Employees are under a lot of financial stress. Employers want to help them, but they're not always sure how.
That's according to research from State Street Global Advisors (SSGA), which found that 61 percent of employees experience moderate or high levels of financial stress.
Employers are often unsure of the best way to provide help, considering employees' diverse income levels, understanding of financial concepts, and cultural taboos surrounding the discussion of money issues.
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SSGA and Benz Communications recruited a group of companies, including Los Alamos National Laboratory, and Harvard behavioral economist Brigitte Madrian, to create a framework that companies can use to develop financial wellness programs.
Late in 2014, the group convened for what it termed a financial wellness "hackathon" to come up with best practices for helping workers achieve greater financial security.
Among the working group's recommendations were these six:
1. Understand the financial landscape. Employers need to understand employees' financial stressors and priorities at work and at home when they're putting together a financial wellness program.
2. Define financial wellness for your organization. Companies have to consider employees' varying needs when figuring out just what financial wellness means—and they also have to realize that it's not static and will change.
3. Lean on best practices. Engage employees by implementing benefits that matter to them, like 401(k) matching contributions; use smart benefits design, such as auto features; and communicate with employees to be sure they understand.
4. Explore established and emerging solutions. With lots of financial wellness programs and providers around, look around to find what works the best for your workplace and your employees.
5. Overcome challenges. The group has suggestions on how employers can, among other things, engage employees and get the most out of limited resources.
6. Build a business case. Research indicates that the financial impact of workplace health and wellness programs saves up to $3.00 for every dollar spent. Although financial wellness differs from physical wellness, the group recommends looking at financial wellness programs the same way, including benefits such as decreased absenteeism and increased productivity.
To read more about the framework the group created, visit Benz Communications.
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