The following are important to help you consider why you should provide quality financial programs to employees.
1. “Your fiduciary responsibility will be reduced.” The employer fiduciary responsibility as a plan
sponsor is reduced when employees’ personal finances and their adequacy of saving for
retirement are in order. The courts will end up sorting out responsibility and it is going to come
down to this key question: “Did what the employer provide in the form of employee financial
education have a high likelihood of connecting with the people at different levels?” The CFO
who wakes up after a market downturn does not want to say: “You never told me these lawsuits
could happen.” A quality provider helps the company avoid this CFO nightmare.
2. “Your executives will be able to contribute the maximum to the company retirement plan.” Most
of the employer’s executives are highly compensated and by law they may not contribute the
maximum possible to their qualified retirement program unless a high proportion of those earning
lower incomes also are participating in the plan. A quality provider increases participation thus
allowing maximum contributions for the management team.
3. “Your ROI will be 3:1 or better.” The projected return-on-investment (ROI) for a quality financial
program is 3:1. Employers offering employees easy access to a quality basic financial education
program are likely to achieve a minimum ROI of 3:1 annually, suggests the Personal Finance
Employee Education Foundation (www.PersonalFinanceFoundation.org). For example, the
employer/employee who spends $250 on a quality financial program should result in a gain of
$750 in improved productivity.
4. “You will be contracting for a value-based financial program that improves your bottom line.”
Quality providers of workplace financial programs offer “value-based plans.” The initial
investment in a high-value financial program can be compared to the gains in less employee work
time spent dealing with personal financial concerns, improvements in job productivity, improved
health, reduced absenteeism, and positive changes in other employer cost factors. Employer specific
ROI calculations can be provided by the Personal Finance Employee Education Foundation. (Note – Ufirst is not a provider of workplace financial programs and does not offer a value based plan – it is a web-based guidance tool that can educate your employees at their cost, not yours).
5. “Your best competitors are getting ahead of you on this issue.” Industry peers are profitably
implementing basic financial education for employees. For years employers have “known” that
employees who experience high financial distress negatively impact the bottom line. Today,
leading employers - large and small - are reaping profits by providing employees easy access to
no-cost and low-cost financial programs. A quality workplace financial program provides
employees on-going, year-round access to help with their overall financial fitness at every stage
of their careers. This helps employees live better financial lives as well as maximize savings for
6. “Your financially healthy employees are going to love their employer.” A quality financial
literacy program strengthens the inseparability of employer and employee interests. It is designed
to help people practice good financial behaviors that over time result in positive changes in their
financial lives. The changes include increases in assets, decreases in liabilities, increases in net
worth, decreases in financial distress, increases in financial wellbeing, being on track for a
financially successful retirement, and being prepared to legally transfer assets to beneficiaries.
Employees who enjoy high financial wellness are engaged in their work responsibilities and are
advocates for their employer.
7. “You will retain your best employees.” A quality financial program helps human resources attract,
motivate, reward, and retain the right employees. A quality financial program enhances employee
financial wellness that contributes to work/life balance and total employee wellbeing.
8. “You know we cannot effectively address the myriad of financial problems and challenges of
your employees, however we want to tell you that we and our partners can honestly do it all.”
Employers need an excellent mix of quality financial programs because no single financial
literacy program can do everything. There are a number of vital parts to a comprehensive quality
financial program. The best mix includes information on benefit choices provided through human
resources. In addition, employees at points in their careers may need access to financial services
provided by a credit union, non-profit credit counseling company, Cooperative Extension, and a
financial advisor. Partnering with quality providers of non-competing services and promoting
those organizations as part of a more comprehensive menu of financial services helps convince
employers of the value of your organization’s services. Offering the Money Merge Account®
System through payroll deduction is a tremendous addition to the benefits you already offer.
9. “You will sleep better at night knowing that you are doing the right thing for your employees as
a steward of employee wellbeing.” Quality financial programs change the financial lives of
employees for the better. They live on their incomes and save for the future. Doing what is right
for your employees is old-fashioned idealism and altruism.
Most of the notes above were copied from http://pfeef.org which is an organization dedicated to the
financial wellness of employees. The notes in regard to offering the Money Merge Account®
System as an employee benefit have been added where we thought appropriate.
Some of these suggestions are adapted from Delivering Financial Literacy Instruction to Adults (2008), by
E. Thomas Garman and Alan J. Gappinger, 330 pages (Heartland Institute of Financial Education
[http://heartlandfinancialeducation.org[), and include ideas in Chapter 3 of William J. Arnone.
The employee financial wellness benefits program offered by the Equity 1 Group assists employees with financial issues by providing one-on-one coaching, web-based software, and free, unlimited customer and technical support. Employees may use a combination of outside counseling and our financial resources to get them back on the road to financial health and peace of mind. firstname.lastname@example.org