Employees today are increasingly interested in financial counseling and advice and are looking for those services through the workplace.
MetLife’s Study of Employee Benefit Trends found that many workers want financial education through work and are interested in speaking with a financial planner.
Never has there been a better time to offer employees access to financial education, counseling, and advice.
Why the surge in interest in financial planning and education services? A number of reasons explain this trend.
Key reasons
- The American workforce is aging, and older workers tend to focus more on saving and investing for retirement and their children’s education.
- Fewer employees can count on company-financed pensions, so more people must save through 401(k) plans, IRAs, or other vehicles.
- Employees have increasing responsibility for health care costs today and in retirement, with more consumer-driven plans and less employer-covered retiree health care.
- The investment and credit landscape has grown more complex, with volatile markets and a wider array of investment and loan products.
The bottom line is that for many employees it is difficult—and sometimes overwhelming—to plan, budget, save, and invest.
Headlines about consumer debt, low confidence, inflation concerns, and unstable financial institutions can turn uncertainty into fear and inaction, which can affect both health and productivity.
Studies show a sizable share of workers are seriously distressed about their personal finances, and many who experience financial stress spend time at work dealing with or worrying about these problems.
The workplace is a logical place for employees to seek financial education because workers already make significant financial decisions at work, such as choosing how much to contribute to a 401(k) plan and which medical plan to select.
For additional guidance on retirement planning, see The Importance of Financial Planning for Retirement.
For information on aligning benefits and employee health responsibility, consider resources such as Transforming Employee Health Benefits.
How to bring financial education and advice to employees
- Ask your 401(k) provider what financial education services it offers; many provide online tools, calculators, articles, and questionnaires for employees.
- Employee assistance programs (EAPs) often include debt counseling; verify the services your EAP provides and make employees aware of them.
- Look to local community resources—chambers of commerce and nonprofit organizations—that can deliver affordable speakers or seminars on financial topics.
- Check resources from the Certified Financial Planner Board of Standards for tools and materials aimed at human resources professionals.
If employees want personalized help, encourage them to talk to an agent who can point them to appropriate benefits and services.
Frequently Asked Questions
What types of financial education work best in the workplace?
Workshops, online modules, and one-on-one counseling each serve different needs; offering a mix reaches more employees effectively.
Can small employers afford to provide financial education?
Yes; many low-cost options exist such as webinars, community speakers, and materials provided through benefits vendors.
How can employers measure the impact of financial education?
Use surveys, participation rates, and follow-up assessments of employee confidence and behavior to track outcomes.
Should financial education include information about retirement and health care together?
Yes; integrating retirement and health care guidance helps employees make decisions that account for both short- and long-term costs.