4 facts on employees' financial wellness and 3 ways employers can help
September 10, 2013 2:22 PM
1. Employees still have significant financial stress.
Over four in ten (44%) of those who are employed and/or their spouse is employed full-time report they are much or somewhat better off financially today than they were one year ago. Yet, 28% have trouble meeting monthly household expenses and 44% say they dont have at least $2,000 in emergency savings for unexpected expenses that occur.
2. Employees bring their financial stress to work.
More than four in ten (44%) full-time workers say they worry about personal finances during work hours.
3. Employees are less engaged at work because of their financial stress.
29% of workers said they spend time dealing with their personal finances during work hours.
4. Financial stress affects employees' productivity.
Of those who say they deal with their financial issues at work, 46% spend an average of two to three hours per week at work doing so.
Solution 1. Help employees reduce debt
Employers can offer internal group programs, online self-help resources and credit counseling service referrals.
In group programs, staff members gather together and learn about topics such as budgeting, intelligent use of credit, and savings either through a webinar or as part of a live speakers audience. However, financial education can also take place on an individual basis and should be an essential component of an employers commitment to a financially healthy workforce. A referral process to a qualified credit counseling agency can be a useful adjunct to the group financial education programs, suggests Halkos.
Solution 2. Give employees access to responsible budgeting tools
By relying on voluntary benefits as a tool to help employees protect themselves against the key risks they face, employers can cost effectively offer a full menu of employee benefits.
Offering non-traditional voluntary benefits like employee purchase programs can help alleviate employees financial stress. Employee purchase programs allow employees to acquire high-ticket products and educational services on a disciplined budgeting plan through payroll deduction.
Solution 3. Encourage retirement investments after debt is taken care of.
Employers can encourage workers who have reduced their debt levels and have emergency cash set aside to invest in retirement programs, suggests Halkos.
Many times employers encourage all employees to participate in retirement programs such as the 401(k) plan. But that is not always the best option if an employee needs to address debt and budgeting issues first.
