Financial Wellness for your Employees

Charles B. Flowers, CFA

Employers want highly engaged employees who are focused on their work during business hours. Hopefully, the employees also want to be “all in” while they are at work. While owners expect employees to separate their personal lives from their professional lives, some aspects of personal lives can make it exceedingly difficult to let go and focus on the tasks at hand. When personal financial stress bears down on employees, they may feel entrenched and unable to focus on customers and work. How can you help?

Any stress (personal, family, work, friends) makes focus at work difficult. These worries can be magnified with financial stress. Your employees may feel too ashamed to ask questions, though they are not able to let go of the thoughts that come with not knowing how to move forward and make healthy financial decisions. They may not be on track to meet their goals, or they many not even know how to create financial plans and goals.

Financial wellness is a critical aspect of an employee’s overall health and well-being. As an employer, you play a vital role in supporting your employees’ financial health and stability. A financially stressed employee is less productive, less engaged, and more likely to miss work. In today’s fast-paced business world, companies must focus on creating a financial wellness program that provides employees with the tools, resources, and support they need to achieve their financial goals.

Here are several ideas for financial wellness programs that employers can make available to their employees:

• Retirement savings plan: Providing a retirement savings plan such as a 401(k) or a 403(b) is an excellent way to support employees in preparing for their future financial needs. Employers can match employee contributions, which provides a powerful incentive for employees to save and invest in their retirement.
• Health savings accounts: Providing health savings accounts (HSAs) can help employees save for their healthcare expenses and prepare for the future. HSAs are tax-advantaged accounts that allow employees to save money for healthcare expenses and to pay for insurance deductibles and copays.
• Financial education: Offering financial education programs that cover topics such as budgeting, debt management, and investment planning can help employees build a strong financial foundation. These programs can be delivered in-person or online, and they can range from short workshops to comprehensive courses.
• Payroll deduction savings: Encouraging employees to save money through payroll deduction is a simple and effective way to help them build their savings and reach their financial goals. Employers can offer savings accounts with competitive interest rates, and they can also provide incentives for employees who consistently save money through payroll deduction.
• Time off for financial planning: Allowing employees time off for financial planning can help them focus on their financial well-being and make informed decisions about their money. Employers can offer employees paid time off, or they can provide flexible scheduling options that allow employees to attend financial planning appointments during work hours.
• Employee assistance programs: Employee assistance programs (EAPs) can provide employees with access to financial counseling and support services, such as debt management and credit counseling. EAPs can help employees understand and manage their financial situation, and they can provide valuable resources and support in times of financial stress.
• Discount programs: Providing employees with access to discounts and special offers on financial products and services can help them save money and achieve their financial goals. Employers can negotiate discounts with local banks, credit unions, and investment firms, and they can also provide employees with access to online financial planning tools and resources.

By offering these programs and resources, employers can help their employees achieve financial wellness and stability. By doing so, they can also benefit from increased employee productivity, lower absenteeism, and reduced turnover. It is important to remember that financial wellness is a long-term journey, and employers should be committed to providing ongoing support and resources to help employees reach their financial goals.

In conclusion, promoting financial wellness among employees can have a positive impact on the bottom line of a small business. As an employer, you have the power to support your employees in achieving their financial goals and to create a positive workplace culture that fosters financial well-being. By investing in your employees’ financial health, you are investing in the future of your company.

About Charles Flowers

Charles B. Flowers, CFA graduated from the University of the South (Sewanee) in 2001 with a BA in Economics. After graduation, Charles returned to Columbia, SC and began work with Abacus Planning Group. Charles earned his Chartered Financial Analyst (CFA) designation in 2017. As Abacus’ President and Chief Investment Officer, Charles provides leadership to the firm and investment team while serving his clients. Charles is one of six Abacus shareholders.

About Abacus

Abacus is a financial advisory and investment counsel firm focused on serving families with shared assets from businesses to commercial real estate to oil and gas holdings. Managing over $1.7 billion on behalf of its 250-plus families, Abacus consists of a team of multi-disciplinary experts who work collaboratively to serve its clients.