A healthy work environment is one that considers all aspects of employees’ well-being. This includes physical, mental and yes, financial wellness.
If that last one is a surprise to you, check the pulse of your employees. Many of them want guidance through tough financial situations. Are giving them they support they need?
Holistic financial wellness for employees goes beyond offering them a 401(K). A recent study showed a gap between programs employers think they should offer and what employees think should be available to them
For example, student loan debt is a well-known financial hurdle. The average borrower graduates college with $37,000 in debt. It can prevent younger employees from buying homes or achieving other financial milestones. Survey results show 46 percent of employees want their companies to help them pay off or finance student loan debt. 18 percent of bosses agreed.
You may have heard the financial mantra that you need an emergency fund that covers three to six months of living expenses. Unfortunately, according to a Bankrate survey, 23 percent of Americans have no emergency savings. In fact, 22 percent have only saved enough to cover fewer than three months.
It follows, then, that 44 percent of workers want their companies to offer them help to create that emergency fund. Only 22 percent of employers agree they should offer such help. With an emergency fund part of an overall budget plan, 36 percent of employees would also like assistance to maintain their budget.
Let’s Talk About Money
They are more examples of this divide, but you get the idea. Employees are looking to you, as an employer of choice, to throw them a financial life raft. We recommend using employee communications throughout the year to give workers support. Here are a few ways to get you started:
- Use pay increases to as a time for a financial wellness conversation. Communications can encourage employees to tuck that extra money into their emergency fund. Create an infographic that shows even small increases can have big impacts. Show them how even a three percent raise on a $50,000 salary offers them an extra $1,500 per year. Total rewards statements help employees see the whole picture of their compensation. They will understand and appreciate the employee value proposition and you as an employer.
- Create a savings account guide. This is a communication that lays out all the ways employees can save money. They’re no longer limited to stowing their money at their local bank. Online savings and money market accounts offer better interest rates. Or, your 401(K) provider may also offer a savings vehicle with a good rate of return. Show the pros and cons of different account providers. Teach employees where they can learn more about savings options.
- Use communications to show employees where they’re leaving money on the table. Does your company match 401(K) contributions? Explain to workers how that’s essentially “free” money. Send year-end reminders to workers enrolled in flexible savings accounts so they remember to a use funds before expiration. Create a handy checklist of eligible expenses.
Awareness is the First Step
Open enrollment is another logical time to support workers to make wise financial choices. Encourage employees to choose plans that get them the care they need at a price they can afford. For example, HDHPs can be a vehicle for financial wellness for employees. These plans take a smaller chunk out of paychecks. In your communications, illustrate that difference. Employees can funnel the money they save from making smart benefits decisions towards student loan or other personal debt.
Workers might not know money in health savings accounts, which go hand-in-hand with HDHPs, grows tax-free. That money is theirs forever; it travels with them when they change jobs. And when employees are 55 years old, they can sock away an extra $1,000 annually. Create targeted, forward-thinking communications for baby boomers. When they retire, they can use their HSA to pay for covered medical expenses. Tell them that saving now can stop headaches in the future.
Encourage smart financial decisions in year-round communications. Your employee intranet is a smart place to house on-demand financial education. You can poll your workforce on the financial worries that keep them up at night (anonymously, of course!) Then, create and post short, educational videos, infographics, and fact sheets on those topics. Develop a mix to appeal to various learning and communications preferences. If time or resources are tight, you can link to educational videos and podcasts from outlets like You Need a Budget.
Personal financial stress affects all areas of life, including work performance. Help your workforce shine at home and at work. Use communications to show you look out for employees’ physical, mental and financial wellness.