Amidst competition for talent and high living costs, employee financial wellness has evolved from a mere add-on program to a strategic pillar. These programs have proven effective in reducing stress, increasing productivity, and reducing turnover—especially for Gen Z, who are beginning to dominate the workforce.
OJK data (SNLIK 2024) shows positive achievements in national financial literacy (65.43%) and inclusion (75.02%). However, gaps are still evident among young people (aged 15-25), making workplace interventions increasingly relevant and urgent.
Why is Financial Wellness Strategic for Companies?
There are at least three reasons:
- Increased productivity. Employees who experience financial stress are easily distracted and unable to focus on their work because they are constantly thinking about money problems.
- Stronger retention. Companies that care about the financial well-being of their employees are less likely to experience high turnover rates (although finances are not the only factor).
- Encouraging participation and satisfaction. As a result, employees are willing to contribute more to the company.
Understanding Gen Z: Digitally Literate but Prone to Stress
Gen Z is known to be very digitally savvy. They are very familiar with electronic wallets (e-wallets), paylater, and digital banks. However, this familiarity is not always matched by maturity in managing finances.
Financial anxiety is a global issue that is also relevant in Indonesia, where financial literacy is not yet widespread. Studies show that even though Gen Z’s savings habits and digital literacy are increasing, their consumptive lifestyle and financial stress remain. This is a serious risk that affects their well-being and performance, and even has the potential to increase their turnover.
Developing a Comprehensive Strategy
To have a significant impact, financial wellness must be designed as a comprehensive strategy, not a partial program.
1. Provide personalized and relevant education
Segmentation based on needs is key. For example, for Gen Z aged 18-27, focus on budgeting, debt management, emergency funds, and basic investments.
For young employees who are already married, focus on family protection, education funds, and property installments (if any). As for middle-aged employees, the focus is on investment diversification, tax planning, and retirement preparation. Again, these are just examples. Each individual’s circumstances are different, and the right strategy can also help companies reduce turnover.
Education must be accompanied by access to products and services, such as payroll savings with auto-sweep features to emergency/investment funds; emergency savings programs integrated with payroll; access to independent financial advice; and a benefits marketplace for microinsurance, voluntary pensions, or subsidized education loans.
2. Provide protection
Strengthen benefits that protect employees from unexpected financial shocks, such as family health insurance, paid leave for emergencies, and structured advance salary schemes (not online loans).
3. Build a supportive culture
It is also important for companies to build a supportive culture. Develop an environment where employees feel comfortable discussing financial issues. This can be done through a “Money Month” program. Communicate transparently about benefits and train managers to recognize signs of financial stress in their teams, thereby minimizing the risk of turnover.
4. Integrate with business
The success of this financial wellness program must be linked to metrics that are directly related to business objectives. Both leading and lagging indicators can be used. Leading indicators include a decrease in financial stress scores, increased participation in savings programs, and utilization of counseling services. Lagging indicators include a decrease in turnover (especially among Gen Z), decreased absenteeism, and increased productivity and engagement.
Financial stress is a silent killer of productivity and organizational cohesion. By implementing a comprehensive financial wellness strategy—covering education, infrastructure, policies, data, and culture—companies not only take care of employee well-being, but also build a real competitive advantage: a more focused, stable, and resilient human resource.
One thing to keep in mind is that building a truly effective financial wellness strategy is not an instant job. It requires a deep understanding of employee needs, company culture, and business direction in order to have a real impact on productivity while reducing turnover. If your company needs input or guidance in designing a targeted program, partnering with an experienced consultant such as Jakarta Consulting Group can be a strategic step towards achieving the best results.
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