only accounts that enable individuals to save for the one expense that most do not plan for – healthcare costs – and to spend from those savings without penalty.
A 2023 study by the Employee Benefit Research Institute (EBRI) found that employees who consistently contribute to their HSAs report significantly lower levels of financial stress, demonstrating how managing medical expenses can reduce anxiety.
Reaping the Benefits
Banks that include HSAs in a comprehensive financial wellness program can simultaneously build expanded relationships with business and commercial clients, gain new retail customers, and begin building trust with the unbanked and underbanked through their affiliation with employer-sponsored benefit programs.
The financial wellness partnership also enables the bank’s business and commercial clients to significantly reduce employee burnout, enhance productivity, and foster a culture of well-being, support, and empowerment. When employees perceive that their employer genuinely cares about their financial health, they are likelier to remain with the organization, which leads to less turnover and a more positive workplace atmosphere. By investing in their employees’ overall financial well-being, companies build a more resilient workforce and lay the groundwork for long-term organizational success.
For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service, and award-winning marketing services.
