How to Create Financial Resiliency in Your Employees

Did you know that a financially resilient workforce can be your company's secret weapon? As HR professionals and benefits managers, you're perfectly positioned to empower your workforce with the gift of financial resiliency.

With things like competitive compensation and by creating a culture of open communication, you can transform your employees' relationship with money and secure their financial future.

Essential Tips for Enhancing Employee Financial Resiliency

Ready to boost your employees' financial confidence and stability? Let's explore some key tips for improving employee financial resiliency that will not only empower your workforce but also create a supportive and thriving environment.

1. Offer a Financial Wellness Program

According to PwC’s 2023 Employee Financial Wellness Survey, 57% of employees¹ say finances are the top cause of stress in their lives. Even among those earning $100,000 or more per year, 47% are stressed about their finances.

This financial stress can not only lead to lower productivity and higher absenteeism but also poor sleep, mental health issues, physical health issues, and relationship problems at home. 

The solution here is to help your employees stress less about their finances – a well-planned financial wellness program can help.

With fun and engaging budgeting workshops, insightful financial counseling, and access to financial planning tools, you’ll be providing your team with the resources and education they need. As a result, they’ll be better prepared to manage their finances and make smarter decisions.

2. Provide Competitive Compensation and Benefits

A big part of being ready for financial hardships and stressors is having a stable income and access to essential benefits.

To make sure your employees are well taken care of, keep an eye on industry standards and adjust their salaries so they can receive competitive compensation. Not only will this help you reel in the best talent, but it’ll also contribute to employee satisfaction and retention.

In this day and age, benefits packages aren’t just nice-to-haves – they’re something that can make a significant impact on your employees’ financial well-being. These benefits can give employees a sense of security and create a supportive work environment. 

But while employees and employees both have healthcare, life insurance, and retirement plans at the top of their list, 31% and 33% of employees² listed mandatory paid time off and mental health as most desired, respectively. For employers, those benefits didn’t reach the top 5 benefits.

3. Encourage Emergency Savings

Ever noticed how unexpected financial emergencies can really throw your employees off balance? Help your employees bounce back by encouraging them to build an emergency savings fund.

Offer educational resources and tools that’ll guide them in setting achievable savings goals. 

If you want to take it a step further, you could consider offering an employer-sponsored emergency savings program – something more and more companies are offering³. This way, they can effortlessly contribute to their savings through automatic payroll deductions.

4. Promote Retirement Planning

A financially resilient workforce means making sure your employees are ready to face retirement with confidence. The U.S. Federal Reserve found that only 36% of non-retired adults⁴ feel their retirement savings are on track. On top of that, 44% say it is not on track, and the rest aren’t sure. 

Keep Reading: 1 in 3 Americans Plan to Delay Retirement – 10 Tested Ways a Director of Retirement Can Help Get Them Back on Track

Promote retirement planning by offering retirement benefits such as a 401(k) plan and educating your team on the importance of saving for their golden years.

Financial education workshops and personalized retirement planning sessions can help your employees get a better grasp on their options and make sound decisions for a secure future.

5. Support Employee Development and Growth

Employees are leaving their jobs for better professional development opportunities (45%) at similar rates as they leave for better pay (48%)⁵. So it’s clear that employees want to feel like they're being invested in and that they have opportunities to grow. 

Investing in employee development and growth could take the form of opportunities for skill-building and professional growth through training programs, mentorship, and career development workshops.

Financial resiliency is all about empowering employees to tackle both present challenges and future uncertainties with assurance and ease.

6. Foster a Culture of Open Communication

Open communication is vital for addressing employees' financial concerns and challenges.

In general, 48% of workers⁶ say job satisfaction is affected by communication. Foster transparency and create a safe and judgment-free environment where employees can comfortably chat about their financial issues.

Don’t forget to have HR pros and financial counselors on standby, ready to offer support and guidance with practical resources.

Financial Wellness Leads to Financial Resiliency

Creating financial resiliency in your employees isn't overly complex, but it does require a thoughtful approach and some strategic planning.

By putting these practical steps into place, you’ll be on your way to empowering your workforce with the financial confidence they need to tackle life's challenges head-on.

Investing in their financial well-being today will pave the way to a more productive, satisfied, and resilient team for years to come. 

One fantastic resource to help you build financial resiliency in your employees is Enrich.

The Enrich Financial Wellness Program offers customized financial wellness solutions, including interactive courses, webinars, and personalized action plans. It's a fantastic resource to provide your workforce with engaging and tailored financial education. 

Interested in seeing what impact this interactive financial education program had on aspects of financial wellness? Find out in this 12-month study.

1 - https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html

2 - https://www.forbes.com/advisor/business/best-employee-benefits/

3 - https://www.nytimes.com/2022/10/07/your-money/rainy-day-fund-work.html

4 - https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-retirement.htm

5 - https://www.gartner.com/en/newsroom/press-releases/2022-09-15-gartner-hr-research-finds-just-25-percent-of-employees-are-confident-about-their-career-at-their-current-organization

6 - https://www.forbes.com/advisor/business/digital-communication-workplace/