Help End Financial Stress & The Paycheck Blues!
Is financial stress causing you sleepless nights? From time to time, who hasn’t experienced financial stress? However, if you consider the fact that 35% of millennials — the largest group in our workforce today — are concerned about meeting their monthly expenses then, as an HR professional, you have a lot to be concerned about.
Why, you ask? Because financial stress impacts productivity — a direct expense to the company, and also effects indirect costs like healthcare and paid sick days that can gradually erode the bottom-line.
According to a recent study about 1/3 of our workforce, including millennials, find their finances are a distraction to them at work. This in turn causes nearly half to spend at least 3 hours a week, while working, stressing about them.
What can you as an employer do about this? Plenty, and it starts the day you hire someone. While there are many actions you can take — some depend upon your company’s culture and the location of your employees, or the benefits you offer and the type of employees you employ — I offer my top 5 recommendations for establishing employee financial health:
- Be clear about what your benefits are and when employees can enroll in each. If no action has been taken, follow up.
- Ensure that a beneficiary has been appropriately designated for each plan and how the beneficiary process works as all too often a designee becomes outdated or is missing.
- During Open Enrollment, encourage all employees to revisit all their benefit choices as well as whom they have named as participants and beneficiaries.
- If you offer a 401(k), 403(b) or a similar account based plan encourage active investment management or offer a managed account with periodic re-balancing. Offer auto enrollment and auto deferral escalation. Provide a retirement income calculator that tracks their success on meeting their goal. On an annual basis, send out a hard copy of the account information with beneficiary information even if the employee elected periodic electronic delivery.
- Offer an Employee Assistance Program that can help with budgeting, debt management and other financial and legal concerns.
If you need help building a financial literacy toolkit or need support with your open enrollment communications to bring it to that next level contact me, or any of our PeoplePro specialists. Let us help you coach your workforce to be more focused on their job, while at work, and less concerned about their family’s finances. Help end financial stress and the paycheck blues!
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