Offer financial planning services to employees

To help your employees navigate the difficult economy, you might want to consider offering interoffice financial literacy and planning programs.

By Staff | September 13, 2012 | Last updated on September 13, 2012

2 min read

To help your employees navigate the difficult economy and manage their financial stress, you might want to consider offering interoffice financial literacy and planning programs.

In the U.S., California-based Financial Finesse is releasing a best practices guide to help employers implement these types of behavior changing financial wellness programs.

Read: Canadians earn a ‘B’ in financial literacy

They offer services ranging from account aggregation, which helps automate the budgeting process for employees, to retirement plan consultation sessions, which aim at increasing the amount employees save in their company-sponsored retirement plans.

According to Financial Finesse’s founder and CEO, Liz Davidson, the number of workplace financial health programs is growing. Inquiries about these services has increased from 20% in 2010 to more than 90% in 2012.

There’s been increased interest from employers looking for research and best practices regarding financial literacy and planning in 2012, says Judith Cohart, executive director of the personal finance employee education foundation, a non-profit U.S. research organization.

Read: Canadians need more financial knowledge

Davidson says this trend stems from employers who want to help their staff reduce expenses, pay off debts and save more for retirement. They’re most concerned with the stagnant economy, changes in benefits, increased health care costs, inflation, and taxes.

Employers who follow best practices and who offer the programs are seeing much higher retirement plan deferral rates, improved participation in flexible spending plans and other key benefits, as well as reduced absenteeism.

These programs can also help your staff develop and sustain positive financial habits, says Davidson.

Read:

Financial literacy only half the battle

Why financial literacy matters

Five easy financial resolutions

Financial literacy pays off for young Canadians