How HR Departments Can Help Employees Reach their Financial Goals
As the calendar flips to 2024, it's a renewed opportunity for employees to reassess and rejuvenate their financial aspirations. Financial wellbeing is more than a personal agenda; it's a critical component of overall job satisfaction and productivity.
This year, as employees look toward setting fresh financial goals, the role of companies, particularly HR departments, in facilitating this journey is more significant than ever. Outside of affecting salaries, HR departments can foster an environment where employees can thrive financially through goal-setting, understanding benefits, and financial wellbeing programming.
The importance of playing an active role in employee financial wellness
A staggering 60% of full-time employees report stress over their finances, according to a PwC financial wellness survey. Aside from the personal turmoil this stress can cause, it also seeps into work performance and overall morale.
Research highlighted by the Corporate Wellness Magazine illuminates this further, with 58% of employees who feel financial stress acknowledging its negative effect on their job performance.
However, with the new year comes opportunity and motivation for change. A study by Fidelity Investments indicates 66% of individuals are considering financial resolutions, and the message is clear: people want to improve their finances, and it's in the best interest of companies to help employees improve their financial wellbeing.
Here are a few ways you can support your employees on their financial wellness journey.
Encourage goal-setting
The power of setting specific, measurable goals is undeniable – just consider the popularity of the commonly-used SMART goal method. Simply put, when people set specific goals, they are more likely to achieve them. Encouraging employees to specifically articulate their financial wellness goals can be transformative, and improve the likelihood of reaching their overall goal of financial health.
While personal finances are private, understanding the general financial aspirations of your workforce can tailor your support effectively. A simple, anonymous survey can yield insights into the collective financial pulse of your employees, enabling more targeted and impactful assistance.
Clarify your benefits
Knowledge is power, especially when it comes to employee benefits. Ensuring that your team is fully aware of and understands how to utilize their benefits is crucial. Key dates, accessible resources, and straightforward onboarding processes remove barriers to benefit utilization. Furthermore, being a readily available resource for benefit-related inquiries and conducting workshops can significantly demystify and maximize the value of these offerings.
Offer financial wellness programming
Providing comprehensive resources on budgeting, saving, and investing empowers employees to take charge of their financial destiny. This is a win-win situation for both employer and employee: according to a Bank of America study, a significant majority (84%) of employers report that offering financial wellness tools helps increase employee retention, indicating a strong correlation between providing financial wellness benefits and improved employee loyalty and reduced turnover.
Ovation (previously known as Paperwork) can help you provide your employees with a tailored financial wellness program - incorporating both web and mobile engagement, and personalized financial coaching. We specialize in helping employees at each stage of their financial journey - from budgeting to saving to retirement and estate planning.
To learn more about how Ovation’s turnkey financial wellness platform can reduce employee stress and boost retention, schedule a demo today.