Your employees are good at their jobs. You recruit the top talent from the top of the industry. You even provide them with the best tools to get the job done—plus competitive salaries and employee benefits to help them succeed outside of work.
But when it comes to financial planning, your employees are in the dark.
And it’s affecting their work.
Even with great salaries and benefits, employees don’t have the knowledge or guidance to plan for their financial futures.
Keep reading to see the blindspots impacting your employees’ financial goals and how you can help them lead more productive, fulfilling lives.
How secure do employees feel about their financial future?
After years of financial uncertainty, people everywhere are looking for ways to make better financial decisions for themselves and their families. But there’s a knowledge gap that your employees don’t know how to fill.
In fact, 40% of employers say their employees are only a little or not at all financial savvy, according to the International Foundation of Employee Benefit Plans.
It’s not because employees don’t want to learn. According to our State of Employee Financial Health and Wealth report, 86% of surveyed workers at least somewhat agree that they want to make more informed investments with money but don’t know how.
Our survey also found that 61% of employees said they get their most important source of financial information from search (Google, Bing). And 42% said media (newspapers, blogs, etc.).
What are your employees missing when they rely on these sources? Personalized information and trustworthy advice. Overgeneralized information found en masse from the internet easily leads to information overload.
While personalized financial planning helps most people, it seems out of reach to your employees. Of those we surveyed, 40% of respondents have never consulted a financial planner, and only 21% have consulted one once or twice.
And this can have long-term repercussions on your employees’ lives—and in your business.
Why should employers care about employee financial health?
The burden of financial stress looms over your employees’ everyday lives—including work.
The International Foundation of Employee Benefit Plans reported that 64% of surveyed employees say financial challenges lead to an inability to focus on work. And 2 in 5 employers say personal finance issues affect their workforce’s overall job performance.
Financial worries lead to a host of other problems for your employees. Long-term stress can lead to:
- Lack of motivation
- Problems focusing
- Less patience
- Shorter tempers
- Lower immune systems
- And other long-term health problems
The pandemic has only made matters worse. Employees with school-aged children are suddenly faced with the choice of spending hundreds of dollars on childcare or missing work entirely.
But there are ways companies can not only provide financial stability for your employees but also support their long-term financial planning.
How can companies help?
Workers are looking to their employers for guidance on their financial wellness journey. Our survey found that 93% of respondents at least somewhat agree that they would like their company to offer increased access to financial planning and advisory services.
Here are a few ways to help guide your employees through their financial journeys beyond simple rate increases.
Tailor financial education to your employees’ priorities
Are they looking at saving money for their children’s education? Still paying off their student loans? The best advice is personalized. Survey your employees to see what stage of life they’re in and what areas of financial advice they’re looking for.
Promote 401(k)s and other employee benefits
You can provide the best benefits packages, and some employees will still fail to use them. Sometimes employees don’t understand the benefits you offer, or they simply aren’t aware of them. Promote your benefits across channels, provide educational classes or webinars, and make HR available to answer questions as they come up.
Offer financial wellness as an employee benefit
Giving your employees one-on-one financial support is the best way to reduce their financial stress. Using a plan that connects them with a Certified Financial Planner™ helps them get more out of their paychecks, reduce money-related stress, and plan for their financial future.
Lead employees into their bright financial future
While your employees may be in the dark now, you have the power to illuminate their financial possibilities with Origin.
Origin is a financial wellness company that provides CFPs® to help your employees take control of their financial future. Our platform integrates personal finances with employee benefits to give employees a complete financial picture.
If you’d like to dive deeper, get your copy of our inaugural State of Employee Financial Health and Wealth report.