Neglecting financial wellness programs can have detrimental effects on both employers and employees. For employees, the absence of these initiatives often leads to increased financial stress, which can significantly impact their work life. Financial worries result in decreased productivity, higher absenteeism, and lower job satisfaction as employees struggle to manage their finances without adequate support. This creates a disengaged workforce, ultimately affecting team performance and morale.
For employers, failing to address financial wellness can lead to higher turnover rates and difficulty attracting top talent. In today’s competitive job market, employees seek comprehensive benefits that support their financial health. Companies that do not offer such programs may find it challenging to retain their best employees, who might leave for organizations with better financial support. Additionally, the costs associated with high turnover—including recruiting, hiring, and training new employees—can be substantial. Without a robust financial wellness program, employers risk a less stable and productive work environment, negatively impacting the company’s bottom line and overall success.
At the conclusion of a TPSU program at the University of South Florida, Fred Barstein, President and CEO of TPSU, interviewed Brent Sheppard from Cadence Financial Group. Brent described financial wellness as a flexible term, unlike the more straightforward 401(k) plan. He highlighted that financial wellness programs can significantly benefit both employers and employees. From an employer’s perspective, these programs can be powerful recruitment tools and enhance the benefits package. The scope can vary from providing access to financial tools through record keepers to developing comprehensive, year-long initiatives tailored to employees’ financial stresses.
Effective financial wellness programs should address various financial topics beyond retirement plans, such as estate planning, personal financial management, and debt reduction. To increase engagement, employees often need incentives to participate in educational sessions or utilize available resources. The goal is to help employees manage their finances better, reducing financial stress and improving workplace satisfaction and productivity.
Comprehensive programs could include personalized financial advice, access to planning tools, and regular educational workshops. By understanding employees’ specific financial challenges and providing targeted support, employers can create a more engaged and loyal workforce. These programs not only offer immediate financial relief but also foster long-term financial security and stability, contributing to a robust organizational culture.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of TPSU. Just completed a program here on the University of South Florida campus in Tampa. I’m here with our adjunct lecturer, Brent Sheppard. He is from Cadence Financial Group.
Brent Sheppard:
Yep.
Fred Barstein:
Okay. Okay if we ask you a few questions?
Brent Sheppard:
Certainly.
Fred Barstein:
Very good. So before we get started, tell us a little bit about yourself and Cadence.
Brent Sheppard:
So we are a team of five under a large national registered investment advisor and broker-dealer. My role on the team is specifically, workplace retirement plans, whether it’s 401(k), 403(b), non-qualified deferred compensation plan.
Fred Barstein:
Got it.
Brent Sheppard:
So that’s my lane that I stay in.
Fred Barstein:
And the others are more wealth advisors?
Brent Sheppard:
Yeah, they work on the personal side and also do a lot of employee education for our team.
Fred Barstein:
Right, that’s a great mix. So I know financial wellness comes up a lot. We also know the engagement is relatively low, but how can an employer use financial wellness to benefit themselves and their employees?
Brent Sheppard:
Well, I think financial wellness is such, as we know in the industry, such a loose term, that it isn’t like having a 401(k) plan. Either you do have a plan or you don’t have a plan. So I think, from a recruitment standpoint, from advertising your benefits, to say you have a financial wellness program, the definition of what that financial wellness program, really is up to you as the employer or plan sponsor. So that could mean having the record keeper that you work with give the employees access to a financial wellness tool through their own product or through a single sign on.
I mean, or you could take it the complete extreme of that where it’s, you’re creating a customized financial wellness program outside of the 401(k), that you’ve surveyed your participants, that you know what their financial stress is, you develop an entire year long calendar where you’re going to provide content of all the issues that employees have, and then you’re going to incentivize those employees. Because most employees won’t engage unless they’re incentivized. So how do you get them to come to the group education meetings or listen to the videos, everything that is not about the 401(k), It’s about estate planning, personal financial management, paying down debt. So I think it’s a really neat tool for an employer to use, say they have it, and then they’re able to really kind of develop what it means to them as an organization.
Fred Barstein:
Right, to do it. And I guess, it helps too to have your partners that are doing individual wealth, so that financial planning for those that want it or can afford it, so.
Brent Sheppard:
Yeah.
Fred Barstein:
Great. So I know you’ve done a couple of TPSU programs. Why should a plan sponsor come to a TPSU? What are they going to get out of it that you think is most beneficial?
Brent Sheppard:
Yeah. So just my take away from today, and also, seeing it during my first program, the networking that happens between just the many in the HR professional or even on the finance side, the networking that happens as they do breakout sessions during lunch, I just overhear, “Oh, you’re doing this? Well, I’d love to try that.” Or, “We’re in the same exact industry, let’s connect on LinkedIn or share our business cards.” So just like we have our own industry, the networking that happens, I see it in the plan sponsor university. I think that’s a really neat benefit, not only getting all the great content and all the information and ways to help improve their retirement benefit plans, but just for the individual attendees to start to create a network of people thinking about the same stuff that they’re having to deal with at their organization.
Fred Barstein:
Great. Well, thank you. Thanks for being a TPSU lecturer, and thank you for watching 401kTV. Please stay tuned. Thanks.
