A Different Approach to Financial Wellness – Engage Employees During Moments That Matter

Since the beginning of the pandemic, there has been no shortage of research and media attention on the increasing levels of financial stress American employees are experiencing, and the need for employers to provide more help. But with so many changes in the workplace, the economy and society over the past two years, it can be overwhelming for employers to know how to start helping employees navigate their stress.

By now, we all recognize how difficult it is to separate one’s work and personal life, especially as money, life events and work intersect in so many ways: Should I pay off my loans or save for retirement? How will my family get by if I’m gone? Can I afford to adopt a child? Do I need to buy long-term medical care? Should I take on this new job? How will I care for my aging parents? Each one of these questions has a dollar sign attached to it, and they’re just a few of the issues employees are wrestling with both at home and at work.

Employers are coming to the table not just because it’s the right thing to do, but because it has been proven that stress about money can negatively impact worker health and productivity levels, talent development efforts and a company’s bottom line. Employers are uniquely positioned to provide employees with financial wellness support that many individuals don’t have the time or expertise to source on their own. Larger employers have the capability to identify and engage best-in-class providers, while passing along institutional benefits and pricing to their employees. Benefits decision-makers have an opportunity to step up and make a difference not only by adjusting their programs to meet the demands and expectations for financial wellness – but also by recognizing that critical life events can provide a pathway to the solution.

Research from Edelman Financial Engines reinforces this point: 86% of employees confirmed they’d want some type of workplace benefit to help manage their finances; 73% said they expect their employers to provide access to a financial professional when they experience a significant life event.

As personal and professional lives become more interconnected, it’s imperative to link financial wellness services to these significant moments in life to better meet employees where and when they need the most help. These moments can take place in our professional lives, such as joining a new company or receiving a promotion. Or they can be personal events, like getting married or divorced, buying a house or starting a family.

Our findings also highlight that these moments happen frequently – 90% of employees said they had at least one major personal or professional event during the last five years. And while 79% hadn’t spoken to a financial professional when the event occurred, 97% of the few who did confirmed that the interaction was valuable.

4 actions employers can take toward financial wellness

So how can these insights inform the way we approach financial wellness? As today’s workplace continues to evolve, there are four actions employers can take to build a strong foundation for a successful and effective financial wellness program, leveraging the power of key life moments to meet employees where, when and how they want to engage:

1. Help employees save for their retirement. Despite being a distant event for young people, thinking about retirement should begin as soon as an employee can enroll in their employer-sponsored retirement plan. Many employees can benefit from the support of professional account management and investment advisory services, whether digital or through a personal advisor. But the help doesn’t end there.
2. Use targeted communication campaigns and educational resources to proactively reach employees during key personal and professional life events. These moments, which tend to have a financial impact, can include events such as starting a job at a new company, receiving a promotion or equity award, getting married or divorced, buying a house, losing a job due to a corporate event, or evaluating income needs when preparing for retirement.
3. Support everyday financial questions and needs, including the basic areas of saving, budgeting and debt management. This help would also flex to provide more advanced wealth planning assistance to those looking for guidance on tax strategies, generational planning, wealth protection and preservation, health care, elder care and custom benefits.
4. Deliver individualized experiences designed to address the distinct needs of diverse employee groups. Employees want content and programs that reflect their diverse perspectives and experience, delivered by companies and financial advisors who reflect and relate to them. We are seeing greater demand in this area as Employee Resource Groups and Diversity, Equity and Inclusion programs continue to be a growing focus for organizations.

At the end of the day, for a financial wellness offering to be effective, it must be comprehensive, personalized and flexible – capable of helping the youngest employee starting out who may only want self-directed education or digital tools, to the more tenured worker who seeks complex counseling or financial planning. By developing and connecting a breadth of services around the moments that matter most in life, employers can help employees transform financial stress into financial confidence.

Kelly O’Donnell is Executive Vice President, Head of Workplace at Edelman Financial Engines.