Why CFPs are the gold standard for employer financial wellness programs

One of the most attractive features of financial wellness programs is one-on-one support with financial professionals.

This offering gives employees the type of personalized guidance they crave, rather than one-size-fits-all advice that’s not actually applicable to their financial situations or goals. Plus, it takes the task of answering financial questions off of HR teams’ plates—freeing up more time and resources for them to do other parts of their jobs.

But it’s important to know that not all financial professionals are the right fit for employees. In fact, I’d go as far as to argue that certified financial planners (CFPs) are the gold standard in the industry—and it’s in the best interests of your clients to work with these professionals

Why should your clients specifically seek out CFPs? Aren’t all financial professionals the same?

Definitely not. But it’s understandable that so many people believe that. Unfortunately, there are no federal regulations around the titles financial professionals can use, creating a lot of confusion about who does what.

Here’s how CFPs are different from other advisors and why I believe financial planners should be the gold standard for your clients:

1. They take a more holistic approach to finances

CFP professionals take a more holistic approach to finances. This means that, when providing advice to the people they work with, they like to consider every aspect of the individual’s financial situation—from their personal goals to their risk tolerance to their existing savings.

This is vastly different from other financial advisors, who tend to specialize in one area of finances, such as investment management or tax preparation, and only offer guidance in that specific realm. While this is great for people with specific goals, it doesn’t make sense for employers trying to provide the most accessible, impactful benefits for all their employees.

That’s why working with financial planners is a better choice for your clients. Rather than committing to a financial professional who can only help employees with a specific set of needs, a CFP can provide comprehensive, holistic guidance to every employee.

2. They prioritize long-term relationships

Typically, people hire financial advisors when they have a specific question or milestone in mind—such as having their taxes prepared or identifying the best funds to invest in. As a result, these relationships tend to be shorter-lived.

CFP professionals, on the other hand, try to help people understand, manage, and track progress on their finances on an ongoing basis—naturally leading to longer-term relationships. This may be the better option for your clients, whose employees will want to build trust and rapport with the financial professionals they work with.

3. They put the interests of employees first

The most critical difference between CFP professionals and other advisors is that the former follows a formal certification process.

A Certified Financial Planner must complete coursework, take exams, and gain real-world experience to receive their designation. Most importantly, all CFP professionals are bound by the fiduciary standard, which means they have to work in the client’s best interest.

While some financial advisors also abide by the fiduciary standard, this isn’t required for everyone—potentially putting employees at risk of receiving biased or harmful guidance.

4. They’re more inclusive

It’s common for financial advisors to only work with high-net-worth individuals. In other words, if your client decides to work with an investment manager, a significant portion of their workforce may be excluded. This inevitably will negatively impact how employees view their benefits package and, as a result, the company culture.

Financial planners are different. Their role focuses on adapting to the needs of the individuals they work with, and they have experience working with people of all income levels, backgrounds, and life circumstances—making the financial wellness program much more accessible to the entire organization.

A few final tips for working with CFPs

If you’re sold on the idea of having your clients work with CFP professionals, here are a few parting tips I want to pass along:

• Check their credibility. Always, always look for fiduciaries, which is the financial industry’s highest standard. And make sure the financial planners you vet have proof of certification. Checking these two boxes ensures your clients’ employees will receive unbiased guidance.

• Look for diversity. Whether you decide to build your own network of CFPs or use a vendor’s existing one, make sure it’s diverse. By having financial professionals who represent a wide range of backgrounds, you’re giving your employees the option to work with someone who can relate to them on both a personal and professional level.

• Encourage a holistic approach. Everyone in your client’s organization will have unique financial goals, so you want them to choose someone who can take a personalized, flexible approach when providing advice. It’s great if the financial planner you work with has a specialty, but it’s essential to make sure they’re also comfortable taking a holistic approach when working with employees.

Hopefully, this article helps clarify why I’m such a proponent of using financial planners over any other type of financial professional. Making this small adjustment to your client’s financial wellness programs will take it from good to extraordinary and ensure they see better outcomes from their investment.