As workers struggle to establish financial well-being, employers are starting to step in to help, impacting productivity.
The Wall Street Journal reports today that companies are stepping in with solutions for employees who might miss work over small issues, like a flat tire, and student loan debt that prevents employees from participating in retirement plans.
Rather than offer straight pay increases, companies are starting to offer services like payroll advances, emergency savings accounts and student loan support under the umbrella of “financial wellness.” Some of these are supported through payroll deductions, or through company matches and cash grants.
Some of the most common programs include:
• Payroll advance apps that allow employees to cash out on the hours they’ve already worked, ahead of payday;
• Emergency savings funds in which employees choose how much to deduct from each paycheck to put into the cash account, accessible at any time. Some employers offer a match;
• Auto-enrollment in financial wellness and 401(k) plans.
A recent Employee Benefit Research Institute survey reported that of companies with more than 500 employees, about half offered some kind of financial wellness program. Another 20% were implementing programs, and 29% said they are interested in launching one.
“The goal is to get people into the practice of saving, but how each company does it might be a little different,” Brian Nelson Ford, who leads the program offered by Atlanta’s SunTrust Banks Inc., tells The Journal. Read the story.
