Previously, we have discussed how important employee wellness is in the workplace. One area that we have not touched on is financial wellness. Financial stress is one of the most common and top stressors among adults in the US. Concerns caused by financial instability often spill over into other aspects of an employees life, negatively affecting health, productivity, and overall engagement. Providing employees with support for financial wellness can lead to increased productivity, a more engaged workforce, and a more inclusive and equitable workplace.
Here are just a few ways that you can empower your employees with employer-sponsored financial wellness benefits:
1. Financial Education:
Providing employees with access to comprehensive financial coaching or education programs. These programs can cover a wide range of topics such as basic money management skills, retirement planning strategies, and debt repayment strategies. Offering financial education opportunities will enable your employees to feel empowered in making financial decisions, and enhance their financial literacy as they gain the skills to navigate complex financial decisions.
2. Retirement Savings Assistance:
The Secure Act 2.0 otherwise known as the 401(k) bill requires most companies to enroll employees into the companies retirement plan automatically. Offering retirement benefits can help attract and retain top talent, however these programs lack the financial education and budgeting basics that allow employees to feel comfortable in contributing. Providing more education on a current 401K investment plan, and discussing the differences between IRA’s, FSA’s, HSA’s, and other savings account opportunities you might already be offering can be a valuable investment. Additionally, consider offering an incentive such as an employer match on contributions, encouraging employees to invest.
3. Financial Wellness Tools and Apps:
There are quite a few financial wellness tools and apps that are available to employees including budgeting apps, expense trackers, retirement savings calculators, and more. These apps and tools can help employees to achieve their financial goals. Some are specifically designed to help with savings and investing, others offer more education. Here is a short list of 8 tools, and a breakdown of pros and cons.
4. Flexible Compensation Packages:
Flexible compensation packages allow employees to play a larger role in allocating funds towards different aspects of their lives. For example, this may involve offering traditional options such as flexible spending accounts or health savings plans, or more non-traditional options that are becoming increasingly more popular such as reimbursements for childcare expenses and student loan repayments.
To get started, we recommend surveying employees to get a better idea of their specific financial challenges, and to understand what the need is specifically. Before moving forward with any education, we also recommend working with trained financial advisors. You can find helpful resources on the Consumer Financial Protection Bureau website, and of course we recommend partnering closely with both your benefits brokers and HR partners. Reach out to Retain today to schedule a free consultation, we can help tailor your financial education program to meet the needs of your employees.