Financial wellness programs should not be overlooked in 2024, particularly by employers. Financial stress is currently at an all-time high, with workers burdened by debts, financial insecurity, and the escalating cost of living. If you believe these financial pressures don’t impact the workplace, think again. Research indicates that financial strain not only diminishes employees’ productivity but also affects their mental health and overall job satisfaction. By implementing comprehensive financial wellness programs, employers can equip their workforce with the education and tools necessary to manage finances effectively, reduce stress, and enhance their quality of life. Key components such as budgeting, debt management, retirement planning, and investment strategies empower employees to make informed financial decisions.
For employers, the benefits of financial wellness programs extend beyond their employees’ well-being. A financially healthy workforce is more engaged, productive, and loyal. Companies that invest in these initiatives often experience lower absenteeism rates, reduced healthcare costs, and higher employee retention. Moreover, offering financial wellness programs can bolster a company’s reputation, making it more appealing to prospective hires. In today’s competitive job market, comprehensive benefits addressing employees’ financial health can distinguish a company as an employer of choice.
At the conclusion of a TPSU program at the University of South Florida in Tampa, FL, Fred Barstein, President and CEO of TPSU, interviewed Phil Hubbell, EVP of Human Resources at Lutheran Services Florida. Phil outlined their organization’s financial wellness program, designed to guide employees toward a secure financial future through daily budgeting, college planning, and retirement strategies. Initial efforts garnered approximately 10% employee participation, with plans for a future financial wellness survey to shape upcoming initiatives.
Read the Full Transcript Here:
Fred Barstein:
This is Fred Barstein with 401k TV in Tampa, Florida, where we just completed a TPSU program at the University of South Florida. I’m pleased to be here with Phil. Welcome, Phil.
Phil Hubbell:
Thank you.
Fred Barstein:
Okay if we ask you a few questions?
Phil Hubbell:
Yes, of course.
Fred Barstein:
Okay. But before we do, let our audience know a little bit about yourself and the size of your organization.
Phil Hubbell:
Sure. Sure, sure. I’m Phil Hubbell. I’m the EVP of Human Resources at Lutheran Services Florida. And we’re a group of about 1,250 folks across the state of Florida.
Fred Barstein:
Great. So today we talked about financial wellness, and you actually have a financial wellness program. And that means a lot of different things to different people. What does financial wellness mean to you and your organization?
Phil Hubbell:
Financial wellness is in kind of its infancy with us, but we’ve seen some early success. And what it means to us is it means that we’re helping to provide just guidance on a safer financial future for our folks. So just like a normal wellness or health-oriented wellness, we want them to live a long time, we want them to be able to live a good life for a long time. And so we’ve partnered with a group called the Participant Effect through a partner of ours called Fiduciary First. And we’ve had a good amount of success. In the last year, we’ve had up to 10% of our folks take part in planning for just their daily budget, their kids’ college, as well as financial planning for their retirement. And we look for our folks to take it on in a bigger way going forward. What we’ve got is we’ve got a financial wellness survey that we’re going to do in the fall, and that’s going to guide our plans for 2020. So we’re excited about doing that as well.
Fred Barstein:
So you want to make sure … this is what you think people want and you’re going to make sure and use a survey and then implement. How do you think you get more people engaged? Because 10 percent is good, but obviously that’s not where you want to stop.
Phil Hubbell:
No. The key is communication, I think. And we have a number of events where we get big groups of our folks together. And so we’re making sure that we put the right folks in front of our people. And the great thing about this particular program that I’ve mentioned is the people are so approachable and so genuine that our folks don’t feel intimidated by the sounds of the words, financial wellness.
Fred Barstein:
The Participant Effect in your advisor, Fiduciary First-
Phil Hubbell:
Yes.
Fred Barstein:
Is doing that. That’s great. Thank you. Thanks for sharing that. And so just final question, a couple of things you picked up that you may want to take back. I know you’re doing auto enrollment, auto escalation already, so what’s left?
Phil Hubbell:
The encouraging thing for me at today’s session, the biggest single point is the most important is the enrollment of folks who are not in the plan today in our 403(b) plan. We have 52.2% in the plan right now and that’s poor. And it’s mainly because there’s a whole group of folks who we didn’t force to enroll, not force, but we didn’t enroll in the plan and give them the option to opt out. And I heard some really encouraging words about the fact that wasn’t a big deal for most companies that were here today.
Fred Barstein:
Right. Re-enrollment is-
Phil Hubbell:
Re-enrollment.
Fred Barstein:
Well, great. Well, thanks for your time.
Phil Hubbell:
Thanks.
Fred Barstein:
And thank you for watching 401k TV. Please stay tuned.
