In the last couple of years employers have become more aware of the importance of their employees’ financial wellness. We know that employees now expect their employers to provide financial wellness education. We also know that employers are increasingly doing so.
In the event you’re looking for additional data to support a financial wellness initiative within your organization, a new publication from the Financial Wellness Task Force and the Defined Contribution Institutional Investment Association might help. Check out: “A Financial Wellness Primer: Why Financial Wellness?”
Also, here’s an excerpt from this month’s QPA newsletter, which addresses the subject of financial wellness and the paper linked above:
In short, financially unwell employees are stressed, less focused, less efficient, less productive, less present, physically unhealthy, less happy, and less profitable, yet they present the risk of hanging around too long. On the other hand, when employees feel comfortable about their financial situation, those adjectives flip to the positive. With less stress comes more focus, more efficiency, greater productivity, more consistent attendance, lower medical costs, greater fulfillment, and a greater likelihood of retiring on time. Does that sound too simple to be true? If you’ve focused on financial wellness at your company, your experience may already show you that (a) it’s not simple, but (b) the potential for those positive results is real.
Finally, the Task Force’s paper explores the ways in which your retirement plan – and a focus on retirement readiness – can provide the foundation for financial wellness. It’s encouraging that employers are absorbing that message and enhancing their retirement plan offerings in response.