Modes of Persuasion
More employers today are investing their time and money in financial wellness programs. And many want to know how to make this benefit more appealing—and engaging—to their workers.
The first thing an adviser with such a client should do is “try to understand its culture and the various segments of its employees,” says Nancy DeRusso, managing director and head of coaching at Ayco, a Goldman Sachs company. “Perhaps they’ll learn that most of the company’s employees don’t work at their desk with a computer,” so then, a mobile app or one-on-one coaching from a call center would be the best way to connect, DeRusso says.
“The next step is to meet employees where they are financially,” DeRusso says. Ayco—which offers financial counseling to employees across corporate America, covers seven topics: tax planning; risk management; benefits and compensation; cash flow planning; investment planning; retirement planning; and estate planning. These topics resound the most with all levels of workers, DeRusso says.
Ayco presents its financial wellness program three ways: through group educational meetings, digital tools and one-on-one counseling, the last being most popular, DeRusso notes.
At TIAA, workers’ main topic of interest is learning about managing their daily finances, including budgeting and emergency savings, says Snezana Zlatar, senior managing director, financial wellness advice and innovation, at TIAA. “Second is saving and investing for retirement and other long-term goals, and, third, protecting against risks.”
Tom Kelly, principal and voluntary benefits leader at Buck, points to a shift in priorities for the programs, away from retirement readiness first. “Today, employers acknowledge that short-term financial stressors should be addressed before a participant can save for retirement. That means helping them with their budgets, including how to pay down high-interest credit card debt, student loan debt, [etc.]. To be successful, a financial wellness program needs real-world solutions.”
Matt Compton, director of retirement services at Brio Benefit Consulting, says reducing people’s financial stress improves their quality of life. “Employees worry just as much about quality of life as they do their salary,” he says. “We believe a sound financial wellness program should help employees keep spending within their means, and this can be achieved by giving them a comprehensive suite of tools to make good decisions.”
Compton also recommends that companies keep their financial wellness programs separate from other benefits.
Finally, the Retirement Advisor Council suggests that employers give their workers financial incentives for participating in their financial wellness program, much as they do with health benefits.