Fiscal Fitness at Work: Empowering Employees with Financial Wellness Programs

It may seem like an employee’s financial health isn’t an employer’s concern, but financial wellness can have a major impact on a company’s bottom line. In the years since the pandemic shutdowns, 57% of employees have reported money is a top stress in their life, and 44% say their financial stress has significantly impacted their performance and productivity at work. Financial wellness programs are a useful way to help employees get a handle on their finances, reduce personal stress, and improve overall health and quality of life. These programs are more than a trend; they address a fundamental need. A financially stressed employee is less productive and more likely to experience health issues, which can impact their overall job interest and satisfaction.

Benefits of Financial Wellness Programs

Financial wellness programs are designed to help relieve the financial stresses that distract employees from their work. These tools and resources for managing personal finances can significantly reduce stress, leading to enhanced focus and satisfaction in the workplace. A financially secure employee is typically more engaged, less anxious, and better positioned to contribute positively to their organization.

Program Elements

Effective financial wellness programs typically include a variety of components:

• Retirement Planning: Helping employees understand and manage their retirement savings, including 401(k) plans, can lead to a more secure financial future. Many 401(k) financial institutions offer complementary retirement planning for employees, either one-on-one or via workshops and online courses.
• Debt Management: Offering counseling and resources to manage and reduce debt, including student loans, can greatly alleviate financial stress. There are many community organizations that will partner with employers to provide education and counseling.
• Financial Education: Providing educational resources about budgeting, saving, and investing empowers employees to make informed financial decisions. This can take place through online courses or in-person sessions.
• Personalized Financial Counseling: One-on-one financial counseling can address individual financial situations and goals, offering tailored advice and planning.

Implementation Strategies

Developing and launching a financial wellness program requires a bit of strategy. Workforce Solutions consultants can help you establish goals and select the right elements to best serve your employees. Here are the steps to take to get your program off the ground:

1. Assess Employee Needs: Conduct surveys or focus groups to understand the specific financial challenges your employees face. It may be retirement, debt, or a combination of several challenges.
2. Define Program Goals: Clearly articulate what you want the program to achieve, such as improved employee financial literacy or reduced financial stress.
3. Select the Right Tools and Resources: Choose resources and tools that align with your employees’ needs and your program goals. There are many enterprise tools that help employees track spending, save for emergencies, and automate investments. There are also programs that help employees refinance student loans and auto loans at lower interest rates.
4. Communicate Effectively: Ensure employees are aware of the program and how to access it. Continuous communication is the key to engagement.
5. Encourage Participation: Motivate employees to participate through incentives or by integrating the program into the company culture.

Evaluating Impact

How will you know whether the program is working? Periodically measure changes in employee behavior such as tracking participation rates, surveying employees for feedback, and anonymously asking about changes in financial behaviors like increased savings or reduced debt. Employee satisfaction surveys can also point to whether the program is meeting its goals.

Financial wellness programs are more than just an employee benefit – they’re an investment in the health and productivity of your workforce. By providing employees with the resources and support they need to manage their financial lives, companies can foster a more engaged, focused, and productive company culture. Over time, financial wellness programs will likely become an essential part of employee benefits packages, reflecting a concern for employee health and a commitment to their well-being.

To start a financial wellness program at your company, contact our consultants! We can help establish a framework and locate resources to help your teams.