June 13, 2023

Introduction

On June 13, 2023, the Business Group held a call for members with employer-facing responsibilities to discuss their efforts to support the financial health and well-being of employees and their families. Although financial well-being has been an established component of employers’ comprehensive well-being strategies for a while, the current macroeconomic climate has reemphasized the importance of providing benefits to educate and meet employees’ financial needs across the globe.

The subsequent recap provides an overview of some key themes and approaches shared throughout the call.

Financial well-being remains a priority for nearly all employers on the call—with an increasing focus on strengthening the global capacity of benefits offered and partnering with financial well-being solutions that can serve the short- and long-term financial needs of employees.

Most employers on the call shared that they have expanded the scope of their financial well-being programs over the last few years, and many are focused on enhancing offerings for culturally relevant education in each of the countries where they operate. Some of the financial well-being vendors (with global capacity) employers are evaluating and/or launching include Nudge, Enrich, Origin, UBS and NorthStar. Other vendors employers are using to support financial well-being within the U.S. include Ayco, Fidelity, MetLife and RetireWise, along with existing employee assistance program (EAP) and retirement partners. For those interested in implementing a global financial well-being solution, a value differentiator noted by multiple employers is a vendor’s ability to curate local financial educational content, as well as the ability to hire local financial professionals aware of local nuances and considerations. Some vendors can even manage employee assets, in addition to providing one-on-one financial planning, coaching and education.

Employers are leveraging a variety of approaches, including emergency savings initiatives, early access to earned wages, retirement programs, locally tailored financial advice, employee stock purchase plans (ESPPs) and educational resources, to support financial decision-making.

Employers are taking stock of employees’ financial health to illuminate the programs that would prove most beneficial. For example, one employer found that financial health was a low-scoring area for their population after surveying employees using Harvard’s Flourishing Index. To improve employee financial health, the employer launched a new emergency savings account benefit and provided a $1,000 incentive for employees to bolster participation. Employees can earn $750 by completing a set of financial education courses and receive up to $250 in matching funds provided by the employer.

Several employers offer an ESPP (typically with a 15% discount for employees and favorable tax treatment) that has been very popular with employees. Many offer the program to all employees, regardless of hourly or salaried position, and often tie educational sessions to the ESPP to maximize their impact. To encourage long-term financial health, some employers mandate that employees hold onto stock for at least 1 year before selling. While predominantly offered in the U.S., there was mention of eligibility in India, Israel and Canada as well.

More Topics

Financial Well-being