In the past five years, the United States has transitioned through several challenging stages. The pandemic caused many of these shake-ups, particularly the Great Resignation, where millions of Americans resigned from their jobs and moved to companies with better pay or benefits.
Although these events are in the rearview mirror, American workers and companies looking for staff are struggling to overcome the past. While quitting has reached pre-COVID levels, many workers are still unsatisfied with their workplaces. According to a 2023 study, only 33% of employees were engaged. This figure is slowly dropping as organizations realize the importance of well-being initiatives and other incentives for keeping morale high. However, actively disengaged employees can cost companies approximately $1.9 trillion in lost productivity. As industries like healthcare face ongoing turnover issues, leaders should explore the value of introducing novel programs like socially responsible loans. Although this is not a silver bullet for the industry’s multi-faceted challenges, it can dramatically improve employee loyalty while reducing associated turnover costs.
From 2016 to 2022, hospital staff turnover rates rose dramatically. These figures have slightly reduced recently, but retention and loyalty remain a problem. The 2024 NSI National Healthcare Retention & RN Staffing Report showcases that turnover has slowed in 2022, but labor shortages, employee burnout, and retirement are only increasing. The problem has exacerbated to concerning levels as statistics suggest an average hospital has replaced 100.5% of staff in the last five years. More data from the 2024 NSI report highlights that 39.8% of new hires left within one year of starting their position. Additionally, over half of the staff quitting spent less than two years in their role. Shockingly, the study states the average hospital loses between $3.9m – $5.8m/yr in turnover related cost and each percent change in turnover will cost/save the average hospital an additional $262,500/yr. This trend underlines the healthcare industry’s urgent need to find solutions that stop financial losses and improve company culture.
Since turnover in the healthcare industry is a complex problem, there is no single strategy for resolving it. However, socially responsible loans are an innovative offering that may alleviate employee financial stress and encourage a boost in loyalty. According to 2023 research, about 60% of employees are stressed about their finances. This concern can affect mental health, sleep quality, and even self-esteem. Thankfully, employer-sponsored financial wellness programs can resolve some of these challenges. These initiatives have already been proven to increase credit scores, engagement, loyalty, and retention. When used in sectors like healthcare, where employees are battling financial worries and burnout, employers can support staff on their path to security.
Furthermore, a FED survey anticipates that loan demand will increase despite stricter credit standards across the board. In this landscape, BMG Money emerges as a trustworthy partner for organizations looking to improve employee satisfaction.
In a study regarding a health system with over 13,000 employees in Florida, the overall conclusion was: BMG Money’s LoansAtWork participants had a lower attrition rate compared to the general employee cohort. The program’s participants had a higher retention rate of 89.8% compared to the overall retention rate of 82.3%. The attrition rate among loan participants is only 10.2%, compared to the general attrition rate of 17.7%. These statistics indicate a 1.2% reduction in annual workforce attrition, making the BMG Money’s LoansAtWork program an effective tool for retaining employees.
BMG Money is a financial wellness provider that provides access to financial literacy, free credit monitoring, savings education programs, and access to emergency loans to help employees experiencing financial hardship. The company enables employees to manage emergency expenses with fixed and affordable payments and access socially responsible and reasonably priced loans. BMG Money has close to 100 hospitals, education, and governmental clients, with many more to come. Since 2009, BMG Money has serviced tens of thousands of loans, issuing $3.8 Billion in fixed-rate loans to employees who otherwise would have fallen victim to predatory payday loans. BMG Money works with organizations to tailor the program to be as effective as possible. This includes how to communicate the benefit being offered to employees, how to offer training and how to operationalize the program. This program comes with zero cost or risk to the employer.
BMG Money’s mission is particularly crucial in Texas, where predatory payday lending rates average 664%. The collaboration between Texas Hospital Association and BMG Money will provide employees of THA member organizations access to affordable, socially responsible loans regardless of their credit scores.
BMG Money’s LoansAtWork program is a voluntary benefit designed to boost employee retention and satisfaction and encourage loyalty at the workplace, all at no cost to the organization. BMG Money works directly with hospitals and health systems to customize lending programs for their employees. BMG Money’s affordable loans and financial education help reduce employee financial and mental distress and distractions, which can enhance the quality of care.
“BMG Money is thrilled to partner with THA. We are excited to be part of an association whose goals are to find cost-saving solutions for its member organizations and affiliates to retain healthcare and non-healthcare professionals aligned with the solutions we have to offer,” said Tom McCormick, co-CEO of BMG Money.
“Employee satisfaction and retention is essential to our members,” said John Hawkins, President and CEO, of The Texas Hospital Association. “We are pleased to partner with BMG Money to help our members support their employees’ financial wellness and education through this important program.”
Financial wellness programs are expected to become more popular in the coming years. Millennials and Gen Z are particularly interested in these initiatives as they desire employers who can provide tools in addition to a salary. According to a recent Bank of America study, 76% of employees say companies are responsible for providing financial wellness benefits, and 96% of employers agree – yet only 21% of companies provide financial education. Additionally, one in four employees have no emergency savings, and 57% cannot afford a $1,000 emergency expense. As a result, more and more companies are leveraging BMG Money’s financial wellness benefits to address the financial needs of their employees and help prevent these hardworking employees from falling victim to a high-interest predatory payday loan. As these programs become more widespread, employees can weather economic uncertainty and build stronger relationships with their employers.
About BMG Money
BMG Money is a leading financial wellness provider that offers LoansAtWork and free financial literacy programs to alleviate the financial and emotional stress threatening healthcare employees. Both programs are available at no cost or risk to the participating organizations. To learn more, visit the BMG Money, Inc. website and contact Senior Director of Healthcare Partnerships Amar Sharma at [email protected] or (607) 205-7884.