A Pay it Forward Strategy: Financial Literacy that Retains Talent

We’re in the thick of National Financial Literacy Month. Usually, that conjures up thoughts on how to educate our members and communities on financial wellness topics, such as building savings, basics of investing and creating a budget. But what if we looked at it from an employee perspective?

The Cost of Employees Under Financial Stress

According to BrightPlan’s 2024 Wellness Barometer Survey, 91 percent of employees experience stress about their financial situation. It’s a troublesome thought that financial stress is a concern for nearly all employees and one that spans all levels of the organization. The study reveals that even 67 percent of the C-suite struggles with this, considering the challenges of inflation, geopolitical tensions and elevated interest rates.

But a workforce engulfed in financial stress is only the beginning, because it doesn’t just stay at home. It trickles down to their work, impacting productivity and engagement. How much so? The BrightPlan Survey states, “Respondents are losing on average 7.3 hours of productivity each week, costing U.S. employers potentially $183 billion annually.”

Worse yet, financial stress can lead to increased rates of turnover. This is, perhaps, the most costly outcome for businesses, and one that can’t be ignored.

Financial Wellness Solutions That Pay Off

To address the financial stressors your employees may face, your organization can provide a variety of financial wellness resources to provide education, tools and support, including:

• Retirement Planning: Many companies offer a 401(k) package, but consider offering a matching contribution and participation incentives to maximize employee dollars.
• One-on-one Financial Counseling: As part of your 401(k) package, your provider may offer one-on-one financial coaching and advisory sessions that employees can take advantage of to create personalized plans and better understand or manage their investments.
• Financial Wellness Tools: These days, there are plenty of apps and platforms that cover the gamut of wellness, including that of the financial variety. Some of the tools that may be useful to your team could be budget planning and savings goal tracking.
• Emergency Fund Programs: You may be able to offer employees the chance to request funds for certain qualified financial emergency situations by establishing an Employee Relief Fund.
• Healthcare Education: With healthcare costs rising, they can be a huge source of financial stress for employees. Make sure they understand the ins and outs of your insurance package to know which costs are covered, whether there are support tools (for example, a health savings account) and how they can utilize the insurance most effectively to meet their family’s health needs. Keep in mind that open enrollment isn’t the only time to educate members on your health benefits – you can keep it going all year round!
• Employee Assistance Program (EAP): An EAP program may not be specifically financial-focused, but most include some form of financial planning in addition to mental health and legal support resources that employees might find helpful during difficult times, usually at no or low cost.

Build a Strategy That Supports & Retains

The financial burdens your employees carry matter because financial wellness isn’t only a personal goal – it’s a keystone for workplace strength. By incorporating financial wellness programs into your retention strategy, you’re setting yourself apart as a differentiator in the employment game.

So, take the time this Financial Literacy Month to pay it forward and shine a light on the resources you offer to employees. When they feel supported and confident in their ability to stay on track financially, your credit union will also benefit from longer-term retention, higher engagement and better productivity.

Melanie Lambie is Vizo Financial’s senior human resources generalist. She has over 15 years of experience in human resources and maintains several certifications, including her Certified Plan Sponsor Professional status from the Plan Sponsor Council of America (PSCA), Professional in Human Resources certification from the HR Certification Institute (HRCI) and Certified Professional designation from the Society for Human Resources Management (SHRM). In May of 2022, she completed the National Credit Union Foundations’ Development Education (DE) program, earning her a Credit Union Development Educator (CUDE) designation.