65% of U.S. knowledge workers are stressed about their finances, negatively impacting their physical and mental health and contributing to an estimated $244 billion in lost productivity annually.* Employers increasingly feel more responsible to support their employees and are turning to financial wellness solutions to help improve their employees’ overall well-being.
Traditionally, programs such as a 401(k) or pension plan have made up the extent of an employer’s financial wellness offering. While retirement planning is an important component of a financial wellness package, it’s just one piece of total financial wellness. Comprehensive financial wellness should address the needs of employees at every stage of life and include financial education, access to financial planners, and a platform to track and manage finances. A total financial wellness program is a key component of an employer’s holistic well-being strategy, providing a distinct recruitment and retention advantage as well as a number of other benefits for the organization.
Before rolling out any new benefit, it’s important to base the program on your employees’ specific needs and challenges. Ask them for their feedback on the types of financial tools and resources that they would find most valuable. This will give you a clearer idea of what you should prioritize and how you should roll it out. You could also assess your employees’ financial literacy to establish a baseline for your financial education resources.
Our 2021 Wellness Barometer Survey revealed that only 20% of employees are financially literate. Launching a total financial wellness program that includes education plus access to a digital platform and financial planners is powerful for helping employees develop strategies to pay down debt, build emergency savings, grow their money, and maximize the benefits you already offer.
Since employees are constantly bombarded with communications, it’s important to develop a strategic rollout and communications strategy that caters to the different ways in which employees prefer to absorb information. A mix of channels, such as video, web-based apps, direct mail, and text will increase the likelihood of your message getting through and employees enrolling in the program.
When introducing any new benefit, use the opportunity to ensure that employees feel understood and cared for. Let them know that their voice has been heard and that you’re offering this new benefit because the company genuinely cares about their well-being. Additionally, help employees understand the true value of the program through continuous education, decision support tools, and targeted messages. For example, retirement related communications to younger employees may focus on learning how to save for retirement, whereas messages geared to older generations may hone in on getting ready to use their retirement benefits. And don't forget to engage your managers—they’re most connected to your employees’ wants and needs. Enlist them to reinforce the importance of the program in 1:1 conversations, taking into account each employee’s value drivers.
Your organization most likely already offers some form of financial benefits like a 401(k) plan, health savings accounts (HSAs), student loan assistance, or debt consolidation. You don’t need to replace these when you implement a financial wellness program. Since your employees may already be taking advantage of these resources, you can use these as a jumping-off point. Incorporate these existing benefits into your overall program and explain how they complement your total financial wellness solution.
A third-party financial wellness provider should educate and coach your employees based on their unique needs and help drive success of the program. Look for a partner to serve as an extension of your HR team, one that will guide you through the launch and beyond. Here are a few key questions to ask when evaluating solutions from a financial wellness company: