To be human is to worry about money. It doesn’t matter how old you are or your background; if you’re an adult in America and you’re not worried about your finances, you’re the exception.
According to a recent Capital One and the Decision Lab survey, more than three in four Americans (77%) feel anxious about their financial situation. Furthermore:
- 58% say finances control their lives
- 52% have trouble controlling their money-related worries
How will I make rent this month? How will I pay my mortgage? Am I saving enough for retirement or my child’s education? Will I ever pay off my student loans? Can I afford a serious illness or accident?
These financial concerns consume your company’s employees, and they are only getting louder as the cost-of-living climbs. As the financial stress accumulates, it seeps into other aspects of your employees’ lives and work. According to the same study cited above:
- 43% of Americans feel fatigued due to financial stress
- 42% find it difficult to concentrate at work
- 41% say financial stress interferes with their sleep
In recent years, HR teams have begun recognizing financial anxiety’s profound impact on their employees’ wellbeing, health, productivity, and focus. They have also concluded that employers can do more to help their employees gain control of their finances beyond providing fair salaries and matching 401(k) contributions.
This is the idea behind financial wellness, which is now seen as a pillar of overall wellness, just as important as nutrition, exercise, and mental health. Companies have found innovative ways to help employees learn to manage their money, save for their goals, invest wisely, budget, and pay off debt.
Below are a few financial wellness ideas to consider adding to your employee wellness program. Looking for more corporate wellness program ideas? Check out our definitive guide.
1. One-On-One Financial Counseling
One of the reasons financial issues are so stressful is because they’re so confusing. 401(k)s, IRAs, HSAs, APR — and that’s just the terminology. Sometimes it seems you need an accounting degree just to know how to make the most of your paycheck.
According to a 2021 survey, one-third of employees want their employers to provide access to unbiased financial coaching. One-on-one financial counseling puts your employees in touch with financial experts who can demystify complex financial concepts, assess your employees’ current spending habits, and help them plan to achieve their goals.
Free retirement counseling is a fairly common financial wellness benefit, but there are many more ways financial advisors can help employees. For example, employees at the beginning of their careers might need a plan to pay off their student loans. Mid-career employees might be looking for investment tips or information on setting up college savings accounts.
One-on-one financial counseling can be done in person or via video chat. Many employee assistance programs (EAPs) also offer free financial counseling.
2. Discount Programs
While inflation has leveled off somewhat, the cost-of-living in most parts of America remains astronomical. For many families, every dollar counts. Discount programs can help your employees save on everything from furniture to vacations and, thus, have more money left over to save or spend on expenses like housing or healthcare.
Employee discount programs can take several forms, including merchant discounts (discounts offered by specific brands), online discount platforms, and employee purchasing programs, which let employees set aside money from their paychecks for big-ticket purchases.
3. Digital Financial Wellness Tools
As noted above, access to human expertise is an essential element of financial wellness, but employees also want the convenience and number-crunching insights that come with digital tools. According to Bank of America’s 2022 Workplace Benefits Report:
- More than half (52%) of employees prefer to use a digital app to manage their finances
- Three out of 10 employees want access to financial advice through a digital portal
Digital financial tools have come a long way. It’s not just about checking your balance anymore. People use apps and websites to track spending, research investments and account types, budget, and chat with financial advisors.
The latest generation of financial wellness tools uses artificial intelligence and machine learning to help build personalized savings plans for employees based on their age, habits, career plans, and other characteristics.
There are numerous digital financial wellness tools and apps to choose from, covering a wide range of costs and capabilities. Some are focused on individual financial goals — such as paying for college — while others serve as multipurpose financial platforms. If you’re unsure which tools fit your employee population best, poll your employees about their financial challenges and dreams.
3. Digital Financial Wellness Tools
As noted above, access to human expertise is an essential element of financial wellness, but employees also want the convenience and number-crunching insights that come with digital tools. According to Bank of America’s 2022 Workplace Benefits Report:
- More than half (52%) of employees prefer to use a digital app to manage their finances
- Three out of 10 employees want access to financial advice through a digital portal
Digital financial tools have come a long way. It’s not just about checking your balance anymore. People use apps and websites to track spending, research investments and account types, budget, and chat with financial advisors.
The latest generation of financial wellness tools uses artificial intelligence and machine learning to help build personalized savings plans for employees based on their age, habits, career plans, and other characteristics.
There are numerous digital financial wellness tools and apps to choose from, covering a wide range of costs and capabilities. Some are focused on individual financial goals — such as paying for college — while others serve as multipurpose financial platforms. If you’re unsure which tools fit your employee population best, poll your employees about their financial challenges and dreams.
4. Emergency Savings Funds
The COVID pandemic woke many American employees up to the fact that financial setbacks such as job losses can happen without warning — and when they do, it’s best to be prepared. (Well over half of Americans — 57% — could not afford a $1,000 emergency.)
Emergency savings funds are a somewhat new form of financial benefit that allow employees to set aside a portion of their paychecks for a rainy day. While emergency savings are taxed as income, they can be accessed (for example, through a debit card or electronic transfer) without the penalties of drawing from a 401(k).
Some employers may even choose to match contributions to emergency savings funds, and some emergency funds may be linked with retirement accounts so that unused funds may be rolled over.
5. Promotion of Your Current Financial Wellness Benefits
As you read this article, you may think, “Our company already offers excellent financial wellness benefits, but our employees don’t seem to use them — or understand them.”
For example, your EAP might provide access to free financial counseling, or your FSA benefit might help employees save for medical emergencies. Yet, these programs may see very low usage.
The issue may not be the benefits themselves but your employees’ awareness of them. Many employees only review their benefits during open enrollment and often forget about them during the rest of the year.
You can help your employees improve their financial wellness while boosting utilization with a year-round communications campaign designed to bring awareness to and answer questions about your company’s financial benefits.
Using email, explanatory videos, and even text messages, you can remind employees of all the ways your company can help to ease their financial worries and encourage them to suggest improvements to your financial wellness program.
