Financial Wellness: The Hidden Gem of Employee Well-Being

Today’s multigeneration workforce is privileged to have a front row seat from which to witness a global shift from traditional wellness programs to a more holistic approach. Workers are reconsidering what they need to be productive, and employers are beginning to accommodate employees’ requests for things such as flex-time and remote work.

Though most wellness conversations center on mental and physical health, an obvious and too-often overlooked topic deserving of attention is financial wellness for individuals. This represents a great opportunity for organizations to discover previously unexplored ways to help employees optimize their work experience while feeling secure in their personal finances.

Very few would argue against the assertion that most people seek to attain financial freedom. While certain career paths and industries make it easier to achieve this status, 7 in 10 Americans struggle with at least one aspect of financial stability. The COVID-19 pandemic only heightened concerns about job security and the ability to make ends meet even for those holding advanced degrees and occupying higher paying positions.

Still, employees remain hopeful about their personal financial situations as they begin to access wellness resources offered by their employers. As your own organization seeks to expand financial wellness options, here are a few best practices for building strong programs.

Listen to the Needs of Your Employees

It may not have happened to us, but we all at least know someone who was inadequately incentivized. Think, for example, about that rock star individual contributor who suddenly failed after being promoted to a management role. It is more likely than not that the person never wanted the promotion and the work that came with it. Being made a manager felt more like a punishment than a reward for a job well done.

This is just one example of how bad things happen when an organization tries to incentivize someone without taking the time to learn the person’s true source of motivation. The lesson applies to fostering financial well-being.

Providing financial wellness resources that do not align with the needs of the workforce could hamstring genuine attempts to help employees. Finding ways to learn what people need and want is a wise first step toward creating a culture of sustainable financial wellness. In some cases, it also makes sense to provide employees self-assessment tools so they can gain an honest perspective on their current financial situation.

Be Transparent About What You Can Provide

Learning the real needs of employees makes it possible to determine which plans and programs can feasibly be offered. Developing and rolling out resources will require a bit of strategy, but the process does not have to be difficult.

A workable approach involves creating a wellness calendar and promoting financial wellness initiatives at appropriate times of the year such as during open enrollment season. As for what to offer, employees want simple ways to find relief from complex financial challenges. Topics to focus on include retirement planning, short- and long-term disability, critical illness plans and voluntary life insurance benefits. Offering interest-free loans can be quite welcome for employees who experience unexpected financial setbacks, but creating strict criteria for accessing such a benefit is imperative.

Whether an employee is looking to learn new budgeting techniques, repair credit, or purchase or refinance a home, having a dedicated financial partner onsite to guide their progress will feel like a win. At the same time, it may help to partner with local financial institutions to offer monthly financial planning meetings for employees.

For each plan and program, it is important that all employees have access regardless of their career level. Also, make sure employees are clear on the cost-per-paycheck in addition to the return on such benefits. Last, the benefits must be managed professionally and ethically so employees find it convenient and safe to take personal ownership of their financial future.

Think About the Employee Lifecycle

To see a real and sustainable transition to financial wellness, consider the opportunities to intervene throughout the employee lifecycle. Employees who thrive tend to follow a clear path from where they are to where they want to go professionally. Matching financial wellness offerings to career milestones ensures even entry-level employees can start executing a game plan to achieve financial security.

Integrating financial wellness with career paths and ladders will require collaboration across various departments, but the outcome of ensuring employees have access to appropriate resources when they need them will be extremely rewarding. When taking this approach, pay particular attention to participants in internal upskilling and reskilling training programs. Getting on the path toward sustainable financial wellness will ensure employees enjoy the fruits of higher-paying jobs while also promoting retention.

No one can prevent unforeseen events, but everyone can find ways to navigate through such experiences. Ultimately, however, any mental, physical, financial, social or professional resource an organization provides employees to support their well-being will only prove worthwhile if the intended beneficiaries know about and use the resource. This makes achieving financial wellness a collaborative effort. Resources may always be available, but the organization’s best intentions will not mean much if the realities of an ever-evolving world overwhelm communications about how to access and get the most from those resources.