In today’s economy, Americans are worried about their finances, and it spills over into every aspect of their lives, even their work.
Let’s look at this for a minute and you’ll see why having a financial wellness program for your employees is a good thing.
Why Have a Financial Wellness Program for Your Employees?
A recent survey has found that 78% of American workers are living paycheck-to-paycheck. It’s no wonder so many workers say they’re stressed about finances.
But what does this mean for you, their employer?
Employees stressed about their finances are far more likely to be late to work, absent, sick or distracted and unable to work effectively. According to the Chicago Business Journal, 43% of employees who are distracted by finances spend three or more hours a week at work thinking about financial matters or dealing with them. This equates to 150 hours per worker per year in lost productivity. That’s a bundle of lost money that employers will never recover.
These numbers are causing employers to take notice, and more and more are establishing financial wellness programs to help.
5 Steps to Create a Financial Wellness Program
Employees generally need help in four areas: budgeting, debt elimination, saving and retirement planning. A good financial wellness program will address these visible areas while also addressing the invisible problem – poor attitudes about money.
The goal of a financial wellness program is to change employees’ behavior regarding their finances. A change that can result in educating employees how to handle their finances and thus reduce their stress.
So…you’ve decided to offer a financial wellness program to your employees. Where to start?
Your ROI? With a good financial wellness program in place, you might:
It’s a win-win for you and your employees; the program may even pay for itself if you consider the productivity benefits to your company. After all, unstressed employees are happier and happier employees are more productive.
You probably already have different types of wellness plans in your company – smoking cessation, nutrition, fitness. Adding a financial wellness plan to the mix is a natural progression.
Creating an environment where employees feel empowered about their finances is a dialog; we’re happy to help with. At our firm, we feel employee education starts with the plan sponsor. We’re here to provide resources that can help your employees confidently work toward their financial goals.
Jerome Pfeffer, CRC, AIF
INVESTMENT SOLUTIONS GROUP
6020 Academy NE, Suite 206
Albuquerque, NM 87109
(505) 888-4015 Direct
(505) 515-0036 Fax
Securities and Advisory Services Offered Through LPL Financial. A Registered Investment Adviser. Member FINRA / SIPC.