Role Of Employer In Ensuring Financial Wellness Of Employees
Role Of Employer In Ensuring Financial Wellness Of Employees.
Let’s face it, and we spend a considerable amount of time at our workplace. And that is somewhere you want to feel comfortable and relaxed. Suppose you have a well-defined support/ financial wellness plan from your employer. It has a two-way positive impact on the employer and the employing organization. From a larger perspective, it has a two-way positive impact on society and the economy.
How does a financial wellness program help society?
A wonderfully managed program can help reduce a considerable amount of stress from the minds of the employees. This in-turns increases the productivity level and improves efficiency at the team level. With the team progressing mentally, the society and economy standards of life would also improve.
How does it reduce stress?
Having support from your employer financially helps an individual to be more confident in life. It helps by reducing the time spent thinking and worrying about things like a crisis, epidemics, etc. And focus more on key aspects of life. It directly has a positive impact on productivity.
Therefore, these plans help companies reduce absenteeism, attrition, and increased efforts, which are followed by seamless collaboration.
How does a Company conduct a financial wellness program?
Companies’ channel to provide financial wellness is critical and should be planned in a manner that it reaches to everyone; within the organization. Few examples are:
– Weekly/Monthly/Quarterly Newsletter
– Counseling sessions
– Financial awareness lectures
What should be a part of these wellness programs?
When we say holistic, the program must cover every aspect of one’s life. The wellness programs should at least cover the following aspects:
– Retirement planning (not be used as an emergency fund)
– Emergency fund (for uncertainties of life)
– Debt- and credit-related programs
– Tax saving schemes
– Investment strategies
– Financial counseling
Also, not to forget, the employer’s approach matters more than just creating a plan for its sake. Practicing empathy is something that every employer is unable to achieve nowadays. And therefore these plans may fail without getting much support from the top management.
To assess a financial wellness program, one should be aware of the following factors:
– See the operational history of the plan – How well it has been managed? How easily can it be incorporated within your daily routine?
– Have these programs helped any past employees in their retirement planning – you could read a few testimonies and try reaching the person(s); who wrote them to get a better understanding.
– See what are the benefit provided by these plans and how can it help your planning.
– Read employee behavior – These are some of the key ways of assessing a wellness plan. Here you can see how well the employees behave in terms of their money habits, which would include their budget/planning. You can also focus on whether or not employees can reduce debt from their life.
Therefore, financial wellness programs are a two-way program, the quality of which depends on the careful planning of the employing organization. And the fact that the employees execute meticulously on whatever they think is best for them. These programs should be an integral part of every organization and should be analyzed carefully beforehand for employees’ benefit.