Saving for a wedding, first home, education, retirement, or other major life event takes know-how and effort. Unfortunately, many Americans aren't anywhere close to having enough savings, and more than half of U.S. workers don’t have access to a retirement savings plan to help them save for the long-term. Finding financial solutions may be challenging or seem out of reach for many.
Financial well-being is a complex topic. Rising living expenses, increased debt (including student loan debt), and a slowly recovering economy all add to the mix. As an employer, you may even see firsthand the impact that stress from financial issues can put on your employees. It could even lead to turnover, absenteeism, and loss of productivity.
A recent Paychex study of over 2,000 American employees indicates that financial stress is on the rise. Unexpected bills, little or no savings, and the need to take a second job are among the top reasons for their struggles. However, without a lack of financial knowledge or a basic understanding of money matters in the first place, these stresses could be imminent.
A lack of financial knowledge can hold anyone back. Left with few reliable resources like where to find information and get financial questions answered, your employees will likely continue to struggle.
What financial challenges do your employees need help with most?
As diverse as your employees are, so too are the gaps in their financial understanding. Each of them faces a unique situation. Common financial topics employees often need help with may include:
Household budgeting: creating a budget for the first time, getting expenses under control, setting realistic goals for a household budget.
Managing credit and debt: understanding how credit works, credit score and credit history, student loans, refinancing, bankruptcy, and creating a personal financial strategy.
Investing: planning for retirement, understanding IRAs and CDs, and best places to invest based on age and goals.
Saving: learning money-saving tips and ideas, creating an education savings plan, and how to choose between saving and investing.
Taxes: how to avoid tax-time errors, understanding deductions, tax breaks for education, moving, and homeownership.
Insurance: understanding what type of insurance you need, life insurance options, and the details of long-term care and disability insurance.
What can a small business owner do?
As a small business owner, you know the value of a good employee. You want to take good care of the employees who make your business run smoothly every day. Providing financial wellness resources and education may seem out of reach for your business to offer, but there are readily available resources that can help.
For example, Paychex payroll clients can sign up and take advantage of FinFit, a program that enables employers to offer benefits to their employees such as a personal financial wellness assessment, online educational tools and resources, and even short-term employee loans for unexpected expenses.
Paychex also works with Peanut Butter for companies that want to help their employees with student loan assistance. Employees gain access to free and paid counseling options and a refinancing marketplace. Companies can also build affinity with their employees by participating in their student loan repayment.
While you may be limited in the number of benefits you can offer your workforce, you can provide resources such as financial wellness solutions that can make a lasting impact.