The thinking on financial wellness has evolved a lot in the last few years. It’s no longer just about retirement or education — it’s about how to make progress toward your financial goals and reach financial independence using tailored solutions.
Part of that is recognizing that your employee population is varied, and people will be in different mindsets and life stages, changing their financial concerns. Say “401(k)” to the 22-year-olds just out of college and they might just tune out. However, they’re more likely to relate to saving money to move out of their parents’ house or pay off their student loans.
A financial wellness program that really works is one that speaks to different members of your workforce in a way that resonates with each and every individual resulting in a highly customized financial experience.
Not having high-quality, relevant data — and enough of it — can be a barrier to organizations as they tailor their financial wellness programs to their workforce. After all, how do you know which vendors and resources to invest in if you don’t have a good idea of what your employee population needs?
Let Your Employees Guide You in Creating a Successful Financial Wellness Strategy.
One approach is to simply ask employees. But self-reporting has its issues. For one, people are likely to give an optimistic version of the true state of their ‘financial lives’ when they are put on the spot in a survey from their employer. In other cases, people genuinely don’t know the answers.
For example, their mortgage payment is deducted from their paycheck each month, it’s been deducted in this way for years, and they don’t know how much they have left to pay off. Employees can also resent their employers nosing into their financial affairs, even if it’s intended to help them.
A growing number of employers across the globe are recognizing the importance of financial wellness — they know that when employees are comfortable with their ability to meet their financial obligations, they’re more likely to be productive and engaged at work. However, financial wellness programs must be designed with the diversity of financial circumstances of individuals in mind.
Learn More About Financial Wellness and Improve Wellbeing of Your Employees. Read the rest of this series: