By Mrs. Shay Cook, CEO & Founder of Crusaders for Change, LLC (C4C) Accredited Financial Counselor® & Financial Fitness Coach®
In 2022, the financial well-being of U.S. workers took a significant hit due to soaring inflation and economic instability, reaching levels not seen since the Great Recession. A concerning trend emerged from a recent 2024 Bank of America report: fewer than half of working adults feel financially stable. As the year draws to a close, it's the perfect time to encourage your employees to reflect on their financial health and set goals for the upcoming year. By offering year-end financial wellness reviews, you can provide your employees with valuable insights and support to achieve their financial objectives.
What is a year-end financial wellness review?
A Year-End Financial Wellness Review is a comprehensive assessment of an individual's financial health and well-being. It involves reviewing financial goals, tracking progress, identifying areas for improvement, and setting new financial goals for the upcoming year.
Key components of a year-end financial wellness review include:
Reviewing financial goals: Assess whether you achieved your financial goals for the year, such as saving for a down payment, paying off debt, or increasing your retirement savings.
Evaluating financial performance: Analyze your income, expenses, and net worth to understand your overall financial health.
Identifying areas for improvement: Identify areas where you can make adjustments to improve your financial situation, such as reducing spending, increasing savings, or investing in your future.
Setting new financial goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) financial goals for the upcoming year.
What are the benefits to employers of a year-end financial wellness review?
Increased employee engagement: Financial wellness programs can boost employee morale and create a positive workplace culture. Employees who feel financially secure are more likely to be satisfied with their jobs and committed to their employer.
Improved productivity: Employees who are financially secure are more likely to be focused and productive at work. They are less likely to be distracted by money worries. When employees are not burdened by financial worries, they are better able to focus on problem-solving and creative thinking.
Reduced absenteeism: Financial stress can lead to increased absenteeism. By addressing employees' financial concerns, you can improve attendance and productivity.
Enhanced employee retention: A strong financial wellness program can help attract and retain top talent. Financial wellness programs show employees that their employer cares about their overall well-being. This can boost morale and create a positive work environment. Financial wellness programs can help to build a strong company culture based on trust, respect, and empathy.
What topics do year-end financial wellness reviews cover?
Budgeting and saving: Budgeting and saving are fundamental to financial well-being. By creating a realistic budget and consistently saving money, you can achieve your financial goals and build a strong financial foundation. Help your employees create and stick to a budget, and encourage them to build an emergency fund.
Debt management: Debt can be a significant source of stress and anxiety for employees. By providing resources and support, employers can help their employees manage debt effectively and improve their overall financial well-being. Provide strategies for managing debt and reducing financial stress. Encourage employees to seek help from a credit counselor or financial advisor for personalized guidance and support.
Retirement planning: Retirement planning is a crucial aspect of financial well-being. By encouraging them to start early and make consistent contributions, you can help ensure employees a comfortable retirement. Discuss retirement goals and help employees develop a savings plan.
Investment strategies: Offer guidance on investing for the future.
Insurance coverage: Review employees' insurance needs and ensure they have adequate coverage.
Do employee financial wellness programs really benefit employers?
A 2022 PwC Employee Financial Wellness Survey revealed that financially stressed employees are twice as likely to seek new job opportunities, and 76% reported that financial stress negatively impacts their productivity. A TIAA Financial Wellness Survey revealed that a significant majority of Gen Z (65%) and Millennials (61%) believe employers should play an active role in supporting employee financial well-being.
Numerous studies have shown that financial wellness programs can have a positive impact on various aspects of an organization, including:
Increased Productivity: Financially secure Employees are more focused, less stressed, and more productive.
Improved Employee Morale: Financial wellness programs can boost employee morale and job satisfaction.
Reduced Absenteeism: By addressing financial stress, employers can reduce absenteeism and presenteeism (when employees are physically present but not productive).
Enhanced Employee Retention: Offering financial wellness benefits can help attract and retain top talent.
Stronger Employer Brand: A strong commitment to employee well-being can enhance an employer's brand reputation and attract top talent.
A study by the Society for Human Resource Management (SHRM) found that employees who participate in financial wellness programs are more likely to be satisfied with their jobs and committed to their organization. Financial wellness programs are a win-win for both employers and employees. A remarkable 91% of employers have experienced increased employee satisfaction by offering financial wellness resources and tools.
By investing in employee financial wellness, businesses can reap significant rewards in terms of improved employee performance, reduced turnover, and a stronger company culture.
How can I offer year-end financial wellness reviews to my employees?
Assess your employees' needs: Conduct a survey or needs assessment to identify the financial challenges and goals of your employees.
Develop a comprehensive program: Create a program that addresses the specific needs of your workforce, including workshops, seminars, and one-on-one counseling. You can partner with Crusaders for Change (C4C) –we make it easy with our customizable employee financial wellness programs!
Promote the program: Communicate the benefits of the program to your employees and encourage participation. Give employees the opportunity and time to participate, and provide incentives.
Offer ongoing support: Provide resources and support throughout the year to help employees maintain their financial well-being.
By offering year-end financial wellness reviews, you can demonstrate your commitment to your employees' well-being and create a more positive and productive workplace. C4C offers customized financial wellness programs that fit the needs of small businesses, nonprofits, corporations, local and state governments, and federal government institutions. We cater to your unique needs, empowering your workforce and elevating your organization's success.
Our Tailored Solutions:
Interactive Workshops and Events: We offer engaging workshops on topics such as budgeting, debt management, and saving for retirement.
Financial Counseling: Our Accredited Financial Counselors® and Financial Fitness Coaches® provide personalized guidance to address employees' unique needs.
Online Resources and Tools: We offer a library of educational materials and interactive tools to empower employees on their financial journey.
Contact Crusaders for Change today to learn more about our financial wellness programs and how we can help your employees achieve their financial goals.
What’s next >> Check out our podcast, “Managing Financial Work Stress: From Hardships To Layoffs“
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