Authored by: Scott Liggett, J.D., AIF®
Could the key to a successful financial wellness program for employees really be as simple as the lyrics to a Bruce Springsteen song? Maybe so.
Stressors in the workplace have existed since before the timeclock and for years retirement plan sponsors have been frustrated that vendors’ haphazard financial education programs are rarely well received by employees, let alone understood. Recent rebranding programs as promoting “financial wellness” can all too often meet the same results as most of these products and services have usage rates of less than 20% among plan participants.[ii]
All the while, employees continue to report that a majority of their stress is caused by financial or money matters and it’s impacting their productivity at work.
Keep in mind, retirement plan participants have long had access to online financial tools, including mobile apps, budgeting and money management software. So, why aren’t these tools making a more positive impact on employees’ stress levels? I believe one factor is that it’s extremely difficult for a mobile app or online questionnaire to capture the complexity and nuance of an individual’s personal challenges related to student debt, divorce, family health, children and dependent care, or job changes.
Rather than continuing down the same path, what if more plan sponsors offered programs that pair the benefits of ever-improving technology, together with a human expertise/coaching element (either in-person or virtual)? In-person/virtual coaching could provide actionable roadmaps for employees to help them navigate their personal financial “I wonder what should I be doing” journey that we all face from time to time.
In my humble opinion, “financial education” can and should continue to be offered by employers to help their work force gain better financial literacy. However, if employers want better financial outcomes for their participants, they need to work with their retirement plan advisor to create and offer more opportunities for employees to indeed …. have someone to talk to and a little of that “human touch”.
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[i] Human Touch, Columbia Records, Bruce Springsteen (1992)
[ii] Cerulli Associates Report – U.S. Retirement End-Investor 2024
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