Employee financial security
crashed along with the world economy in 2008. Since that time employees have struggled
to meet their financial obligations causing stress, anxiety, and depression. This
is not only bad for the employee but it also negatively impacts the employer.
workforce stressed out by money is not only unhealthy but also less productive
and less engaged.According to the “Personal
Finance Employee Education Foundation”, Americans who are able to handle
their finances well have significantly dropped from 42 percent down to 24
percent between 2006-2012.
Employees need to know how to improve their overall
financial success and save for specific costs, such as retirement. According to
the American Savings Education Council’s 2012 Retirement Confidence Survey of
Americans 25 and over, only 19% of workers feel that they are doing a good job
at preparing financially for retirement and just two-thirds (66%) report that
they are saving for retirement.
programs can have a tremendous impact on helping employees improve both their
short-term and long-term financial standing. Worksite financial wellness
programs should look at how all the pieces of an individual’s financial life
fit together. Today, education programs that focus on financial well-being have
become more popular and prominent within progressive organizations.
to Barbara Kontje of American Express, their ongoing workplace financial
literacy program has resulted in a 7% increase in 401(K) participation and
those deferring 5% or more increased from 72% to 80%. Their tactics
include a dedicated website, on-site fairs, one-on-one counseling sessions and
can start adding financial wellness to your health and wellness programs with
limited or no budget:
- Tap into your existing resources. Most EAPs offer one-on-one financial counseling and, if
local, often will come to your worksite for a lunch-n-learn session. Talk with your 401(k) vendor about enhanced on-site
financial planning sessions throughout the year to increase financial
well-being and 401(k) participation.
- Consider finding a credit union your employees could join
and see if they will come in and offer lunch-n-learns or provide webinars or
videos if lunch time isn’t feasible. This is a great strategy for smaller
- Add financial wellness articles to your company newsletter
or on your intranet. Here are some resources:
sure to ask you employees what they want to learn to ensure you’re providing
the information needed.
Click here to read MBGH's earlier blog post on the importance of financial wellness at the worksite.