Do you think your employee’s personal financial situation matters to your company? What if I said over 1/3 of your workforce spends on-the-clock hours dealing with their personal financial situation? The reality is that financially stressed employees are less productive and less engaged at work, and that affects your bottom line. Providing financial wellness programs that address a variety of issues from debt management, college cost, and budgeting can not only help your employees become more active at work, but it can also increase loyalty as it shows them you care about them as a person not just a worker. Take a look at the following 5 warning signs that your workforce may be financially distracted. Do you need to implement a financial wellness program? Are you curious just how much you could increase productivity? Contact me to discuss.
Financial Wellness has come into focus recently as employers have been exposed to the negative side effect of fiscally unhealthy employees. We have seen health and wellness programs around for decades doing such things as giving out pedometers to employees to encourage them to take more steps, offering desks that you can stand at, and even offering discounted gym memberships. Those are all great strategies to improve physical wellness but the burden of financial stress on employees and what that does to their productivity has largely been overlooked.
Financial Wellness is a term used to describe and answer to a cry for help. For many years, companies and financial advising firms have been focused on retirement readiness, but people were trying to tell us we cannot begin to prepare for retirement if we can’t keep our heads above water today! Unfortunately, for a long time those cries fell on deaf ears as the industry went through a period of “plan design tactics” where they would automatic enroll people in their 401(k) plan and even increase their contribution every year automatically. Both auto-enrollment and auto-escalating contribution are usually great ideas but this did not address the real problem or get to the heart of the participant’s pain today.
Financial Wellness programs, at least the good ones, should be focused on educating and encouraging employees to gain financial freedom through processes that are easily implemented and offer some form of personal accountability. The benefits not only for the employee but also for their employer are staggering. When employers implement these sort of personal finance education, it sends a clear message to the employees:
“You are valuable, you deserve financial freedom, and
we care about your ability to retire successfully. “
For more information on employee education programs including personal financial wellness topics for your employees, contact me.
Caleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
Toll-Free: 866.695.5162 / Office: 205.970.9088
Birmingham: 1950 Stonegate Drive / Suite 275 / Birmingham, AL 35242