Financial wellness programs in the workplace

Read More. This report provides insights about how financial wellness programs can be tailored to young, lower-income workers. Efforts to build financial wellness at work, like offering financial services as workplace benefits, are intended to help employees feel For some employees, this simply means using software to keep track of financial goals.

For others, having a financial coach or adviser to review their finances and offer suggestions does more to keep them accountable and engaged with their goals. The value of a good wellness solution has an impact across the organization, from employees to management and other decision makers. A high level of financial wellness gives employees the ability to make better, more informed decisions and manage a successful long- term strategy.

When employees have a comprehensive understanding of their finances, they can create effective strategies for dividing and potentially automating their paychecks between bill, savings, investments and other commitments. Employees will be equipped with the skills, knowledge and tools necessary to develop and support successful financial outcomes.

In fact, studies show that people who regularly plan ahead for emergencies and other irregular expenses are 10 times more likely to be considered financially healthy than those who don't, regardless of income or other demographics.

Experts point to this as evidence that positive financial habits have more impact on a household's financial well-being than an increase in income. A report by the Consumer Financial Protection Bureau found that a lack of disposable income is one of the most commonly cited reasons that employees give for not participating in retirement plans and other employer-provided financial benefits.

However, if employees use their current fund more effectively, they may find the income to put toward their future. Employers feel the effects of their staff's financial health as well.

Employees in stressful financial circumstances are less productive and less likely to remain at their jobs. PatMilligan, Senior Partner at Mercer, found that 22 percent of employees report missing at least one day of work to handle financial problems, 15 percent reported spending at least 20 hours a month working on personal financial tasks at work, and a full 20 percent have had to resign due to financial stress.

Moreover, employees often have the opportunity — and the obligation — to make personal finance decisions at work, such as choosing between options for health care coverage, life insurance, and retirement plans. Providing money management training can steer them toward the best choices to secure their individual futures.

But there are less obvious benefits to the employer as well, including lower benefit costs, improved company culture and morale, and higher employee loyalty — which may reduce turnover rates. Best Practices for Financial Wellness in the Workplace. Contact us. Interested in a financial wellness program? Let us contact you.