Income Advance Reaches 100+ Vermont Businesses: The Demand for Financial Wellness Programs at Work
At the Rhino Foods Foundation, our mission is to spread innovative workplace practices that champion employee financial stability and make good business sense. Our cornerstone program, the Income Advance program, supports financial empowerment for employees and reduces financial stress. Since its inception in 2007, the Income Advance program has demonstrated remarkable growth and impact. With 100 businesses in Vermont participating, over $2 million in loans distributed in 2023 alone, and more than 1,400 Vermont workers benefiting, the program's success underscores its importance. This progress highlights the critical need to address the financial stress employees face and validates the effectiveness of financial wellness programs.
This growth underscores the critical need to address the financial stress employees face. Implementing financial wellness programs like Income Advance can significantly enhance employee well-being which is a benefit to the entire organization. By acknowledging and addressing employee needs, companies can create a more inclusive and supportive environment.
Understanding the Financial Strain on Today's Workforce
Leaders often underestimate the number of employees living paycheck to paycheck and experiencing financial stress. According to the Economic Policy Institute, CEO compensation has skyrocketed by 1,209.2% since 1978, while typical worker compensation has only increased by 15.3%. This stark difference highlights a potential disconnect, suggesting that leadership may be unaware of the critical need for financial wellness programs to alleviate employee financial stress.
In the United States, around 53 million workers, or approximately 44%, are low hourly wage earners, with a median hourly wage of $10.22 and full-time annual earnings of about $24,000. While financial stress is often associated with lower-wage workers, it also significantly impacts those making over $100,000 annually, making financial stress the number one cause of stress among American workers.
To address this widespread issue, implementing programs like Income Advance can provide crucial support. Below is a breakdown of the scale of individuals affected by financial stress that Income Advance would help support.
Demand for Financial Wellness in the Workplace
Clearly, financial stress significantly affects a large portion of employees daily and, consequently, impacts businesses. About 82% of employed Americans report often thinking about personal finances at work, costing employers an estimated $664 billion in lost productivity. Employers are increasingly aware of how financial stress affects their businesses and feel a growing responsibility to implement financial wellness programs. However, while 96% of employers acknowledge their responsibility for employee financial wellness, only 28% currently offer such programs. Proper financial wellness programming can improve workplace culture, increase productivity, reduce absenteeism and turnover, enhance employee engagement and well-being, and positively impact the company's bottom line.
Growing Our Impact
Looking ahead, the Rhino Foods Foundation is committed to further expanding the Income Advance program. By continuing to support more businesses and reaching even more employees, we aim to deepen our impact and contribute to creating financially resilient communities. As we plan for the future, we envision the Income Advance program becoming a standard offering in workplaces across the nation, ultimately fostering a more inclusive and supportive environment for all employees.
The growth and future expansion of the Income Advance program reflect our dedication to enhancing employee well-being and supporting organizational success. By addressing financial stress head-on, we empower employees, improve workplace culture, and drive positive outcomes for businesses.
Interested in bringing Income Advance to your organization? Reach out to our Program Manager, Chris Hynes, chynes@rhinofoodfoundation.org, to learn more!