Growing Demand for Financial Literacy

As corporate wellness programs continue to become more popular with American businesses, so do financially-focused benefit solutions. Today, 70 percent of employers have wellness programs in place*. Among the largest US employers, 93 percent intend to focus on the financial well-being of their employees^. According to the 2015 Financial Wellness Survey from FSFE, 60 percent of employers that offer wellness programs already have a financial component.

Employers are seeing the benefits of offering a financial wellness program and it has been proven that having people who are more financially literate will help them reduce their stress and help them become better, healthier employees.

A More Wholistic Approach to Wellness

Employers who already offer wellness as a part of their benefits package are creating more customized and personalized benefit programs. While corporate wellness use to focus on physical health with gym memberships and healthier food options in the company pantry and cafeteria, now organizations are developing much more holistic programs and concentrating on well-being, which now includes emotional and financial.

Employee financial health can contribute to emotional and physical health, so a growing number of employers are now providing resources to help their team manage and protect their money.  While there are many types of companies offering financial wellness programs, from those that focus strictly on financial education to those that have a hotline that connects employees with financial advisors. However a truly effective comprehensive financial wellness program will prompt employees with short and long term financial behavioral changes with the help of technology and experts. 

Voluntary benefits are also booming. Employers and their employees are finding the value in supplemental benefits as these benefits are a way to fill coverage gaps, customize coverage, and provide additional peace of mind in the case of an accident or unexpected illness. Popular lines include hospital indemnity, dental, and short-term disability insurance. A comprehensive financial wellness program can help employees understand how voluntary benefits work and which ones will meet their needs.

US News & World Report’s Money source recently included financial fitness as the number two “Employee Benefit Trends to Watch in 2016”

Easing Economic Stress

As we move into 2016, organizations can anticipate the wellness movement to continue through the expansion of financial wellness, a component of the movement specifically focused on helping individuals ease economic stress, overcome money challenges and promote financial health.

The Business Benefits of Financial Wellness

Research has proven that financial wellness yields similar benefits to those from a traditional medical-based wellness program. With this, organizations will see reduced long-term healthcare costs, higher efficiency, longer tenure and decreased absenteeism among their staff.

*SHRM 2015 Employee Benefits Survey. 

^2015 Aon Hewitt survey of 250 employers.

Financial Wellness in the Workplace

Statistics vary, but  most seem pretty dismal. The majority of American workers are facing economic challenges that threaten their ability to meet their current and future financial needs. Nearly 2 out of 3 American families live paycheck to paycheck.1  For many families, a premature death or disability could mean financial ruin. An unexpected health event could generate unforeseen out of pocket expenses.

Money, Not Work, is the Number One Stressor

The American Psychological Association (APA) recently reported that money remains the number one stressor for 72 % of Americans.

Employees who are stressed and suffer from money anxiety are disengaged from their jobs and are more apt to be sick, absent or spending hours at work dealing with unpaid bills collectors and creditors. The question than must be asked, What can employers do to meaningfully support an employee’s financial and emotional wellness as well as their physical wellbeing? 

Focusing on financial wellness benefits will offer employees a healthy awareness and understanding of their personal circumstances while recommending the steps they need to take to improve the state of their financial situation.

Specifically, financial wellness benefits will help employees plan for their financial future while maximizing their savings and asset protection.

70 % of HR professionals agree that personal financial challenges also impact employee performance.2 For employers a financial wellness benefit program will minimize the employee costs associated with financial stress while helping to lessen financial stress in the workplace, increase retirement readiness, and strengthen workplace culture and productivity.

The Benefits of a Financial Wellness Program

For employers, financial wellness is an employee benefit designed to improve employees’ financial behavior and outcomes while also driving business performance.

For employees financial wellness helps them improve their financial health and builds confidence while helping them spend wisely, save for emergencies, protect their assets properly, understand their workplace benefits and invest wisely for the future.

How it Benefits Your Organization

An effective financial wellness program will help employees

• gain more control over their day-to-day finances
• save enough of a cushion to absorb a financial shock
• direct them to actively work towards their savings goals and
• also help them develop financial security and freedom

Most employers believe that helping their team gain control over their personal finances will also help the company’s bottom line.

Employees who feel financially secure are also more apt to

• be more satisfied and productive at work
• loyal to their team members and their organizations
• engaged with everyday tasks and goals

A Framework for Financial Wellness

Experts agree that a solid foundation for financial wellness programs takes into consideration –

• Understanding employees’ financial stressors and priorities
• Implementation of benefits that matter to employees
• Segmentation of financial solutions to target employees at diverse income and financial knowledge levels
• Offering of financial counseling and planning and employee assistance programs

New Solutions – A Faster Way to Financial Well-Being

One of the biggest challenges in developing a financial wellness program that employees want to engage in includes tapping into an “always on” 24/7 digital world.

New requirements for financial wellness programs include 

• Personalized financial guidance that harnesses the power of technology
• Convenience with a cloud-based platform that is available 24/7, 365 days a year
• Programmed with proven intelligent financial guidance and education
• Simple, easy to understand with recommendations that yields the greatest results in the shortest amount of time
• Capable of connecting employees online to experts for further education and direction

A new breed of financial wellness program creators include organizations who offer “on call” personal finance coaching to employees via phone, online chat or in person.

Another financial wellness offering comes from Boston-based tech start up Melius which has addresses these requirements with an automated personal finance guidance system.

One of the biggest benefits for HR is that it takes little to no time to implement Melius and that means more time to work on core HR responsibilities and overall goals for the business.

Melius eliminates the need for a series of financial workshops, lunch and learns, e-learning videos, or ongoing employee wellness education. The education and guidance is built right into the software platform and around very direct actionable advice that is personalized for each employee. Melius allows employees the ability to connect with experts when they are ready with a better understanding of what they need.

Learn more about Melius. RSVP for a demonstration today.