HR leaders are reassessing their total rewards programs to recruit and retain employees.
Inflation. An up-and-down stock market. Global energy crisis. A receding pandemic. To put it mildly, there's a lot going on.
And your employees are feeling the pain—whether at the gas pump or a peek inside their 401(k) investment accounts.
Add a hot job market, and employees are quitting in record numbers to work for companies that pay more money.
If you're in HR, you're most likely reassessing your total rewards programs to make your total compensation and benefits package to be more attractive. But one of the easiest—and cost-effective—solutions is to bring financial wellness aboard.
Simply put, it's the ability of employees to manage their financial lives in a way that supports their overall wellbeing.
This includes having access to quality financial advice, being able to save for retirement and emergencies, and not feeling overwhelmed by financial stress.
Arguably, financial wellness is the most glaring gap in your current benefits package. Nearly all employees (93%) want their employers to offer financial planning services, but only one-third (28%) do.
A PwC survey found 72% of employees would consider switching jobs if another company cared more about their financial well-being.
And when asked what causes employees the most stress, finances top the list.
While saving for retirement is important, your employees are struggling with housing costs, medical expenses, student loans, navigating investments, and financial literacy.
There are a number of different ways to promote financial wellness among your employees. Here are a few strategies to get you started:
Employees need to be able to save for both short- and long-term needs. One way to make saving easier is by offering employees the ability to contribute pre-tax dollars to a savings account, like a retirement account, Flexible Spending Accounts and Health Savings Accounts, education savings account, and permanent life insurance. This could be through a payroll deduction or employer contribution.
Another way to make saving easier is by providing employees access to financial wellness tools. These tools could include budgeting and tracking tools, calculators, and advice from financial planners.
Certified Financial Planners (CFPs) can provide employees with personalized advice on how to best manage their money. CFPs are specifically trained to help people make sound financial decisions. By working with a CFP, employees can get an objective, unbiased perspective on their financial situation and personalized advice on saving money, investing wisely, and planning for their future financial security.
Financial wellness solutions, like Origin, combine financial planners with a money management platform where employees can get a holistic view of their financial health from one place. The platform tracks employees’ net worth, investment accounts, progress toward financial goes, and gives a snapshot of their total rewards package and equity.
Unfortunately, most employees only seek financial help when they’re already in crisis mode.
One of the best ways to support your employees is through education. Help them understand the basic concepts of finances—such as mortgages, loans, risk, interest rates, and others—to feel empowered to make intelligent financial decisions.
Education can be delivered through workshops or training sessions hosted by your financial wellness provider.
The Great Resignation is here, unless you’re actively supporting the well-being of your workforce; now is the time to reevaluate your benefits offerings and close the financial wellness gap.
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