With the current economic volatility highlighted in the news cycle over the past several months, many employees are seeking guidance on how to manage their finances and investments wisely. In light of this, we asked CJ Follini, an adjunct professor at NYU with over 30 years of experience in finance and chief investment officer of NOYACK Alternative Investments, managing over $1 billion in assets under management with diversified experience in asset management, for some practical advice.

Q: What are some practical tips that employers can communicate to employees to safeguard their savings and investments with a potential recession looming?

• Offer educational workshops and webinars, expressing the importance of financial education is the beginning of everything. Action: Host regular financial wellness workshops or webinars focused on topics like building an emergency fund, investment diversification, and budgeting.
• Leverage personalized financial tools. Action: Provide access to personalized financial planning tools, such as budgeting apps or investment calculators that employees can use to manage their finances more effective.
• Incentivize participation in savings programs. Action: Offer incentives for employees who actively contribute to their emergency savings account (ESA), such as matching contributions or milestone bonuses.
• Offer one-on-one financial counseling.

Q: Are there specific programs, tools employers can offer employees to better help them save for retirement? 

A: The most practical recommendation we make to companies for employers' employee engagement is by easily creating an ESA, which is a benefit that allows employees to automatically save a portion of their earnings specifically for unexpected expenses. Integrated with payroll, it offers a convenient way for employees to build a financial safety net without additional effort.