If your workers are like other Americans, they’re worried about their financial health. As Andrew S. Zito notes on the Employee Benefit News website, a recent Bankrate survey found that many Americans can’t come up with $500 for an emergency. Moreover, a survey by PriceWaterhouseCoopers suggests employers could be losing money due to productivity declines stemming from money problems weighing on employees’ minds.
Zito outlines several ideas to help your employees improve their financial wellness:
- Offer classes and workshops. Working with certified financial planners (CFPs) and registered investment advisors (RIAs), you can help employees learn about basic concepts like budgeting and understand their retirement plans. You also might want to provide access to personal financial planning resources to guide them in reaching their long-term financial goals.
- Provide free credit monitoring. Some employers include credit monitoring among their employee benefits. Giving employees easy access to their credit scores and reports empowers them to improve their credit.
- Add student loan repayment as a benefit. Student loan debt is a major source of financial stress, especially for Millennials and some Gen X employees. Allow them to put part of each check toward loan repayment.
- Offer a 529 plan. With college costs skyrocketing, employees with children may be concerned about how they will pay for their education. These plans can provide some peace of mind.
- Automate enrollment in retirement plans. Automatic enrollment encourages employees to save for retirement without having to think about it. According to Zito, 67% of 401(k) plans offer automatic enrollment, typically at a rate of 3% to 4%. In addition, research indicates that employees are more likely to enroll and stay enrolled the sooner they can, so thinking about shortening your eligibility period and permitting enrollment more frequently.