In 2017, it has become commonplace for companies of all sizes to offer physical wellness packages. These offerings might encompass anything from health screenings to flu shots, programs that help employees quit smoking, on-site gyms, lunch-time fitness walks, standing desks, and more. However, across the board, companies are also beginning to see increased demand for another aspect of employee’s holistic wellness: financial wellness.

In tandem with this emerging trend, health insurance brokers must roll out robust, holistic solutions for employers.

What is financial wellness?

At the most basic level, financial wellness programs provide employees with personal finance training and/or counseling. As illustrated in a recent survey from PwC, employees are actively seeking financial assistance to get out of debt, achieve enough financial security to withstand any financial emergencies, start laying the bricks for their retirement, and even simply meet their regular monthly expenses without acquiring additional debt.

Brokers should keep these general areas of concern in mind when curating financial wellness plans for employers.

How important is financial wellness to consumers?

The previously mentioned PwC survey, based on the views of 1,600 working adults across the U.S., also revealed some troubling details about just how financially unwell consumers across the country are.

42 percent of all survey participants reported difficulty meeting monthly household expenses on time;
59 percent indicated that they consistently carried a credit card balance — and 40 percent of these respondents have trouble making their minimum monthly credit card payment on a timely basis;
Nearly one-third have tapped their retirement plans to take care of non-retirement financial needs — and 44 percent feel that they’re likely to do this at some point;
53 percent reported their financial situation is stressing them out (with nearly half saying their financial stress level had increased over the past year)

How important is financial wellness to employers?

Stressful financial issues follow employees out of the home into the workplace and eventually impact employee productivity. Nearly one-third of employees surveyed by PwC cited personal financial issues as a work distraction. Nearly half (46 percent) of those distracted employees admitted to spending three or more hours a week thinking about or dealing with their finances while they were at work. Financially strapped workers might have to take time off of work to address their financial concerns and/or even experience health issues due to their elevated levels of stress.

In late 2016, Fidelity Investments and The National Business Group on Health jointly conducted a survey on Employer-Sponsored Health and Well-Being, polling 141 large and mid-sized organizations. The results showed that 84 percent of companies surveyed provided financial security programs for their employees, up from 76 percent offering such programs the prior year.

Businesses are increasingly expanding their definition of wellness to encompass all aspects employee’s lives. Brokers must follow suit to stay relevant with their clients.

What goes into a financial wellness program?

A financial wellness program can range anywhere from fairly basic to extensive. The list below of popular offerings is by no means exhaustive, and continues to evolve as the space does:

Basic financial literacy
Budgeting assistance
Debt management/debt reduction
Creating an emergency fund
Investment advice
Retirement planning
Home buying/mortgage
Managing student loan debt
Planning for children’s education

These programs can take a myriad of forms. Some companies provide online tools/workbooks, while others offer classes (either in a physical classroom setting or via eLearning) or even provide private, one-on-one meetings with financial counselors or financial planners.

The right plan for one employer might not be the right plan for another employer. Offerings should be determined by analyzing both the employer’s budget and workforce demographics. For instance, millennials will likely be more interested in managing student loan debt and buying their first home, while Gen Xers will likely be focused on financing college educations for their kids, and baby boomers will inevitably be more concerned about managing their assets throughout their retirement.

Regardless of the perfect mix of offerings, it is increasingly apparent that financial concerns are top of mind amongst employees across the nation. This universally heightened financial stress is now taking a toll on employers. Brokers who expand their offerings to address this growing need will provide a true value-add to employers and stand apart from their competition.

Instant Insights /

Why brokers should make space for financial wellness

More From HR Executive

Related Stories

Recommended For You