Five ways to boost employees’ financial wellness
Worries about money can bring stress and become a distraction that impacts productivity. Helping workers navigate the topic of financial wellness doesn’t necessarily require an overwhelming investment of time on your part, however.
When it comes to helping workers feel more comfortable with financial issues, you may have more resources at your fingertips than you realize. You likely have information that can help you pinpoint areas of concern, as well as access to people who can fill the knowledge gap for your workforce.
Make sure you’re not overlooking information from these sources:
- Loan data from your 401(k) program. How many employees are taking loans from their 401(k)? What are the loan balances? Are they missing payments? If this is an area of concern, work with your benefits provider to educate employees on the topic.
- 401(k) contribution data. How many employees are contributing at the highest matching levels? Are they increasing their contributions over time? If employees are not taking advantage of this benefit, communicate the advantages of participating to the full extent possible. Perhaps some of the 401(k) information you provide to new employees could be periodically shared with existing workers as a reminder of the benefits of the program.
- Number of employees choosing savings auto deposit. If you offer employees the opportunity to deposit some of their paycheck into a savings account (rather than a checking or debit account where it can be spent more easily), are they taking advantage of this? If few are choosing this option, your financial services provider may have some information you can share with workers on the advantages of savings accounts.
- Your life insurance provider. Life insurance is a common employee benefit, but employees may not understand why it’s valuable. Have a representative from your life insurance provider stop by for a lunch and learn session. Record the session or share it online to make it accessible to remote workers and those who don’t work the day shift.
- Your employee assistance program (EAP) provider. More EAP programs are including a financial wellness component. Contact your provider about resources they can share with your workers.
Offering more financial education to your workers can help them understand the importance of saving, paying down debt, and setting aside money for retirement. It can also ease their financial worries and make the workplace more productive.
SURVEY SAYS...
Another way to focus on your workplace financial wellness strategy is with an anonymous survey.
This allows workers to privately share information about their perceived level of financial well-being and their top areas of concern.
A survey that asks questions relating to financial literacy could also help you determine where to direct educational efforts.