State Street Global Advisors (SSGA) and Benz Communications today released an easy-to-implement framework that companies of all sizes can use to develop successful workplace financial wellness programs.
“The urgency of addressing employee financial wellbeing inspired us to collaborate with employers and create a framework that helps them to take action”
According to research from SSGA, 61 percent of employees experience moderate to high levels of financial stress1. The majority of employers feel a sense of responsibility for helping employees gain financial security. However, when faced with workers’ diverse income levels and financial know-how, in addition to cultural issues around discussing financial matters, employers may not see a clear path to driving employees’ financial wellness.
To address these needs, SSGA and Benz Communications convened a group of companies including Los Alamos National Laboratory and Harvard behavioral economist Brigitte Madrian, to build a framework which employers can use to kick-start a financial wellness program. Late last year, the companies met in New York for a financial wellness “hackathon” that yielded best practices around helping workers achieve greater financial security.
“The urgency of addressing employee financial wellbeing inspired us to collaborate with employers and create a framework that helps them to take action,” said Megan Yost, head of employee engagement, global defined contribution at SSGA. “SSGA believes that elevating these issues and engaging employees in conversations about financial wellness will help alleviate their daily stressors, increase their productivity and help guide them towards more secure retirements.”
Jennifer Benz, founder and CEO of Benz Communications, added, “In some ways, financial wellness has started to eclipse health promotion as the foremost wellness program need. This framework can be the first step for thousands of US employees toward getting out of debt, saving more, understanding investing and forming a solid plan for their financial future. Helping people achieve financial security was a mission shared by everyone at the hackathon, and I know it will resonate with like-minded companies who want the same for their employees.”
Among the working group’s recommendations:
Understand the financial landscape.
For employers, it’s important to understand employees’ financial stressors and priorities, both at work and at home, when developing a financial wellness strategy. Understanding whether debt, budgeting or simple financial literacy are hampering financial stability are key to building a successful plan.
Define financial wellness for your organization.
To do this, companies must first determine how they’d like to influence employees’ wellbeing, while understanding that financial status isn’t static. As a result, financial wellness programs should aim to meet employees’ varying needs. This effort can help benefits teams align overall rewards and benefits programs with employee wellbeing.
Lean on best practices.
Corporate budgets and resources vary, but the group recommends the following as critical best practices: implementing benefits that engage and matter to employees (i.e., 401(k) matching contributions), using smart benefits design (including automated plan features), segmenting financial solutions and communication to target employees at diverse income and financial knowledge levels and communicating year round to ensure messages stick.
Explore established and emerging solutions.
There are many vendors, solutions and nonprofit institutions available to support employers with financial wellness programs. The group encourages companies to seek partners in areas like financial counseling/planning, concierge services and employee assistance programs.
Overcome challenges.
The group offers ideas around how to engage employees and sidestep inertia, bridge complex and disconnected programs and work effectively with limited resources.
Build a business case.
A wide body of research concludes that the financial impact of workplace health and wellness programs have saved up to $3.00 for every dollar spent. While financial wellness differs from physical wellness, the group recommends framing the case for financial wellness programs in similar terms, including decreased absenteeism and increased productivity.
The full working group report and supporting infographic on U.S. financial wellness, is free for download at benzcommunications.com/financialwellness.
About Guest Author State Street Global Advisors
For nearly four decades, State Street Global Advisors has been committed to helping our clients, and those who rely on them, achieve financial security. We partner with many of the world’s largest, most sophisticated investors and financial intermediaries to help them reach their goals through a rigorous, research-driven investment process spanning both indexing and active disciplines. With trillions* in assets, our scale and global reach offer clients unrivaled access to markets, geographies and asset classes, and allow us to deliver thoughtful insights and innovative solutions. State Street Global Advisors is the investment management arm of State Street Corporation.
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The post Six Steps to Bring Financial Wellness to the Workplace appeared first on Tavorro.