Driving Financial Wellness For Employees
The concept of wellness has long been an integral thread in the fabric of human resources.
But in recent times its definition has expanded from covering solely the traditional “emotional” aspect of wellness to incorporate the idea of employee financial wellness as an important area of concentration for the HR function.
Financial stress has a significant impact on both the physical well-being of employees and their workplace productivity,
says an Alliant Credit Union report into employee financial wellness in the workplace.
The report included a survey of HR policymakers, 65% of which come from companies who offer employees financial retirement planning. 52% had medical and healthcare planning schemes in place, while 44% provide confidential employee finance self-assessments.
Services of this nature can dramatically improve the workforce’s grasp on their personal monetary situation. The anxiety and worry that comes with financial insecurity can distract the focus of talent away from their roles, which has a deadly effect on engagement and productivity. In this sense, many companies regard financial wellness services as an investment in their employees, who in turn reward executives by being better performers.
The results of a Gallup poll into financial issues showed that 60% of U.S. adults were “very or moderately” worried about not having enough money for retirement, while 55% were concerned about the likelihood they would be able to cover the cost of any unexpected medical treatment.
To incorporate a financial wellness program into your benefits package, HR should first assess the workforce environment through surveys, interviews and direct communication to determine what kind of advice or guidance is most needed.
Each program should directly correlate to the benefits offered by the company, so retirement planning advice should be tailored on the organization’s specific retirement package in order to make the sometimes complicated world of compensations as transparent as possible. Strategies which align current demands with existing policies are the best way to maximize prosperity.
These programs can also incorporate ways to prepare for unexpected financial difficulty, such as deaths, injury and medical costs which impact talent monetarily as well as emotionally. HR can pass on business-minded financial knowledge and advice for these eventualities, reducing the effects of stress if and when they occur.
After defining a specific strategy, HR should work to market their programs to employees internally, and also to potential candidates during the recruitment process as an added value. Establish in-person advice sessions, seminars or online discussions that can bring the workforce together and provide a solid support network.
Savings plans are another indispensable technique the People Operations team can encourage throughout the workforce, and providing information on eligible compensations that can aid employees in reaching their personal financial goals will go a long way in reducing worry.
While HR’s strategies will always be closely aligned with the wellness of talent, in a turbulent economy personal finance is a growing challenge facing employees in every area of industry.
Money wellness programs provide value, increased engagement and improved job satisfaction for all levels of employees, from those in lower paid entry-level roles all the way up to managerial executives and leaders.
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