What is a financial wellness program?

Financial wellness programs educate employees about a variety of financial topics. Some programs may focus on reducing expenses while others might teach employees how to maximize their retirement savings. Comprehensive programs may include coaching sessions or meetings with financial advisors to help employees learn more about investing and building wealth.

A financial wellness program may also cover the following topics:

• Building credit: Good credit makes it easier to qualify for auto loans, mortgages and other types of credit. Some financial wellness programs offer tips on reducing debt, managing credit cards and preparing to apply for a mortgage.
• Student loan management: If you want to improve financial wellness for employees, consider addressing student loans in your program. For example, you might have a financial professional come to your workplace and advise participants on choosing a repayment plan or determining whether they should consolidate their loans.
• Budgeting: Budgets help people determine how to spend their money based on their income and priorities.
• Saving money: Some financial wellness programs teach participants how to use savings accounts, certificates of deposit and other financial products to build their emergency funds.
• Goal setting: A person’s financial goals may change as they age. For example, a couple in their late 20s might need information on saving for a down payment on a home, while a person in their 60s might want to discuss selling some of their investments to prepare for retirement. A comprehensive financial wellness program helps employees set goals based on where they are and where they want to go.

Benefits of offering financial wellness programs

Participating in a financial wellness program gives employees the opportunity to get their finances in order. Depending on how you structure your program, participants may have the opportunity to build their savings, pay off high-interest debt, create monthly budgets or complete other activities designed to improve their financial circumstances. Employees can save for unforeseen circumstances, while likely reducing their stress at work.

Better retention

Offering financial wellness programs for employees could have a positive impact on productivity, employee satisfaction and happiness, and work quality.

Financial wellness can also potentially influence an individual’s employment trajectory. If an employee is financially secure, they may be more likely to make decisions based on their goals and interests. For example, they may be more open to upskilling or reskilling.

Attraction of top talent

Financial wellness programs are an attractive benefit for job seekers, potentially making your company more competitive in the job market.

Reduced risk of burnout

It’s normal to have some work stress, but employees struggling with their finances may be so stressed out that they experience physical symptoms. Headaches, difficulty sleeping, muscle tension, upset stomach and unusual aches and pains are just a few of the physical problems caused by heightened stress levels. The physical and psychological effects may cause employees to become dissatisfied at work.

Financial wellness programs may help employees avoid burnout, as they eliminate money-related stress.

Tips for implementing a financial wellness program in the workplace

If you’re ready to implement a financial wellness program, consider these tips to make it a success:

• Survey employees: Don’t assume that you know what type of financial assistance employees need. If you offer retirement seminars when employees really want to know how to pay off debt or budget more effectively, the program may not be as effective.
• Make the program as comprehensive as possible: Remember, no two employees have the same financial situation. Your program’s content should be as relevant as possible to each employee , so do your best to cover multiple topics.
• Include financial professionals: HR staff members with professional experience in the financial industry are well-qualified to administer financial wellness programs. If you’re looking to outsource speakers, contact financial advisors, bankers, debt counselors and other financial professionals before you launch your program. Getting input from professionals can help you make your new program more effective.
• Align the program with your company’s goals: Before you start a financial wellness program, think about what you want to achieve. The program should align with your company’s goals.
• Make employees aware of the program: If you mention the program in your monthly newsletter, there’s a good chance at least a few employees will miss the announcement. Increase participation rates by promoting the program consistently for several months before it launches.