Financial Planning App May Help Alleviate Financial Stress
Not only does financial stress affect the individual, but it also ultimately impacts workplace productivity. Because of this, it behooves employers to implement financial programs and tools to help encourage financial wellness. The inability to do so can even result in raised costs and a decrease in overall business profit.
According to a survey by Salary Finance, nearly 50% of U.S. employees suffer from financial stress and are:
• 8x more likely to have sleepless nights
• 4x more likely to suffer from depression
• 5.8x more likely to not finish daily tasks
• 4.9x more likely to have lower work quality
• 4.5x more likely to have poor relationships with colleagues
• 3.4x more likely to suffer from anxiety and panic attacks
Not to mention, about 80 percent of Americans are now living paycheck to paycheck, according to CareerBuilder.
Upon the conclusion of The Plan Sponsor University (TPSU) Fiduciary Education Program held at The University of Loyola MD, Founder and CEO Fred Barstein, spoke with Plan Sponsor, Elliot Larimore, a Human Resources Generalist at Charter Senior Living. Larimore explained the strides their company is making toward implementing realistic measures to help employees manage financial stress. One method is an app named ZayZoon. This app allows employees to instantly access their earned wages on-demand. It’s a voluntary benefit that reduces financial stress related to cash flow shortfall between paychecks. By doing so, it assists in helping improving retention and an increase in productivity.
A small effort such as this has gone a long way according to Larimore. “The numbers seem to be that we’ve made the right decision,” he says. “It’s all about our associates and making sure that they’re in the benefit.”
Read the Full Transcript Here
Fred:
This is Fred Barstein, CEO and founder of TPSU and 401K TV. Just completed a program at [inaudible 00:00:12] University in the Baltimore area and I am here with Elliot. Welcome, Elliot.
Elliot:
Thank you. Thank you.
Fred:
Okay if we ask you a few questions?
Elliot:
Absolutely.
Fred:
Okay. Before we do, let our audience know a little bit about yourself and your size of your organization.
Elliot:
Yeah. I’m Elliot Larimore. I’m with an assisted living community. We have about 2300 associates over about 14 states.
Fred:
And what’s your role there?
Elliot:
I’m the Human Resources generalist, so…
Fred:
There you go. So during the program today, you talked about an app, ZayZoon. Is that…
Elliot:
Yep.
Fred:
Tell me what is it and how did you learn about it and how do your employees use it and what’s the benefit?
Elliot:
Yeah, so the major thing is financial stress. Our associates are much frontline workers and so, they are paycheck to paycheck. And so, we’re always looking for how can we get more benefits? And so, we really were looking out, having a lot of calls about loans and 401K loans and hardship loans and benefits and we kept finding that they were really, really small.
Fred:
Mm-hmm.
Elliot:
And we said, “Well, why? What else can we do to help people?” And so, ZayZoon is a app that they can go into that they… ZayZoon looks at their payroll and gets what they’ve earned over this last paycheck and they can get that pre the time that they would normally get their direct deposit. And so, then they get that and they’re able to… It lowers their paycheck from that paycheck time, but they get that.
It’s been a great benefit because one, it’s helped us so that we don’t have those calls, but also, it helps the associate. Today is close to end of the month, and if rent is… If the first comes on a Thursday or a Wednesday, and I’m not getting paid till Friday, my landlord may not have that grace period. So now, I can use that, go to ZayZoon, company doesn’t know and they get that money sent to them into their account and they’re able to pay that, whatever they might need right away.
Fred:
Do you have a lot of people using that?
Elliot:
We do. The numbers seem to be that we’ve made the right decision to come back and get that and to use that benefit. It’s all about our associates and making sure that they’re in the benefit.
Fred:
And in today’s era, why have to wait two weeks, right?
Elliot:
Yeah. That was the thing. People just wanted their money now. And so, we’re able to do that for them.
Fred:
Great. Well, congratulations on that.
Elliot:
Yep.
Fred:
Final question, what’d think of the program and a couple of things you might have learned and picked up?
Elliot:
Yeah. Well, our company is pretty new and so, we are building HR. And so, as we’re growing very quickly, what I really learned is this isn’t a one-stop shop.
Fred:
Right.
Elliot:
It isn’t a one-stop thing of, “Oh yeah, I put this in place.” But that it needs to be something that I am working on daily or at least monthly and looking at these things and seeing what’s happening. Where are we? Is this a benefit to us? Is the retirement or the future planning of life, is that going the right way? And should we be making changes or what changes should we be making?
Fred:
Right. So it evolves as your company.
Elliot:
It does. It does. That’s one of the biggest things.
Fred:
Well, thanks for your time.
Elliot:
You’re welcome. Thank you.
Fred:
Thank you for watching 401K TV. Please stay tuned for more videos like this.
