How HR Departments Can Help Employees Reach their Financial Goals
As the calendar flips to 2024, it's a renewed opportunity for employees to reassess and rejuvenate their financial aspirations. Financial wellbeing is more than a personal agenda; it's a critical component of overall job satisfaction and productivity.
This year, as employees look toward setting fresh financial goals, the role of companies, particularly HR departments, in facilitating this journey is more significant than ever. Outside of affecting salaries, HR departments can foster an environment where employees can thrive financially through goal-setting, understanding benefits, and financial wellbeing programming.
The importance of playing an active role in employee financial wellness
A staggering 60% of full-time employees report stress over their finances, according to a PwC financial wellness survey. Aside from the personal turmoil this stress can cause, it also seeps into work performance and overall morale.
Research highlighted by the Corporate Wellness Magazine illuminates this further, with 58% of employees who feel financial stress acknowledging its negative effect on their job performance.
However, with the new year comes opportunity and motivation for change. A study by Fidelity Investments indicates 66% of individuals are considering financial resolutions, and the message is clear: people want to improve their finances, and it's in the best interest of companies to help employees improve their financial wellbeing.
Encourage goal-setting
The power of setting specific, measurable goals is undeniable – just consider the popularity of the commonly-used SMART goal method. Simply put, when people set specific goals, they are more likely to achieve them. Encouraging employees to specifically articulate their financial wellness goals can be transformative, and improve the likelihood of reaching their overall goal of financial health.
While personal finances are private, understanding the general financial aspirations of your workforce can tailor your support effectively. A simple, anonymous survey can yield insights into the collective financial pulse of your employees, enabling more targeted and impactful assistance.
Clarify your benefits
Knowledge is power, especially when it comes to employee benefits. Ensuring that your team is fully aware of and understands how to utilize their benefits is crucial. Key dates, accessible resources, and straightforward onboarding processes remove barriers to benefit utilization. Furthermore, being a readily available resource for benefit-related inquiries and conducting workshops can significantly demystify and maximize the value of these offerings.
Offer financial wellness programming
Providing comprehensive resources on budgeting, saving, and investing empowers employees to take charge of their financial destiny. To learn more about how an effective financial wellness program can impact employees, check out our financial wellness programming whitepaper.
Paperwork can help you provide a tailored financial wellness app to your employees. We specialize in helping employees set and achieve their goals with personalized advice, goal tracking, and action lists. Our app also integrates with your employee benefits, to help employees make sure they are getting the most out of their compensation package.
To learn more about Paperwork and empower your employees in their financial wellness journey, schedule a demo today.