Providing a financial wellness benefit to employees can help them attain financial resilience. According to a study by Morgan Stanley, lack of financial resilience \u201cadds healthcare costs to U.S. businesses of approximately $190 billion dollars per year…Productivity also takes a hit, as employees with low resilience tend to be more distracted at work (and thus more prone to workplace accidents) and less productive.\u201d (1)<\/p>\n
The first step in designing a financial wellness program is to assess your specific employee needs, using surveys or focus groups. (2)<\/p>\n
Financial wellness programs require flexibility, because the needs of employees will differ based on their personal history and life cycle.\u00a0 Most programs will provide access to a financial planning coach, who is typically a neutral third party.\u00a0 The coach should be aware of the benefits the company offers, in order to advise the employee on which benefits to utilize.\u00a0 Examples of benefits to consider during financial planning can range from matching retirement plan contributions to discount programs and commuter passes.<\/p>\n
In the end, the employee must decide for themselves what financial practices to adopt, but in doing so the employee can reduce their financial stress and feel supported by their company.<\/p>\n
The benefit of a financial coach doesn\u2019t end with the completion of a financial plan.\u00a0 Rather, the coaching should continue throughout the employees\u2019 tenure, especially when entering new life stages (e.g. marriage, birth of children, etc.).\u00a0 Remember to publicize the financial wellness program and remind employees to periodically review their financial plan.<\/p>\n
(1) https:\/\/www.morganstanley.com\/atwork\/articles\/financially-resilient-workforce<\/a><\/p>\n