Interested in retaining your great employees and increasing and improving their productivity? Read on…
Within the past year, we’ve written a few articles that relate to Financial Wellness. A lot of what we’ve written has focused on the individual and how financial wellness can impact one’s health and wealth. Today we’re focusing in on the employer for a moment. We think what follows is important data that can assist you in your decision-making about a Financial Wellness Program.
Ernst & Young has found that among employers who do not currently offer a financial wellness program, (59%) say the biggest factor they will consider is price, followed by the ease of the program (53%) and breadth of the program (44%). However, employers that do offer a program focus less on cost (35%) and more on the breadth of the program (47%) and the quality of employee communications (45%).
The survey by Ernst & Young showed that those who offer financial wellness plans saw a direct correlation to employee retention (56%), well-being (50%), and productivity (45%). Most respondents to the study considered these the main benefits of the financial wellness program regardless of whether or not they currently had a financial wellness strategy.
Now, juxtapose the employers who currently have a financial wellness program with those who do not. Here’s what respondents to the study who do not have a program in place had to say about it, a bit more of a limited vision…(50%) consider it a way to encourage employees to boost retirement savings, (38%) see it as a means to help employees boost savings overall, and only (31%) think it could lead to greater employee retention.
So, if you haven’t already given strong consideration to a financial wellness program with your company, Aon provides some valuable insight on your competition…roughly half of companies (49%) are still in the process of creating their financial wellbeing strategy, but they are still offering tools, services, and education on various financial matters to their workforces.
As of the beginning of 2017, (58%) of employers have a tool or education available to workers covering at least one aspect of financial wellbeing. By the end of this year, the percentage is expected to climb to (84%).
A huge number of employers, (86%), by year-end, are very or moderately likely to communicate the importance of integrating health and wealth as a key message to employees.
So, it’s time to get started if you haven’t already or to keep adding to your financial wellness strategy. Here are some of the most important topics that we think should be a part of your offering.
- Basics of financial markets/simple investing.
- Health care education and planning.
- Financial planning.
- Prioritizing savings.
- Debt management.
- Assistance with savings during life stages.
From our own personal experience as well as our experience advising others, we know the importance of integrating your health and wealth. The two are so closely linked. It’s time as employers, we realize that providing a Financial Wellness Program can be mutually beneficial to both employer and employee.
Important Note: The views expressed in this post are as of the date of the posting and are subject to change based on market and other conditions. This post contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
Please note that nothing in this post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and should not be taken to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Lenity Financial, Inc. unless a client service agreement is in place.