It’s time to personalize financial wellness for all employees

Finances are personal. Financial challenges are often difficult for employees to discuss openly with their employer. So, what does this mean for financial wellness programs offered as employee benefits? Employers play a critical role in ensuring that the financial wellness program offers resources and solutions unique to each individual participant, tailored specifically to their needs, goals and current financial position. For a financial wellness program to benefit everyone within an organization and help them make positive behavioral changes, it must recognize that each situation must be addressed differently. The good news for employers – AI-driven fintech solutions remove the burden of tailoring the program to each employee.

Implementing programs that work

At the height of the pandemic when many employees had nowhere else to turn, they looked to their employers for help. This was a turning point for the financial wellness industry. Many organizations had to face the reality that the financial support they had to offer was very limited.

While employers began to see the value of implementing financial wellness programs, many didn’t know what the right solution looked like for their organization.

Here are questions every employer should be asking to ensure they are offering effective tools and solutions to support their employees’ financial journeys:

• For those who have limited knowledge of their finances, how could they assess their personal financial situation?
• Is there a financial professional they can turn to for guidance on how they can curtail their spending?
• What money management resources are available to help employees modify their budget to account for pay cuts, missed bonus opportunities, and lost commission?
• Can employees access an emergency savings account through their employee benefits?
• Are there educational tools or calculators to help employees determine what makes the most sense financially if they need to make adjustments?
• What tools are available to help employees who need the option to control their cash flow to ensure they can meet financial obligations, like paying bills on time?
• Is there a better option for those who need more financial assistance but don’t want to take out a 401(k) loan?

Most employers will have more than one of these questions to answer. That’s where a holistic financial wellness program adds immense value, allowing individuals to identify where they are on their journey to financial well-being and identify solutions that will help them progress down the path. A financial wellness program should provide direction on the most relevant resources, tools, and solutions to improve their well-being, based on their unique financial situation.

Participants will be motivated and encouraged to continue down the path and invest their valuable time if they see positive changes. It is critical for the program to help individuals establish goals; otherwise, there is no way to measure success and the individual may lose motivation.

By providing a holistic financial wellness solution, and more importantly, reminding employees of the resources within their benefit which can assist with their current needs, employers are demonstrating their concern for the employee beyond the workplace as well as their investment into employee’s financial well-being.

The financial learning curve

While not all employees feel comfortable asking their employers for help, thankfully there are often clues that can prompt the employer into supportive conversations. Some of these clues could include:

• Requests for 401(k) loans
• Requests for paycheck advances
• Drop in employee productivity and focus
• Emerging pattern of tardiness or absenteeism

Conversations will not be easy but encouraging an open dialogue gives employees confidence and trust that the organization is looking out for their best interests, not just their on-the-job performance.

So, what’s next for employers and employees?

A holistic financial wellness program will not only provide resources and tools to support individuals’ spending, saving, borrowing, and planning – the four pillars of financial wellness as defined by the Financial Health Network – but will also address their unique situation so they see the ultimate return on their investment and commitment to putting in the work to improve their financial well-being.

As we transition back to a more normal way of life, for employees and employers alike, making financial health and stability a priority will not only help organizations return to pre-pandemic productivity but to surpass it with improved employee retention and more focused, engaged employees.

Dave Kilby is CEO and President of FinFit.