Employee Uncertainty About the Financial Road Ahead. Here’s How You Can Help.
Your employees may be feeling anxiety about money and the future. Education focused on financial literacy can help them feel more confident and empowered.
Who would have thought we’d ever experience a pandemic in our lifetime? If you asked your employees, the answer would have probably been not ever. The past few years have shown that the unexpected can become reality rather quickly and has caused
employees feelings of anxiety and uncertainty around their finances. What the past two years has brought to light is the need for
workplace education programs that build employee confidence about their financial futures.
While employees have begun to return to the office, they are struggling to find the balance between work and home life. Not only that, many employees are struggling to rebuild savings that took a substantial hit.
As employees try to navigate the pressures of work productivity and financial stability, it’s more important than ever for employers to “wrap their arms tightly around” employees, says Tom Conlon, Head of Retirement Sales, Morgan Stanley at Work. “At
Morgan Stanley at Work, we don’t just talk about money. We talk about how to take care of your people,” Conlon says. “Your employees are on a really complicated financial journey. As an employer, you need to be meeting them wherever they are and
shepherding them toward their goals.”
One of the Things on Employees' Minds Right Now: Money
Workers have long had anxiety about their financial lives, whether it’s paying off student loan debt, dealing with emergency expenses, buying a first home, financially supporting family members, or saving enough for retirement. Experiencing a pandemic
has worsened these anxieties. According to a study conducted by Betterment for Business, 76% of employees surveyed stated that the pandemic caused them to reexamine their financial situation.1
These worries can significantly affect productivity. In fact, employees’ collective ability to focus has been taxed in ways you never could have
imagined. In the latest PwC Employee Financial Wellness Survey 76% of stressed employees said financial worries have had a negative impact on their work performance and 55% spend 3 plus hours each week at work dealing with their finances.2
of workers report financial worries have had a negative impact on work performance
of workers say they spend 3+ hours each week at work dealing with finances
The coronavirus pandemic has only compounded these challenges. Even if your organization is in a sector or industry that hasn’t been hit as hard by unemployment and recession, your employees still have spouses, partners and family members who may be feeling
the strain.
In fact, employees’ collective ability to focus has been taxed in ways you never could have imagined. Human Resource Executive magazine reports that 62% of workers report losing at least an hour a day in productivity because of COVID-19-related stress;
32%
2 say they are losing more than two hours per day.
Your employees may be having a hard time staying motivated, sharp and on task because of all the questions they’re worried about.
QUESTIONS LIKE:
Should I be worried about my 401(k) plan account balance?
I’m strapped for cash. Should I make a withdrawal from my 401(k)?
My emergency savings are depleted. How would I pay for any unplanned expenses?
Should I tap my vested equity compensation for emergency cash?
How will I afford my children’s education?
Is now the right time to purchase a new home? Can I still afford it?
Is it time to downsize and sell my home?
How much debt is safe to incur?
Should I try to get a deferment on student loans or other debt?
Whether they’re working remotely or safely returning to the office, your employees are bringing this stress to work with them each day. Morgan Stanley at Work has some
suggestions for how you can ameliorate some of this
stress and help your people refocus their energies.
Five Ways You Can Foster Financial Health and Well-Being Right Now
of employees believe that it's important for the employer to offer financial wellness support
A strategic financial wellness program can help to increase focus, work satisfaction and loyalty, which in turn improves employee retention and productivity. These things are true during the best of times and even more so in current times. Consider that
65% of employees polled said they expect their employer to offer more financial wellness support than it did before the pandemic.1
HERE ARE FIVE TIPS TO CONSIDER
1. Ensure that your financial wellness program is holistic, attuned and responsive.
Each employee is having a slightly different experience with working intermittently or back to full-time in the office. Some employees may be thriving whereas others may be under intense pressure and dealing with any number of distractions. There
is no longer one cohesive “workplace,” and the financial wellness tools you offer employees should be both highly personalized and flexible to accommodate the variety of situations and needs employees have right now.
Find different ways to execute those lunch-and-learns, webinars, off-sites and other opportunities for employees to learn and connect. If you haven’t invested in upgrading and enhancing your virtual technology platforms, now is the time. It’s also
a good time to survey your employees about how they like to learn new things and how they like to receive information. Ask about the channels and tactics they are most receptive to and the frequency of touchpoints.
3. Facilitate mentorships and one-on-one coaching.
Whether an employee is still defining their goals and building a foundation or creating a financial plan to achieve those goals, they need guidance. A mentor or financial coach can provide the safe space they need to recalibrate and adjust. “People
don’t want to stop moving forward in their career. They want to be able to continue connecting one-on-one with those who can offer advice and mentorship,” says Laura Assomull, Head of Financial Wellness Business Development, Morgan Stanley at
Work. Virtual sessions, coffee meetings, affinity groups: it’s important to continue offering these things and to motivate your employees to take advantage of them.
4. Help employees mine all types of health and wellness resources.
“Make sure your people understand the full scope of support the company offers to minimize their stress levels,” says Assomull. This can include everything from reminding them of their mental health benefits, mediation resources and employee network
groups to an HSA account and a variety of benefits through employee assistance programs. Employees impacted by financial worries are more likely to take action if their employer offers incentives.2
Make sure your people understand the full scope of support the company offers to minimize their stress.
5. If you have a financial wellness program, understand how employees are engaging with it.
“For companies offering financial wellness, make sure your program is well activated, that your employees know how to access the full offering, including digital libraries. In order to understand the program’s impact you should measure everything
you can,” Conlon says. Your data, in the form of engagement and analytics reports, tells a powerful story about what your employees most need. Providing a financial wellness portal and knowing exactly how your people are engaging with your financial
wellness portal will help you figure out which messaging is the most effective, which content they are reading or interacting with, and the impact it’s having on their financial health.
Taking Care of Your People
Beyond simply providing a paycheck, you have the chance to provide unique solutions and new ways for employees to continue setting and reaching financial and life goals. In other words, you have the chance to take care of the people who are working
so hard for you right now.
And remember, during this unprecedented time in the history of work, you don’t have to go it alone. Morgan Stanley at Work is here for you and your team to answer any questions and share ideas for how you can help your employees lead better financial
lives.
This material has been prepared for informational purposes only. It is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.
Information contained herein has been obtained from sources considered to be reliable. Morgan Stanley Smith Barney LLC does not guarantee their accuracy or completeness.
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