Financial wellness can be an overlooked part of overall wellness and is a benefit area employers might not think about adding to their portfolio. However, one area expert says, the benefits can be far reaching. The National Fund for Workforce Solutions defines financial wellness as having control over day-to-day and month-to-month finances, having the ability […]
Financial wellness can be an overlooked part of overall wellness and is a benefit area employers might not think about adding to their portfolio. However, one area expert says, the benefits can be far reaching.
The National Fund for Workforce Solutions defines financial wellness as having control over day-to-day and month-to-month finances, having the ability to absorb a financial shock, being on track to meet financial goals, and having the financial freedom to make choices that allow one to enjoy life.
Somewhere around 90 percent of Americans have indicated in numerous surveys that finances are their number one concern, Chris Manderfield, head of retail banking strategy for KeyBank, says. Of that 90 percent, three-quarters of those Americans don’t know where to go for help with their finances.
“As a result, employers are losing, on average, eight hours a week for every employee that works for them,” Manderfield says.
Fortunately, he adds, there are programs out there that employers can incorporate into their benefit packages to help employees with their financial wellness.
“The value proposition resonates with them,” Manderfield notes.
There isn’t one clear cut reason why finances concern so many people or why they struggle to find help. Rather, it’s a combination of factors, he says.
“There’s a reason 90 percent of consumers are worried,” he says. “That doesn’t happen overnight. There’s a compounding effect.”
It starts education, or the lack thereof, especially at the high school and college levels when young people are having their first financial encounters — first jobs, college loans, and more.
“I think there is a gap in terms of providing educational content,” especially as people progress through stages of life and their financial needs change, Manderfield says.
That lack of education can lead to poor decisions that tax finances. But there is a further compounding factor, he adds. That is shame or embarrassment.
“I think there’s a hesitancy for raising your hand to say I have an issue, and I don’t know how to solve it,” Manderfield says.
Key Bank’s solution is its Key at Work program, a free program employers can add to their benefit package. The program is a mix of digital and in-person assistance employers can utilize how they want, when they want.
A number of other programs are available, and employers can research to determine which one best meets the needs of their employees.
“It’s removing those barriers to getting help,” he says of such programs.
Providing that type of benefit to employees also benefits the employer, he adds. It can help an employer attract and retain employees. It can also boost productivity as employees spend less time worrying about their finances and more time focused on their work.
The National Fund for Workforce Solutions recommends these six steps for starting an employee financial wellness program — understanding your employees’ financial lives, assessing their financial wellness needs, determining the right kind of financial wellness solution for your company, finding and committing to the program, implementing and evaluating the program as a solution, and making any necessary changes based on evaluation and feedback.
