Compensation & Benefits
Employee Wellness - a key indicator of satisfaction and retention
Our research indicates employers who feel more responsible for employees’ well-being fare better themselves; we also found that employers who feel very/extremely responsible for the financial wellness and mental health of their workforces report their employees are more satisfied on average than their peers. In addition, employers who feel very/extremely responsible for the mental health of their workforce report higher retention rates compared to their peers.
Despite these outcomes, one in three companies globally feel minimally responsible for the wellness of their employees. This highlights a missing connection between emphasising employee well-being and employer responsibility for many companies and it may underscore an opportunity for employers to see improvements in talent-related priorities by shifting their mindset and role in employees’ well-being.
Financial Wellness Elements (% Selected)
Source: The Fidelity Global Employer Survey, 2022. Respondents were asked: In your company’s view, what does it mean for employees to be “financially well”? Select all that apply. Base: Total Respondents (1000). Breadth of definition does not predict retention rates.
Broadening the financial wellness definition could impact attraction
Of further interest was the connection between the breadth of employers’ perception of financial wellness versus their attraction rates.
- A narrow view - negatively associated with attraction rates, especially true of those with a North American presence.
- A broader view - positively associated with attraction rates
This suggests that employers who integrate employee financial wellness into culture, through a broader definition of financial wellness and potentially more employee benefits related to wellness, may positively impact a prospective employees view of the company.
Source: The Fidelity Global Employer Survey, 2022. Respondents were asked: In your company’s view, what does it mean for employees to be “financially well”? Select all that apply. Base: Total Respondents (1000). No significant differences based on headquarter locations, other regions, global footprint, firm size, or revenue. Breadth of definition does not predict retention rates.
Globally, financial wellness is an important and large-scale challenge for employers, requiring an empirically sound and operational approach to defining and measuring financial wellness. Learn more about Fidelity’s approach to financial wellness globally.