How smart employers think about financial wellness benefits
You’re after financial capability and action born of knowledge, not knowledge alone. Smart employers understand that a do-it-yourself employee financial literacy program, alone, is a waste of scarce resources.
Financial wellness benefits, with personal financial coaching, are a smart employer’s best friend.
Your friend who solves for your workers’ top stressor: money.
Your friend who strengthens the health and productivity of your workers, and your bottom line.
Your friend, whom you should buy from…us…? Ok, we’ll work on the metaphors but you get the picture.
Employee financial stress costs employers billions
Personal finances, household bills, medical debt, auto and student loans, you name it, your employees are stressed out about it.
They’re already spending work time dealing with it.
A 2023 report by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) found that employees spend an average of eight hours a week dealing with financial issues — with four of those hours occurring at work.
That’s five work-weeks per year?!
As Manisha Thakor writes in Harvard Business Review:
The financial stress and resulting negative impact on mental health alone costs businesses $250 billion a year, per Mercer.
Smart employers recognize these costs.
Employee financial literacy programs, alone, are a waste of money
But more importantly, you sense the opportunities the costs present to invest in a solution that improves the stress, mental health, and productivity of your workers.
And at the same time, buttresses your organizations’ profits, social impacts, and talent acquisition/retention efforts.
You recognize that when it comes to any financial wellness program, financial literacy isn’t what you’re after.
You’re after financial capability and ultimately action. Action born of knowledge, not knowledge alone.
This is a critical point worth remembering not just in April because it’s National Financial Capability Month but all of the time.
Forward thinkers, you understand that a do-it-yourself employee financial literacy program, alone, is a waste of scarce resources.
“One-size-fits-all financial education has little to no effect on changing real-world financial behaviors. A meta-analysis of more than 200 studies found that educational interventions explained only 0.1% of the financial behaviors studied,” finds Martha Menard.
A financial wellness program revolution
What works is human connection. Personal financial coaching from experts who help your workers take action to reduce debt and stress and boost credit scores and savings accounts.
Expert coaches who help your workers make the most of their paychecks and the benefits that you already offer, on their paths to financial security.
A revolution is underway in financial wellness benefits which were centered around retirement savings, primarily 401k plans, in modern U.S. history.
Now, workers are more concerned with emergency savings and making it to their next paycheck.
Employers are navigating how to respond.
Smart ones are prioritizing personal financial coaching among their financial wellness benefits.
Personal financial coaching is integral to any financial wellness program
TrustPlus personal financial coaching offers tailored guidance and support to employees, helping them set and achieve their financial goals, whether it’s saving for retirement, managing debt, or budgeting.
TrustPlus coaches’ personalized approach to budgeting, saving, and reducing debt addresses the unique financial challenges and goals of each employee, leading to more meaningful and sustainable financial improvements.
An added bonus: investing in personal financial coaching demonstrates a commitment to employee well-being and development.
Employees who feel supported in their financial journey are likely to feel more valued and engaged at work, leading to higher morale and retention rates.
By helping employees build strong financial foundations, employers can mitigate the risk of financial emergencies that may impact job performance and attendance.
Including personal financial coaching as part of a comprehensive financial wellness program is a strategic investment for smart employers.
It not only benefits individual employees by alleviating financial stress and empowering them to achieve their goals but also contributes to a more productive, engaged, and resilient workforce.
Smart employers are thinking, and acting, accordingly.
Schedule a time with TrustPlus to discuss your financial wellness benefits and how to capture the benefits of a financially healthy workforce.
