Promoting Financially Fit Employees
In recent years, wellness has become a focal point for employers and for good reason – improving the health and wellness of their workforce yields a multitude of benefits. While the link between physical health and wellness programs is clear, there is a new kind of wellness that can have a profound impact on employees – financial wellness.
One in five employees report that issues with personal finances have been a distraction at work, and 37 percent say that at work each week, they spend three or more hours thinking about or dealing with issues related to their personal finances.* Financial wellness programs aim to increase employees’ ability and willingness to carry out budgeting and saving, and employees who are financially empowered can come to work with less stress, greater focus and mental clarity.
So how do employers put an action plan in place to promote financially fit employees? Offering educational resources, communication programs and savings plans are great, but unlikely to be effective if they don’t directly connect with employees’ interests, needs and concerns.
We suggest promoting financial wellness in a customized, goal-centered and interactive approach. Reaching employees through a variety of outlets such as video content, education portals, webinars, provider-resource demos and in-person session opportunities gives employees ample choice in how they receive financial information. Furthermore, the content of these offerings should be properly aligned with the employee population.
The last thing employees want is another run-of-the-mill retirement presentation, but varied communication offerings and interactive meetings can be a great way to help employees strengthen their financial knowledge on key topics, such as how much to save, how saving can fit into their current take-home pay and budget, asset allocation and avoiding common saving pitfalls.
Frame these topics in a way that helps employees understand them within the context of both their current financial situation and the implication on future retirement goals. It’s not enough to tell employees they need to save – instead, employees should be shown how they can save without putting their current financial situation in jeopardy and why it’s important.
To learn more about how to best integrate financial wellness principles into your retirement plan, contact a member of the Assurance Financial Services team.
*PricewaterhouseCoopers, “Employee Financial Wellness Survey,” 2015, page 11.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Assurance Financial Services, Ltd and Assurance Agency, Ltd are not affiliated with Kestra IS or Kestra AS. Assurance Financial Services, Ltd is a wholly owned subsidiary of Assurance Agency, Ltd.
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