How to help your employees manage their financial wellness
When people talk about employee benefits, they usually focus on health insurance, 401K programs, employee support programs, and maybe even healthy vending machine snacks. These are all important benefits, but today’s employers should also take stock of their employees’ financial health – the ability of their employees to make confident financial decisions that will enable them to avoid stress today and for a secure financial future tomorrow to care . A company-sponsored 401K plan is a good place to start, but there is so much more that companies can offer to provide good financial support for their employees.
Amid the COVID-19 pandemic and its economic impact, financial well-being has never been more important. According to Alright Solutions’ 2020 Employee Wellbeing Mindset Study, factors like debt and overall financial health can take a significant toll. In fact, 24% of workers surveyed in the study report that their debt is affecting their quality of life, and 61% fear they may not have the financial means to retire whenever they want. PWC’s 2020 Employee Wellness Survey confirms these points, showing that 54% of respondents identify money matters as their greatest stressor and 38% say they saved less than $ 1,000 on emergencies. If you think financial stress is not affecting workplace performance, think again: 49% of employees say they spend three or more hours a week thinking about their personal finances, and 28% say their productivity at work has been impacted by financial concerns. In addition, Financial Salary reports that decreased productivity, absenteeism, and turnover related to financial stress account for 13% to 18% of the total annual wage bill of companies.
All of this data points to the tremendous value companies can deliver to their employees through on-site financial wellness programs as part of their overall health and wellness benefit packages. At KeyBank we offer an on-site program called Key work®, which specifically focuses on the financial well-being of our business customers’ employees, at no cost to employers or employees. While other financial institutions may work with employers to offer their employees banking products and discounts, Key @ Work goes further by taking a comprehensive approach to the entire financial picture of employees. Our mission is to provide personal, ongoing professional financial advice to an employer’s employees to improve their financial prospects and help them achieve their financial dreams. Key’s uniquely personalized approach to our financial program in the workplace has resulted in remarkable results and awards from our customers.
Employers considering a financial wellness program should look for the following services:
- On-site sessions for employees to learn about financial wellbeing and best practices, to understand their personal finances and to take control of their finances;
- Individual advice that is tailored to the individual financial needs of the employees;
- Online resources that allow employees to track their expenses, set budgets, and document their progress toward specific financial goals;
- Banking and financial products that support employees’ financial goals.
Financial wellbeing is a multi-generational need, and a well-designed program should take into account the entire career path of your employees. It can also help you as an employer – by showing your employees that you are invested in their overall health and future, by helping them attract and retain talent, and improve employee engagement and performance, leading to better ones Leads productions and results for your company.
About the author: As Regional Retail Leader, Louis Hoxha is responsible for KeyBank’s branch network across the Atlantic, including Westchester and Fairfield Counties. He can be reached at 845-620-4425 or [email protected]
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