Financial Stress Management Requires Effective Financial Wellness
Financial Stress Management is costing employers dearly — to the tune of $250 billion in 2019 alone. I Financial Stress Management is one of the many reasons why financial wellness programs are fast becoming a must-have employee benefit or a must-consider benefit.
Financial stress management programs are designed to reduce employees’ financial stress to help them manage their money better, with employers providing tools and support to assist them in achieving their goals. A recent article in Employee Benefit Adviser written by Craig Rubino, Vice President, E-Trade Financial Corporate Services, noted that offering a financial wellness program on its own might not be enough: “But rather than simply adding a new product or vendor to your offerings, consider a gut check on vision: Are you positioned to help address the complete range of participant financial, mental and physical health needs? If not, your bottom line may be poised for pain.”
Employee financial stress management is taking a toll on both workers and employers. According to a recent MetLife report, one in three workers said employee financial stress management got in the way of their on-the-job performance, and overall, they said employee financial stress management was the main source of worry in their lives. In addition, lost productivity due to employee financial stress cost employers roughly 1,922 hours and $28,830 in lost weekly productivity in a company of 10,000 employees — or a total loss of 99,944 hours and $1,499,160.
According to Mr. Rubino, employers can create more effective financial wellness benefits by recognizing the needs underlying employee financial stress management. For instance, Millennials and Gen Xers worry most about not having an emergency fund. And half of all employees, regardless of generation, are living paycheck to paycheck. Workers are looking to employers for help when it comes to dealing with employee financial stress management, and they recognize benefits as a viable solution to some of their concerns: 37% of Millennials cited student loan repayment assistance as the employee benefit they coveted most, while financial wellness with access to financial counselors tops the list for 30% of Gen Xers and 28% of Baby Boomers. The solutions to employee financial stress management are as many and varied as the workforce, but there is one common thread, Mr. Rubino observed: “From short-term budgeting to long-term saving — and everything in between — participants are looking to their benefit plans for help. Increasing participant offerings and promoting engagement could be a powerful step toward helping participants achieve their financial goals.”
There is no one-size-fits-all financial wellness management solution for employee financial stress. In other words, there isn’t a single product or service that’s going to solve the diverse sources of employee financial stress for a multi-generational workforce. However, the following steps offered by Mr. Rubino can help to address employee financial stress management. The following may provide some ideas on how to bridge the divide between your current financial wellness offering and one that meets your employees’ needs:
Determine needs and wants: Survey your employee population to determine what they need and want most from your financial wellness program. What offerings will help them? What are their goals and current sources of employee financial stress? In addition, identify key priorities and determine benchmarks so you can later compare the ROI of any changes you made to your financial wellness program.
Identify your unique recipe for success: A majority of workers (80%) want financial planning workshops or financial wellness tools from employers to help address employee financial stress, but only 20% of employers actually offer them. Make sure you’re offering what your employees are telling you they need and want, and don’t be shy about looking to outside vendors and service providers to offer your employees the best financial wellness tools and support that address their unique needs.
Consider broader enhancements to your program: Make strategic updates to your financial wellness program to help combat employee financial stress. The broader, the better — your employees likely want access to a wide and diverse array of options. You might also consider adding specific benefits to address employee asks, such as student loan repayment assistance or 529 plan contribution matching.
Educate and engage with participants: Make sure your participants are aware of and understand the resources and tools available in the financial wellness program to help them deal with employee financial stress management. Create an experience where participants can access their benefits in one place and get a more comprehensive picture of what’s available to them so they’re not missing out on important benefits they need most.
As Mr. Rubino observed, “… financial wellness is about supporting participants on the path toward their personal financial goals. Stay in tune with your participants throughout the process of assessing and updating your benefits, from initial data gathering to promoting awareness and engagement. Your support of your participant’s physical, emotional, and financial health will pay dividends in engagement, productivity, and employee satisfaction.” Indeed, an effective financial wellness program that addresses employee financial stress management can be a win for everyone.
