Employee Financial Well-Being: What Wellness Managers Should Know

2-minute read

Approximately 20% of employees responding to a PricewaterhouseCoopers survey say they would wait for a financial crisis before seeking guidance. They may be reluctant to access support — professional assistance or educational programming — for several reasons:

  • Feeling embarrassed about not knowing more or intimidated by the topic’s scope and complexity
  • Relying on a significant other’s knowledge as a crutch
  • Believing personal finance isn’t relevant to them because they don’t have savings
  • Experiencing stigma about financial circumstances.
Elements of Program Excellence

With foundational employee well-being elements — like solid compensation and benefits — in place, employers turn to vendors for financial well-being programs. So many self-proclaimed “solution providers” have entered the market, however, that purchasers are hard-pressed to sort the good from the bad.

To deliver an effective option, consider the following attributes highlighted in Employee Financial Well-Being Pays Dividends for Employers:

  • Simple and appealing
  • Enjoyable
  • Encouraging
  • Personalized
  • Self-paced.

The best will:

  • Offer vetted resources for participants who want to explore further
  • Never promote commercial financial services and products
  • Feature interactive prompts that spark new behaviors.

They advance participants along a continuum:

  1. Curious, realizing there’s much to learn and that they’ll benefit from new information
  2. Educated, informed about personal finance and able to synthesize lessons into individualized action plans
  3. Empowered, having the self-efficacy to make the decisions and take necessary steps
  4. Activated, creating and executing their plan toward financial security.

To encompass diverse needs, programs should allow them to delve — as deeply as they wish — into a comprehensive selection of subjects including priorities like starting an emergency fund; paying off debt; and saving for vacations and retirement. But they shouldn’t stop there — other essentials include:

  • Banking
  • Budgeting and goal setting
  • Buying a vehicle
  • Financing for college
  • Credit and debt
  • Estate planning
  • Choosing financial advisers
  • Happiness and money
  • Health insurance
  • Housing: buy or rent?
  • Income taxes
  • Insurance: home, auto, life
  • Investing
  • Major purchases
  • Making extra money

A program that meets the above criteria for program excellence should be a cornerstone of your organization’s financial well-being strategy. Advantages will include greater security for employees — plus the far-reaching effects on productivity, mental health, and DEI that go along with it.

NEW WHITE PAPER
Employee Financial Well-Being
Pays Dividends for Employers

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Dean WitherspoonDean Witherspoon
Chief collaborator, nudger, tinkerer; leads the most inventive team creating well-being and sustainable living programs. Reach out if you’d like to talk about employee well-being, emotional fitness, or eco-friendly living.

 

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