Believe it or not, your employees’ financial well-being affects your company’s output. Nearly half of American full-time workers say they worry about personal finances during work hours. And 29 percent say they deal with personal financial issues on the job – often for two to three hours a week.
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.
Why Employers Should Care (and Help!)
A recent study by Towers Watson found that when companies focus on both employee health AND financial well-being, it results in increased productivity, a competitive edge in the marketplace and an improved ability to attract and retain talent. In fact, according to Workforce.com, employees actually welcome their employer’s involvement in helping them improve the state of their current and future financial fitness.
Need help launching a financial well-being program for your employees? We have five ideas to consider.
1. Make sure your (tax-saving) benefits measure up.
- Retirement Plans. In an era when companies are slashing benefits, differentiate yourself from your competition by considering a thoughtful 401(k) program - and if you are in the position to due so, match their contributions to push them in. Make sure your employees (and potential recruits) know about the psychological and tax saving benefits of 401(k) savings.
- Health Savings Accounts (HSAs). As more companies switch to high-deductible health plans tied to an HSA, consider contributing to employees’ accounts – enough to cover the deductible would be ideal. As with the 401(k), make sure employees know how an HSA works so that they can take advantages of the benefits like lowering their taxable income and ability to save for future health expenses.
2. Offer first-person financial education services.
According to Aon Hewitt, 23 percent of employers offer 1:1 meetings with financial consultants, which goes a long way in improving personal finance habits. If you’re not part of this 23 percent, start small and gauge interest by offering an on-site financial planning seminar on topics like budgeting, dollar-cost averaging, asset allocation and retirement planning.
3. Provide an employee discount program.
A great way to help employees hang onto more cash is to offer negotiated discounts on car and home insurance, technology and even local attractions. Some companies take this a step further with voluntary employee purchase program, which allows people to buy household items and educational services through payroll deduction. This helps employees take control of their finances by setting spending limits.
4. Incorporate financial well-being into your wellness program.
To improve overall well-being, it’s important to think beyond traditional fitness, nutrition, stress and sleep programs. Help employees get on the right track by offering financial challenges within your wellness program. Be sure to clearly outline what they need to do and reward employees for their actions. Here are some of the most popular financial well-being challenges in Limeade:
- Attend an on-site financial education seminar
- Learn about your company’s financial benefits (through a webinar, online resources or in-person meeting)
- Begin a debt cleanse
- Set a monthly savings goal
- Pack a healthy lunch
5. Build a meritocracy.
Merit-based pay – salary, benefits, vacation, bonuses, etc. may be the best way to align your business goals with the financial goals of your top performers. Because we see a positive correlation between stress and productivity, your most productive people may need a stress-relieving vacation (absent any financial worries) the most. Build loyalty with your best people or pay a far greater price.
Take Action Today
Download the Financial Health Checklist and send to your employees to offer tips like canceling unused services, setting a monthly budget, establishing an emergency fund and more.