How employers can promote the financial health of their workforce through benefits, education, and resources
Our report, Mind, Body, and Wallet: Workforce well-being in the pandemic era, found that financial wellness has a significant effect on overall well-being and is likely to impact both physical and mental health. With 1 in 5 workers reporting a significant negative financial impact because of the pandemic, employers are seeking to become partners in the financial health of their workforce to help drive positive change.1
Offering employee benefits that focus on financial wellness also impacts an organization’s ability to attract new hires and retain existing talent. If potential recruits know about benefits package in advance it can be a deciding factor to join a company.2 And for current workers, financial stress can influence their retention and loyalty. Those who are stressed about their finances have a greater chance to be attracted to another company that has programs in place to address financial well-being.3
The number of workers that have insurance coverage and retirement savings has decreased over the last five years.4 Without the programs in place to protect their finances, employees can be left vulnerable in cases of emergency. Employers have an opportunity to offer financial benefits that can provide a stable financial backbone — allowing workers to build a future that’s financially secure. These employee benefits can include:
- Life insurance
- Disability insurance
- Family and medical leave
- 401(k) retirement plans
While 3 in 5 organizations agree that they address employees’ financial health — including their ability to pay monthly bills and invest in the future — only 1 in 5 employees believe their employer does a good job at educating them on financial planning and how to achieve their financial goals.9 Employers can provide a high-value benefit by offering financial literacy programs to their workforce that provides a foundation for strategically managing their finances.
Below are resources for employers to learn more about the importance of providing financial literacy opportunities and educational information to pass along to employees.
Insights into the role employers can play in helping their employees build financial literacy, position themselves to better overcome financial challenges, and strengthen their financial confidence.
For starters, communicating your benefits offering to employees is critically important. Many employees remain unaware of the benefits their organization offers and may miss out on programs and resources that would help to improve their financial situation. In addition to your benefits offerings, providing educational content that can be shared with employees to help increase their financial literacy around their benefits and other noteworthy financial products can be helpful in expanding their awareness.
In our recent Guardian Study of Financial and Emotional Confidence™, we asked working adults what impacts their emotional and financial well-being. Among other results, Guardian learned that income is not the sole driver of confidence and success. Read the report to find out what actually contributes to financial and emotional confidence.