If your employees are financially stressed-out, it could lead to a disaster for your business. Financially dissatisfied workers tend to be less productive, less engaged, and may even end up being a financial liability for the company as well. Businesses around the world are recognizing the importance of financial wellness in the workplace. Some of the best organisations to work for regularly hold financial education workshops and sessions to keep their staff in-the-know about all the important things related to finance.
A recent study by the Consumer Financial Protection Bureau (CFPB) pointed out that employers in the USA that offer such programs can save almost $3 for every dollar that they spend. This is because having a financially secure workforce leads to numerous changes in the work space, like reduced absenteeism, and more productive and efficient workers. The reason is simple. Poor financial stability cause stress which causes more medical problems which cause more financial expenses and the cycle repeats. With their financial future secure, employees have one less thing to worry about in the workplace.
How The Best Companies Run Their Financial Wellness Programs
Before you jump ahead and start looking for financial advisors or wealth management firms that provide financial education, here are the key features that make up an effective financial wellness program.
- Should be Unbiased: It should be run by an unbiased financial expert or team of experts who focus on helping employees make informed financial decisions. The experts may even offer individual advice to employees in order to cater to their individual requirements. In no way should a financial wellness program be used to promote or sell products. The participants should be given an unbiased opinion of the investment options available to them.
- Should be detailed and holistic: a financial wellness program must be detailed and holistic covering all the phases of an employed professional’s life. This includes everything from tax planning and short-term investments to more serious topics like retirement planning, estate planning, and wealth management. The program must also take into cognizance the employer benefits offered by your company in order for the employees to derive maximum benefit out of these sessions.
- Should provide personalized attention: There should be a fair level or personalized attention provided to the employees. While building a financial plan, generalized advice cannot be given. Each individual has a different financial standing, financial goals, and risk appetite, which must be factored in while building a financial plan. There must not be a one-size-fits-all approach to a financial wellness program or else the entire purpose of the sessions is defeated.
- It is important to understand that a financial wellness program is not a casual event that comes and goes. Financial planning is a process and both the program coordinators and the participants must be aware that it is an ongoing process that takes time and patience. The support and knowledge which can be accessed by the participants must not be used for one-time changes but to be taken advantage of over a longer period of time. This gives the participants incentive to make financial planning and financial awareness a part of their day-to-day lives.
The features described above will be evident in the financial wellness programs being offered by some of the best employers in the world. By extending their assistance on a topic that many young professionals struggle with, employers are able to make a real difference in their lives rather than just offering their employees a paycheck.
Find out more about how financial wellness programs can help your business become better and help your employees be more financially secure. Get in touch with a certified financial advisor at IMMPL today.