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“We hear time and time again that employees are more motivated and productive when they receive ample employer support for their well-being,” said Lorna Sabbia, head of workplace benefits at Bank of America. “Investment in employee well-being could be a potential investment in your company’s profitability.”

A comprehensive benefits program can produce a variety of positive outcomes for employees and their employers. Here are some of the most valuable results of developing a robust benefit program:

Increased productivity

Taking care of employees improves productivity (by about 13%, according to Harvard Business Review), along with recruitment efforts and retention. It makes sense: A happier, financially healthier workforce can bring their best, most efficient selves to work, knowing that they are meeting their long-term financial goals and being supported while they create value for their employer.

Decreased turnover and reduced financial risk

Companies that prioritize workplace benefits are more likely to retain talent – and those who don’t are likely to feel the negative impacts of turnover. Bank of America data shows that as many as four in 10 employees say competitive workplace benefits are the reason they stay with their employers. Estimates vary on how much it costs to replace an employee, but most figures place it at 50% - 200% of that employee’s salary, depending on seniority and other factors. Not only is losing an employee costly, but also risks negatively impacting company culture by losing well-liked employees.

Offering employees financial benefits like 401(k) plans, defined benefit and health savings accounts, employee banking, and investing options, alongside other benefits like lifestyle spending accounts (LSAs), equity awards, and debt assistance, can provide employees with tools to build financial wellness and save for their futures. In addition, in-person guidance as well as educational resources like retirement calculators, scores to measure and improve financial wellness, and retirement planning resources can go a long way to improve employees’ financial standing, which can in turn help them reduce personal stress at work.

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Improved recruitment efforts

Having a well-defined and promoted benefits package also helps companies find the right talent to supplement their existing employee workforce. About 66% of employers say they have experienced an improved ability to attract talent in the last year, with better workplace benefits as the top factor. In a competitive labor market, workplace benefits are a competitive advantage to recruit the best talent available.

Increased employee satisfaction

Research shows that workplace benefits programs that cater to employees’ financial health and overall well-being are often the most impactful. A Bank of America study found that 8 in 10 employers see higher employee satisfaction when offering resources to manage overall well-being. SHRM likewise found that 60% of employees cited benefits as a very important contributor to job satisfaction. Economic concerns are top of mind for employees, with 77% of employees reportedly feeling stressed about the current economy. Helping employees better understand and manage their finances could alleviate some of their larger livelihood worries and keep them more satisfied at their current company.

“Workplace benefits are vitally important for recruitment and retention,” Sabbia said. “By investing in employee happiness, financial well-being, and long-term goals through various workplace programs, employers have an extremely effective tool for maintaining and attracting the best talent in the market today.”

“Our goal is really to be that one-stop shop for our clients, so they can consider what workplace benefits and tools might help them drive their organizational goals forward in the best way possible” Sabbia said.

Learn how Bank of America can help upgrade your workplace benefits today.

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Companies that care for their workforce’s holistic health are not just driving value for their individual employees — they are contributing to the company’s bottom line. That value shouldn’t be underestimated: A recent McKinsey Health Institute study attributed $3.7 trillion to $11.7 trillion of global economic value tied to holistic employee health. A comprehensive workplace benefits package that includes financial benefits alongside health and wellness options can help companies stand out, improve their standing among the talent pool, and produce more motivated, loyal workers. Company decision-makers looking to make meaningful investments in their workforce that lead to increased productivity and employee loyalty should consider improving their workplace benefits package, especially financial ones. Helping employees improve their finances will engender goodwill and allow employees to focus on their work instead of financial stressors at home. A KPMG study found that investing in the right benefits package can ultimately deliver more value than cost through increased productivity and reduced recruitment costs.

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How a robust workplace benefits program brings value to employees and employers

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Evaluating your benefits and choosing the right provider

Just as important as offering these programs is having benefits managers regularly and formally evaluate their success to see if they are beneficial for your employees in practice. Selecting the right benefits provider is invaluable on the journey to creating a workplace benefits suite of solutions that is both cost efficient and drives holistic health for employees. Bank of America offers an integrated platform that helps employees identify, personalize, and track their goals across their full financial lives — providing support for benefits managers along the way.

Potentially improving company ROI

All of the above could contribute to the ultimate KPI: making the company more profitable, efficient, and a better place to work for employees. Retaining loyal employees, attracting new talent, and increasing the productivity of existing employees all can improve the company’s bottom line, usually at multiples of what it might cost to enhance employee benefits. And while most companies already offer some form of benefits, less than half of companies surveyed say they offer financial wellness programs. The disconnect is striking when considering almost all employers believe they are responsible for their employees’ financial wellness.

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Defined contribution (401(k))

Includes plan administrative support, robust employee education, guidance and communications, open investment architecture, fiduciary advisory services, and more.

Defined benefits

Comprises flexible pension solutions across investment consulting, discretionary investment management (OCIO), trust, custody, administration, and pension payments.

Stock plan services

Provides options such as non-qualified and incentive stock options, performance shares and units, restricted stock and units, dividend equivalent units, employee stock purchase plans, and more.

Health benefits

Includes a health savings account (HSA), high-deductible health plan (HDHP), flexible spending account (FSA), lifestyle spending account, and commuter benefits.

Employee banking and investing

Includes access to specialists that provide ongoing financial education and guidance, such as banking and lending solutions from Bank of America and investing solutions from Merrill.

Executive services

Offers tailored and flexible wealth management solutions—from sophisticated banking and investing solutions to trust and estate-planning services.