Here at Limeade, we know the importance of financial wellness in your wellness program. It’s a key factor in both employee health and engagement. So just what is financial wellness? It’s a state of financial well-being in which employees feel financially sound with minimal monetary stress and have a financial plan for the future.
A 2013 study from Aon Hewitt found that financial issues are the most commonly cited stress factor among employees. And this stress is taking its toll at the office: employees say finances are a distraction at work, lowering productivity and engagement. So it’s no surprise that when companies invest in both employee health AND financial wellness, there is a surprisingly high return on investment.
The facts are in: employees are stressed about money. With only a shocking six percent of employees strongly agreeing their organization does things to help them manage their finances more effectively, by offering financial challenges within your wellness program it will benefit your employees and positively impact your business.
Here are three of our best practices:
- Money Matters: Bring in local or national experts to hold in-person or online workshops, seminars or one-on-one coaching. Make it a three-part series to ensure employees learn about all aspects of their finances, such as healthcare savings, managing credit and planning for retirement. Reward employee participation and encourage employees to attend.
- Pecuniary Planning: Equip employees with various tools to assist them in creating a financial plan – a crucial step towards the pursuit of financial wellness. Some tools include 401k or IRA savings calculators, learning modules, written materials and scenario planning. It’s important to remember that financial planning is ongoing rather than an event. So reward employees who regularly engage in mapping out their financial future.
- Monthly Savings: Challenge employees to automate their savings by putting away at least 10 percent of their income every month. While for some this might seem like a lot, and for others just a little, remind employees that putting aside money every month does add up and feels good. Have them name their savings account, like “Home Sweet Home” or “Trip to Paris,” to remind them why they’re stashing away cash. By incentivizing employees, putting money away each month will become a long term habit.
Want quick tips for employees?
Download our Financial Health Checklist, a great resource to send to your employees or to hang in a public space. In simple terms, it outlines 10 things they can do right now to be financially fit.
Stay tuned over the next few weeks as we kick-off a month-long series on how to change your wellness program into an employee engagement program. We’ll be sharing our tips for how to successfully route to external resources, engage your employees in on-boarding initiatives and even share how to launch challenges around your company values.