QOTW: Financial Wellness

Financial wellness has been a “hot topic” for a while now, despite the fact that there is (still) not a consensus as to its definition (go ahead, google “financial wellness definition” and watch your head spin), and in the last 18 months as we have dealt with the pandemic and its impact on the labor market, there is a general sense that there is, or perhaps should be, a renewed interest in providing financial wellness programs. So, we asked members in this week’s QOTW if there has been an increased interest in financial wellness programs, either at a company or employee level, if they feel that it is within the role of the employer to provide these programs, as well as any general thoughts on financial wellness initiatives.  The responses are pretty evenly split, and if we had captured demographic information these results would likely vary a bit by industry and company size, but 46 percent indicated they have not seen an increase in financial wellness interest in the last 18 months, 41.3 percent indicated an increase, and 11.1 are unsure of a change in interest related to the pandemic.

A few respondents indicated that they do not feel financial wellness programs are part of the employer’s role, but the majority indicated that it is. There is a feeling that financial stress negatively impacts work performance and that, in addition to perhaps more altruistic reasons for offering financial wellness programs, offering them ultimately creates a less stressed and therefore more engaged workforce. Additionally, there is a bit of a sense by some that as the labor market tightens and there is more competition for talent, employers will be looking at how they can enhance benefit packages to attract and retain talent, and a robust, holistic approach to providing financial wellness tools may be part of the strategy.

Respondent comments include:

• Absolutely! If our employees are struggling and need guidance and direction, we need to give it to them so they can then focus on being productive and successful at work.
• Although I don't believe it is the role of the employer to be paternalistic and tend to all things for employees, it is undeniable that financial stress impairs work performance. We've found that financial wellness initiatives are either no-cost or low cost to the company, and the support to employees to reduce their stress levels, as well as supporting their ability to retire at the right time for them, supports our business objectives, as well.
• Employees think it should be... when employees have financial issues they often come to the employer asking for assistance (advances on vacation, loans, etc.)
• Employer-provided financial wellness and education is extremely important and has a significant value to employers because financial stress is detrimental to employee productivity and turnover.
• Financial wellness could be a wonderful benefit whether it's using education, providing resources, providing matching or profit-sharing contributions in their 401(k) plans.  However, if the employee doesn't take initiative or advantage of what the employer has, the program will not be successful.
• focused on providing Fidelity-sponsored webinars for our employees specifically and giving them other tools and options to attend Fidelity's other programming.
• For employers that offer a Retirement Plan, tools and resources should be offered to point participants in a direction for guidance.
• Hasn't increased in conversation.  It is on the radar as employees will leave for an extra 50 cents and hour yet pay an extra dollar an hour more in benefits when they do.  We have been promoting a "Total Rewards" function and would like to see it expand into the wellness arena.
• I don't think it is the employer's responsibility but it is an added benefit that can be seen as meaningful to employees.
• I have seen no change one way or the other.  We do auto-enroll to try to encourage financial wellness.
• I manage a multi-employer plan so am not in the role of "employer".
• I think any financial wellness initiatives are a benefit. Specifically holistic financial wellness needs to be a consideration and determining the needs and how receptive your employees are when it comes to various types of financial wellness.
• I think the employer's role in financial wellness is to educate and offer helpful information to employees to help them have more confidence in their finances, but offering additional benefits should a consideration for attracting and retaining talent.
• It is a plus, but can come with cost and liability concerns that need to be assessed.
• It is at our company. We've been doing it since 2015 and we keep adding to it every year.
• Not necessarily an increased interest in the initiative but more of a shift in how we engage the participants.  Our new strategy for 2020 and beyond was to visit each location to provide face to face wellness events.  Obviously, we had to change our course and provided it electronically, with poor results.
• Offering the opportunity for employees to learn more is important, but our employees are private about their money and wouldn't want company leaders involved.
• Providing additional information and/or initiatives to employees regarding financial wellness, is a great retainage tool to use during this time of labor shortage. It also increases the employees awareness of retirement and to plan for the future. Holistic financial wellness is not part of our employer's role, but I see the trend changing in the near future to include this.
• providing retirement planning for participants to map out their retirement future. Our Company pays for this service. Many of our Latino participants would rather have help with their family members than reach out to a strange financial consultant.
• Should be part of the employer's role but can be difficult to implement in smaller organizations with limited resources.
• The 401k is not integrated with holistic wellness at this time. We do provide the importance of creating a budget to include $ toward retirement and emergency fund. We provide the importance of setting aside money on their own behalf throughout their working life. We emphasize the importance of deferring dollars regardless if their is a wait for profit sharing employer contributions to stay on target of financial goals.
• The employer certainly has a role to play but it is the employee's responsibility to look after their own wellness, financial or otherwise.
• Unsure whether there is increased interest but there is an increased utilization, especially counseling/ coaching.   Yes, holistic financial wellness part of the employer's role in providing benefits to employees.
• We already provide a robust financial wellness program
• we believe it is partly an employer's role to train financial wellness, so we discuss it along with our 401K offering and our flexible paycheck timing options.
• We currently promote financial wellness training to our employees, but we don't really see employees taking advantage of the courses and information available.
• We feel financial wellness goes hand and hand with mental wellness.  We have provided several webinars, flyers, etc., for our employees.  Yes, this is an important employee benefit.
• We had initially stalled on our wellness programs - sort of waiting for return to normal work environment.  During the past 4 - 6 months, we have become much more engaged with going beyond the core COVID safety response items.
• We have opened a pay day loan program and thinking about FW offerings for the future.  Costing could be an issue.
• We provide as a benefit to participants a financial advisory service that can include a holistic financial wellness plan should they choose to engage the advisors in that way. We view this as an important financial benefit for the participants and encourage use of the advisors. We also monitor their effectiveness to be sure we are providing a meaningful service/benefit for our employees.
• We've added this as a subject matter to our wellness program by providing webinars with various subject matter, budgeting information and a push on 401k day.
• Yes and more interest and need during Pandemic to ensure employees can plan for the unexpected and solve for other cash and financial needs.  Also increased awareness of need and willingness to deliver more foundational type of education.
• Yes it most definitely it, and employees have come to expect it. We are making it a priority.
• Yes, definitely a holistic approach
• Yes, it's part of the whole benefit feature and provides accessible and a less intimidating platform to connect to than calling an advisor not connected to the employer or the plan.
• Yes, we are finding that employees are expressing for more information on their retirement account to prepare for retirement in the in the future.  We are working with financial planners to give more education over time.