As open enrollment is already underway, employers have an opportunity to reassess their benefits programs to focus on supporting employee financial wellness. Today’s workforce faces mounting financial challenges, from economic uncertainties to rising living costs, leading to increased financial stress. Comprehensive financial wellness benefits are no longer a ‘perk’—they’re a necessity.

Forward-thinking employers can implement several financial strategies to help employees access affordable credit, save effectively for retirement, and make informed decisions about their benefits. Some strategies organizations can implement to help their workforce prioritize and prepare for retirement include educating employees, matching student loan contributions, connecting employees with financial advisors, and enrolling new employees automatically into retirement plans. By prioritizing employee wellbeing, companies can unlock a culture of performance and innovation, ensuring sustained success.
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Enhancing access to credit

Access to affordable credit is one of the foundational aspects of financial wellness. Many frontline workers and others face the burden of high-interest debt or limited access to affordable credit, with groups such as Gen Z and immigrants being disproportionately affected. According to the Bureau of Labor Statistics (BLS), immigrants make up over 18% of the U.S. labor force, and Gen Z is projected to account for 30% of the labor force by 2030. Employers have the ability to offer benefits that can improve financial wellbeing for employees, including providing access to affordable credit. Such programs can be transformative, providing employees with a safety net during financial emergencies without jeopardizing their retirement savings.
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Encouraging retirement savings

Another crucial pillar of financial wellness is retirement savings. Employees may resort to early withdrawals from their retirement accounts to cover short-term cash gaps, which can compromise their long-term financial security. Employers can help to mitigate this risk by offering financial coaching and alternative credit options.

Employees may sometimes view early withdrawals as "borrowing from themselves," but this approach can potentially impact their long-term financial security and retirement goals. Employers have an opportunity to help employees understand the risks associated with early withdrawals and offer alternative options for managing financial needs. By providing access to resources like low-cost loans, financial coaching, or third-party wellness programs, employers can support employees in protecting their retirement savings. Additionally, financial planning tools can encourage employees to make more consistent contributions and work toward maximizing their retirement savings.

Streamlining the enrollment process and incorporating automatic contribution escalation can also boost participation and retirement savings, ensuring employees stay on track.
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Benefits utilization

The complexity of benefits options can lead to suboptimal choices by employees. To address this, HR teams should prioritize guidance and dedicate time to ensure employees fully understand and utilize their benefits.

During open enrollment, employers can offer a range of resources to help employees navigate their options, such as:
●      Workshops and webinars: Sessions explaining various benefits, including health insurance, retirement savings options, and financial wellness programs.
●      One-on-one consultations: Access to financial advisors who offer tailored advice based on individual employee needs.
●      Interactive tools: Online platforms that allow employees to simulate different benefits scenarios and understand the potential impact of their choices.

By providing employees with the right knowledge and tools, HR and Benefits teams help them make informed decisions that align with their personal financial goals. This not only improves individual wellbeing but also helps to enhance overall organizational productivity.

Related: Employees with money worries? Financial wellness to the rescue
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Fostering a financial wellness culture

Cultivating a workplace culture that prioritizes financial wellness goes beyond offering specific programs. Employers can drive a lasting impact by fostering open conversations about financial health and helping to ensure resources are more accessible.

Employers can integrate financial wellness into their overall health and wellness programs. Regular communication about the importance of financial health, success stories from employees who have benefited from available programs, and ongoing support can help to reinforce the company's commitment to employees' financial wellbeing.

Employers should regularly review and update their benefits offerings to ensure they remain relevant and effective in addressing employees' evolving financial challenges. Gathering employee feedback through surveys and analyzing utilization data is essential. HR teams and company leaders must also stay attuned to emerging trends and best practices in benefits solutions and financial wellness.
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Conclusion

Forward-thinking employers are in a unique position to support their employees’ wellbeing beyond a paycheck. Financial wellness is an integral part of overall wellness, extending far beyond traditional healthcare plans. By enhancing access to affordable credit, encouraging retirement savings, and offering comprehensive benefits education, employers can significantly improve their employees' financial stability and peace of mind.

In return, organizations reap the rewards of a financially secure workforce—reduced stress, increased engagement, and improved productivity. Supporting financial wellness is not just an employee benefit—it’s a strategic imperative that drives long-term success.

Einat Steklov is the CEO and co-founder of Kashable, a financial wellness company that brings an innovative approach to consumer lending by providing access to socially responsible, low-cost credit to employees. As an Israeli immigrant, Einat witnessed firsthand the difficulty of establishing financial security in the U.S. As a result, she founded Kashable in 2013 alongside entrepreneur Rishi Kumar, to help transform the way working Americans access credit.