January is financial wellness month — a refreshing theme after a busy (and expensive) holiday season. But on a deeper level, it's also an excellent opportunity to start the new year off on the right financial foot. And that's true in the workplace, too.
As organizations juggle managing both costs and talent amid the question of a looming recession, workplace benefits are an increasingly strategic tool. In fact, a recent
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With that in mind, here are 3 ways to think through how financial wellness can help both companies and employees shore up financial strength as we weather the storm together.
Make the most of what you have
Whether it's saving on commuting costs or through a 401(k) contribution match, your company's current benefits are already a reservoir of financial support for your employees. So, it's vital to help them fully see and understand how all those benefits fit together as a cohesive support system. Make sure your employees not only know what you offer them today, but how it all fits together into the big picture of how they can improve their overall financial health.
This is foundational, but not necessarily easy. Almost all HR leaders (96%) and employees (89%) recognize that their company needs to do a better job when it comes to helping employees understand how to make the most of their existing financial benefits. To do this effectively without racking up additional costs, start close to home. Think about how you are telling your benefits story in the workplace. Focus on helping employees navigate and maximize what is already there for them. Get more strategic in internal communications and engagement efforts.
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It's not the quantity, but rather the quality of interactions with participants that counts. Focus on guiding employees through their benefits related to budgeting, financial education, managing debt, personal financial planning or coaching, equity plans, education costs, retirement and more. Highlight features like budgeting tools, retirement calculators and self-guided education modules that can help them customize and maximize their experience.
But it's not just about messaging: Make it a dialogue by inviting feedback, gathering data and listening to your employees. Also make sure to connect with your benefits providers and plug into any educational resources or user experience upgrades they may have ready to share out-of-the-box.
Beef up the basics
Just as companies are navigating an environment today that makes budgets and goals tighter, the individuals in your workforce are also juggling their own personal balance sheets and income statements, and they are feeling the same price pressures. A support system that provides personalized service and guidance can be game-changing. For employers, that's your providers and plan advisors. For participants, it's the workplace benefits you provide — so make sure they know that you and your benefits platform are part of their team.
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Highlight how your benefits can help employees have a better relationship with their money. If you don't already, consider offering financial wellness resources such as access to financial planning tools, basic financial education, and personalized guidance from a financial coach or advisor. When access to a financial professional is added into the mix, the potential to build up healthy financial wellness practices compounds. Working with somebody who can help employees make sense of their current circumstances and create a targeted financial plan can help anyone feel less overwhelmed and make progress in their financial lives.
Build a culture of support and inclusion
For workplace benefits to have as much of an impact as possible, employees need to be able to engage with their benefits where and how it matters most — and those moments of truth are not the same for everyone. As technology continues to improve our ability to offer more personalized and self-guided user experiences for employees, we need to match that with an inclusive and supportive culture.
For example, when the workplace celebrates career milestones, welcomes diverse cultural viewpoints and experiences, and acknowledges financial challenges at various life stages, it helps employees feel seen. It also helps them connect their own personal context to the benefits on tap, so they can more effectively bridge their current, personal reality to their vision for reaching future financial goals.
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Strategic support like access to financial wellness benefits and financial professionals through the workplace can go a long way in helping employees personalize their financial benefits and adapt the workplace for their unique needs. Consider questions like, how does engagement with your benefits hold up across different employee segments? Is participation in your equity programs reflective of your overall employee population? Are diverse or underrepresented employee populations asking for or looking for specific financial benefits? Do your benefits truly offer something for everyone and give everyone a seat at the table?
Journey together
We've known for some time that employee financial well-being is a competitive advantage, which is all the more reason to make it a priority in today's challenging environment. Finances are such a significant area of our lives, and employees want and need support from their employers in this area.
Fortunately, it doesn't necessarily require a big budget to create an environment for employees to feel supported to do the best that is possible in their personal finances. Workplace benefits are a tool that can help restore equilibrium and build a stronger foundation for a wide variety of individual financial needs. What matters most in this Financial Wellness month (and always) is how we as employers and providers can come alongside them as they navigate their current circumstances and build a brighter future.
