Providing financial wellness benefits: A Q&A with Dana Rogers

HR teams have taken a more holistic approach to employee benefits that includes both mental and physical wellness, but one key aspect is still missing from the mix: financial literacy and wellness. With inflation and cost of living continuing to skyrocket, financial stress remains a top source of stress for Americans – and they’re looking to their employers for help.

Dana Rogers, vice president of people & great work at O.C. Tanner, discusses how financial wellness benefits boost employee happiness and fulfillment rates at work and share ways to incorporate education into the benefits stack from courses to investment support.

How do you define financial wellness benefits and what does a robust program consist of? How does it differ from current benefits like retirement funds?

A robust financial wellness program provides multiple types of resources for employees to utilize based on their individual needs. Retirement benefits are an important part of a financial wellness program, but there are even more opportunities to support employees financially like educational resources, investment resources, and 1:1 guidance from financial advisors. It can also include more tangible benefits like employer-contributed health savings accounts or profit-sharing bonuses.

The key to building a financial wellness benefits program is to identify what your employees need and find ways that the organization can reasonably assist them in those needs. For example, when inflation hit its peak, O.C. Tanner provided a $250 gift card to all of our employees that they could use for things like groceries or gas. It’s all about meeting your employees where they are and staying in tune with the struggles they’re facing to help alleviate some of their stress.

How do financial wellness programs help in creating a more engaged and fulfilled workforce?

Financial stability is a key component of overall wellness that is often overlooked, so providing resources that help employees become financially stable or improve their financial standing directly contributes to their well-being in life and at work. Employers can also help reduce finance-related stress through education and investment assistance – which is a top concern for most Americans. This approach helps them show up to work energized and ready to make meaningful contributions. Addressing every aspect of employee wellness positively impacts performance and drives a more engaged and fulfilled worker.

How can employers ensure that their financial wellness programs are inclusive and accessible to all employees, regardless of their financial knowledge, job or background?

Not everyone has the same knowledge base or financial standing, so when developing a financial wellness program, it’s vital to keep in mind that different people will need different resources based on their starting point. For example, some may lack an understanding of proper budgeting, while others may want to find the most strategic investments and diversify their portfolios. These are two scenarios that need a different approach and level of assistance, so developing a diverse array of resources will allow all employees to utilize the program regardless of their background or job responsibilities.

What steps can organizations take to begin implementing effective financial wellness programs as part of their benefit stack?

Review existing financial benefits to find potential gaps that need to be addressed. It’s also valuable to invest time to understand what financial challenges are present and if the organization can reasonably provide resources to help address those. For example, many younger generations are struggling to buy a house with the high cost of living and increased interest rates. In this instance, it’s important to understand the housing market where the organization operates and if there is any 1:1 assistance they can provide to employees to help figure out a solution – can they move farther away and the organization can provide a travel stipend, subsidized transportation passes, or hybrid work schedule?

It’s also important that once implemented, HR teams and leaders consistently remind employees of the resources available to them through the financial wellness program. Employees may be slow to adopt these benefits because they’re new, but constant refreshers on the importance of financial stability and wellness will be key to facilitating use among employees.

Related: Employees want financial wellness, but what are they really asking for?

What are the long-term benefits for companies that invest in comprehensive financial wellness programs for their employees?

Companies offering financial wellness programs foster a more engaged and fulfilled workforce, enabling employees to excel in their roles and drive organizational objectives effectively. By addressing employee concerns such as financial wellness through tailored benefits, organizations cultivate trust and loyalty, which can help mitigate the high costs associated with turnover. This approach, known as practical empathy, serves as an excellent retention strategy. Employees who perceive empathy from leaders and witness actions are 1,388% more likely to report above-average engagement and have an 896% higher likelihood of forming a strong bond with the company. Additionally, they are 718% more inclined to advocate for the business, which can help attract top talent.

The inclusion of comprehensive financial wellness programs further enhances the appeal for top-tier talent, as employees increasingly evaluate the overall benefits package offered by employers. When organizations actively listen to employee needs and provide support both within and outside the workplace, it cultivates a sense of belonging and fulfillment, leading to positive organizational outcomes.