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If you talk to your employees about the benefits that they would value the most, financial wellness is bound to come up. In today’s economy your employees are thinking about financial goals, whether it's purchasing a home, putting money aside for their children's education, or making ends meet now. There is a definite need for financial wellness programs, and implementing one will allow an employer to provide resources that will help employees overcome personal finance challenges.
A recent Employee Financial Wellness Survey put together by PwC indicated that 52 percent of employees are stressed about finances. Millennials, in particular, are experiencing stress when it comes to finances with 64 percent of this generation concerned about their financial well-being.
Addressing your employees' stress by establishing a financial wellness program will lead to more productive and satisfied employees. As an employer, you need to be concerned about the overall wellness of your employees, and their financial health plays a role in this.
How will employers offer financial wellness programs in 2017?
Seeing that there is a need for employee finances to be addressed, we can expect to see more employers integrate personal finance education with 401(k) education this year. If an employee doesn't understand the basics of personal finance, he or she is going to have a difficult time diversifying 401(k) plan accounts.
More employers in 2017 will offer tools that will not only help their employees better understand how much they're going to need to save for the future but also successfully budget their income and navigate their financial needs of today.
What do you need to consider when creating an employee financial wellness program?
In order to create an effective program that will work for your employees, you need to address the following questions:
1. How will the program's success be measured?
The outcomes from employee participation in a 401(k) program and health benefits are easily quantified; however, the effectiveness of a financial wellness program for employees will be less apparent. In order to allocate company dollars to go towards resources such as education, financial calculators, savings programs, student loan aids, and credit-safe purchasing alternatives, you need to be able to measure the success through improved performance and less distractions in the workplace.
2. How in-depth do you want your program to be?
There are a wide range of options for employee financial education programs, from group sessions to individualized counseling to online tools. While the programs with more one-on-one interaction will be more effective, they'll also be more expensive.
3. Are you going to make your program mandatory?
If your program is not mandatory, think about the incentives that you'll offer to encourage participation. Examples of incentives could include a small, one-time bonus for participating or subsidized sessions with a financial planner.
When it comes to putting together a financial wellness program for your small business, there's no one-size-fits-all strategy. We can help your business develop a custom tailored solution that meets the needs of your employees and your budget. Please contact us to learn more about strengthening employee benefits by offering a financial education program.