Financial Wellness.©syahrir – stock.adobe.com
Statistics can be confusing. Put another way, statistics can be contradictory. 80% of employees want financial wellness training, according to Bank of America. Meanwhile, Board.com cites another report that 64% of employees are concerned with the privacy of their personal data at their workplace. According to Forbes, 59% of employees feel stressed because of workplace surveillance. Put another way, employees want financial wellness help, but do not want their company to know too much about them. How can employers address this balancing act?
- Provide financial wellness training through a third-party provider. Outsourcing is often the easiest solution. In a perfect world, this is done through the benefits plan provider. Why? Because the employee is sharing personal financial information. They might be more comfortable sharing with a trusted, long-term provider than a new provider with a name they don't recognize. There is an understanding in place that both the employer and the benefits provider will respect employee confidentiality. If an employee reveals they are in a tough financial situation, they would not want the provider telling the employee's manager. Several levels of advice can be offered. Examples include online videos, chat features and tutorials. The employee must trust the firm has erected a wall between itself and the provider. The firm should commit to a long-term service contract, otherwise the employee loses the use of a familiar system when a contract is signed with a competitor. Put another way, you know what it's like when you are used to working with a logistics company that knows you and your firm's routines, then the firm changes providers and you and the new provider need to start at the beginning, establishing procedures.
- Make on-demand learning available through YouTube videos. The employer could either commission a series of custom videos or buy a service from a third-party provider. Unlike the first solution, this is "one way" learning. The employee is unable to interact with the provider and ask specific questions. This system has a degree of anonymity because the employee is not interacting with live people.
- Offer live classes where employees can interact with instructors. Some people like this option, especially if all the firm's employees tend to work out of one central location. It is constrained by the number of classes held for each session. What if someone is on vacation for that two-week period? The sessions could be recorded and archived, but that eliminates the potential for live interaction. Some people like the classroom learning model familiar from their school days.
- Partner with a local college. This solution offers several benefits. It preserves the live training aspect. The delivery through presenters with academic credentials adds a level of authority. If the college, the professors and the company are all local, there is a level of familiarity. The presentations can also be archived and stored. The academic as the presenter adds a level of expertise.
- Create an archive of educational learning content. This is another solution that can be purchased off the shelf. There is no interaction, but the depth of subjects is almost limitless. If an employee wants to learn about estate taxes or the financial aspects of real property management, videos or online content are available. This is true on-demand learning.
- Make material available in print. In the digital age, this can appear to be a retreat to outdated technology. There is an anonymous element to picking up a book, reading it on an airplane and underlining passages. It eliminates the concern someone is spying on the employee's activities. This eliminates the surveillance concern.
- Take the third-party provider solution to the next level. This strategy benefits both the benefits provider and the employee. The benefits provider is affiliated with a large financial services firm with a presence in the local market. The provider has local branch offices with agents or advisors who are trained in financial planning. The employee can be connected with an agent or advisor, with the understanding the employee has now become a prospect. There can be an understanding about how much "free" financial planning is done or how the delivery makes economic sense for the financial advisor or insurance agent. If the employee develops a relationship with the agent or advisor, this can carry on for years, from employment into retirement.
Related: SECURE 2.0 offers employers new financial wellness opportunities
There are many ways for an employer to provide financial wellness advice and respect the employee's desire for confidentiality.
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Bryce Sanders
Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He trains financial professionals on how to identify prospects within the wealthiest 2%-5% of their market, where to meet and socialize with them, how to talk with wealthy people and develop personal relationships, and how to transform wealthy friends into clients. Bryce spent 14 years with a major financial services firm as a successful financial advisor, two years as a district sales manager and four years as a home office manager. He developed personal relationships within the HNW community through his past involvement as a Trustee of the James A. Michener Art Museum, Board of Associates for the Bucks County Chapter of the Fox Chase Cancer Center, Board of Trustees for Stevens Institute of Technology and as a church lector. Bryce has been published in American City Business Journals, Barrons, InsuranceNewsNet, BenefitsPro, The Register, MDRT Round the Table, MDRT Blog, accountingweb.com, Advisorpedia and Horsesmouth.com. In Canada, his articles have appeared in Wealth Professional. He is the author of the book “Captivating the Wealthy Investor.”
