Financial Wellbeing Benefits Your Company Should Consider Implementing
3 things employers can do to support their employees’ financial wellbeing
Posted on 11-24-2021, Read Time: Min
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With the holiday shopping season fast approaching, many individuals are taking time to sit down and evaluate their personal financial situations. And after the pandemic affected the financial health of workers globally, financial planning shouldn’t just be a personal issue—it should be an employer concern, as well.
Comprehensive financial benefits programs are proven to drive increased productivity, employee satisfaction, and employee retention—helping your company culture and bottom line in the long run. In a recent survey from the Consumer Financial Protection Bureau, 61% of human resources professionals say that financial stress has an impact on work performance and 57% of employers say financial education boosts productivity.
A study by FinFit revealed a nearly 20% increase in employee retention across salaried and hourly employees when organizations offered financial wellness assistance. And Statista shared that 53% of employees in the United States would feel less stressed about their overall financial situation if their employer offered them financial wellness benefits.
Sequoia’s 2021 Employee Experience Benchmarking Report reveals 65% of companies plan to focus their efforts within the next 12 months on financial education. The pandemic brought financial wellness programs to the forefront of the conversation, and now is the time to implement these benefits at your company. Here are three things employers can do to support their employees’ financial wellbeing:
1. Enhance Your 401(k) Plan
If you’re not already offering a 401(k) plan for your employees, this is a critical first step in supporting their financial stability. It tells them you’re not only investing in them today, but throughout their lives—which can drive employee satisfaction and retention. If your 401(k) program is already in place but not achieving your utilization goals, automatic enrollment is an effective way to increase participation.
You may also consider enhancing your plan with personalized communications strategies. If you’re sharing your company’s 401(k) plans via email or a new hire packet (which the Employee Experience Benchmarking Report reveals are the overwhelmingly most popular tactics), consider an approach that fosters a two-way conversation so employees feel empowered to control their finances. Depending on the size of your company, this could be done with a live webcast, video, or 1:1 meeting with a financial advisor to give employees the hands-on support they’re looking for.
You may also consider enhancing your plan with personalized communications strategies. If you’re sharing your company’s 401(k) plans via email or a new hire packet (which the Employee Experience Benchmarking Report reveals are the overwhelmingly most popular tactics), consider an approach that fosters a two-way conversation so employees feel empowered to control their finances. Depending on the size of your company, this could be done with a live webcast, video, or 1:1 meeting with a financial advisor to give employees the hands-on support they’re looking for.
2. Financial Education
Unfortunately, many employers don’t offer financial education resources beyond their 401(k) options. In fact, only 21% of the people-driven companies surveyed in the report offer continued education assistance. However, there are a variety of no- to low-cost approaches to offering financial education.
In-house experts, such as your 401(k) providers, HR leaders or CFO, can host webinars or workshops sharing financial wellness strategies and best practices. Or, you can reach out to outside experts, such as a stock/equity vendor, financial consultant, or a credit union to offer educational sessions or resources. Additionally, there are free digital platforms, such as Mint, as well as at-cost online platforms offering on-demand continuing education for your employees.
If you have a budget, it can be worth exploring an outside financial wellness program to benefit your employees. With user-friendly interfaces and money management resources, it’s a great way to offer consistent support.
In-house experts, such as your 401(k) providers, HR leaders or CFO, can host webinars or workshops sharing financial wellness strategies and best practices. Or, you can reach out to outside experts, such as a stock/equity vendor, financial consultant, or a credit union to offer educational sessions or resources. Additionally, there are free digital platforms, such as Mint, as well as at-cost online platforms offering on-demand continuing education for your employees.
If you have a budget, it can be worth exploring an outside financial wellness program to benefit your employees. With user-friendly interfaces and money management resources, it’s a great way to offer consistent support.
3. Offer Personalized Credit and Debt Counseling
Few things weigh more heavily on employees than mounting debt and bills—whether it’s paying off college loans, credit cards, or mortgage payments. The Federal Reserve reports that U.S. non-mortgage consumer debt has reached $4.2 trillion, and according to a recent Capital One CreditWise survey, 73% of Americans rank their finances as the number-one stress in their life.
And unfortunately, that pressure can push employees to look for new career opportunities. When consistently struggling with financial stress, individuals are more eager to seek out higher paying positions—meaning your people, who are your number one investment, are more likely to leave the company.
Credit and debt counseling can be provided in a variety of different ways, from 1:1 sessions to webinars to online resources. The more personalized these programs are, the more connected your employee will feel to the company.
Although financial wellbeing is critical year-round, the holiday season is a reminder to invest in the people who make companies great. With the right resources, HR leaders can empower employees to confidently make informed decisions around their financial health that ultimately increase job satisfaction.
And unfortunately, that pressure can push employees to look for new career opportunities. When consistently struggling with financial stress, individuals are more eager to seek out higher paying positions—meaning your people, who are your number one investment, are more likely to leave the company.
Credit and debt counseling can be provided in a variety of different ways, from 1:1 sessions to webinars to online resources. The more personalized these programs are, the more connected your employee will feel to the company.
Although financial wellbeing is critical year-round, the holiday season is a reminder to invest in the people who make companies great. With the right resources, HR leaders can empower employees to confidently make informed decisions around their financial health that ultimately increase job satisfaction.
Author Bio
Molly Knapp is the Vice President of 401(k) Services at Sequoia. Visit https://www.sequoia.com/ Connect Molly Knapp |
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