Supporting Employees with Financial Wellness: An Employer's Guide

BrightPlan Team

BrightPlan's 2024 Wellness Barometer Survey, conducted to provide insights into financial wellness in the workplace, revealed (unsurprisingly) that financial stress has a significant impact on employee performance and overall well-being.

For employers, it's an opportune time to nurture employee financial wellness by providing resources and tools that can support their financial well-being. By taking proactive steps, such as promoting financial wellness programs and providing personalized financial advice, employers can empower their teams to not only improve their financial well-being, but their well-being overall.

Promote Financial Wellness Programs

One of the most impactful ways to support employees during Financial Wellness Month is through the promotion of financial wellness programs. The Wellness Barometer Survey reveals that 81% of employees feel that financial stress directly impacts their productivity at work. When employees are preoccupied with financial concerns (such as managing debt, saving for retirement, or simply making ends meet), they lose focus on work.

Financial wellness programs can mitigate this stress by providing the necessary tools and resources employees need to manage their finances more effectively. These programs may include financial coaching, access to budgeting apps, and workshops on financial literacy. By investing in these programs, employers create an environment where employees feel empowered to take control of their financial futures. Additionally, reducing financial stress through wellness programs can lead to better engagement, increased job satisfaction, and improved retention rates. The more secure a person feels with their finances, the more likely they are to remain in their current role.

For companies looking to support their employees' financial wellness, it's important to offer programs that are comprehensive, covering a wide range of topics from basic budgeting to advanced investment strategies. This holistic approach ensures that employees across all stages of financial health benefit from the program.

Provide Financial Education

The demand for financial education in the workplace is growing, and the numbers back it up. According to the 2024 Wellness Barometer Survey, 75% of employees desire more financial education from their employers. Many employees, particularly Millennials and Gen Z, are navigating financial complexities they weren't adequately prepared for, such as managing student loans, understanding retirement options, or figuring out how to invest. Without proper guidance, these challenges can feel overwhelming.

Offering educational workshops or seminars on financial topics like budgeting, saving, and investing is one of the best ways employers can improve employee financial literacy. Educational sessions can be tailored to meet the specific needs of different demographics within the workforce. For instance, younger employees may need guidance on managing debt and building credit, while older employees may benefit from seminars on retirement planning and investment strategies. Providing access to these types of resources, especially during Financial Wellness Month, shows a genuine commitment to employee well-being.

Personalized Financial Guidance

While financial education is critical, generic advice often falls short of addressing a person's specific financial needs. This is where personalized financial guidance comes in. The Wellness Barometer Survey highlights that more than half of employees (56%) seek one-on-one, personalized financial advice, particularly in areas such as retirement planning or managing debt.

Personalized financial consultations give employees the opportunity to receive tailored advice that fits their unique financial situation. These individual sessions allow employees to discuss their personal financial goals, whether it's buying a home, saving for their children's education, or simply getting a handle on everyday expenses. By offering access to certified financial planners (CFP™️) other financial experts, companies provide valuable support that helps employees feel more in control of their financial futures.

Incorporating one-on-one financial guidance into the overall financial wellness strategy not only shows that an employer cares about their team members on a personal level, but also helps foster trust and loyalty. Employees are more likely to stay with a company that invests in their long-term financial health.

Emphasize Financial Goal Setting

Financial goal setting is a powerful tool that can help employees feel more in control of their finances. The survey data shows that 65% of employees believe that achieving their financial goals would reduce stress. Employers can play a crucial role in helping employees set and track these goals.

Encouraging employees to define clear financial objectives -- whether it's paying off debt, building an emergency fund, or saving for a significant purchase -- gives them a sense of purpose and direction. Employers can facilitate this process by providing goal-setting templates or access to apps that track progress towards financial goals. Additionally, financial coaching sessions can guide employees in creating realistic, achievable plans that work for their individual situations.

By emphasizing financial goal setting, companies help employees build confidence in their financial future and foster a culture of proactive financial management. When employees have clear goals and a pathway to achieve them, they feel more secure and motivated, leading to reduced stress and improved focus at work.

Integrate Financial and Mental Health Support

Financial stress and mental health are closely intertwined. Nearly 70% of employees report that their financial situation affects their mental health. This connection cannot be ignored, and employers who recognize the link between financial stress and mental well-being are better positioned for holistic support.

Employers can connect financial and mental health support by offering comprehensive wellness programs that address both aspects. This could mean providing access to financial counseling alongside mental health resources, such as stress management workshops, therapy, or mental health apps. When employees feel supported in both their financial and mental health, they are better able to manage stress and maintain a healthy work-life balance.

By creating an environment where employees feel comfortable seeking help for both financial and mental health challenges, companies can reduce burnout and foster a more resilient, motivated workforce. Integrating these types of wellness initiatives not only improves employee well-being but also demonstrates that the company cares about the overall health of its team members.

With financial stress affecting so many employees, there is a prime opportunity for employers to take meaningful steps in supporting their employees' financial well-being. By promoting financial wellness programs, offering financial education, providing personalized financial guidance, emphasizing goal setting and integrating financial and mental health support, companies can make a significant impact on their employees' lives.

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