It is not a secret that most Americans do not have enough saved for retirement. This is a national crisis but it is also a challenge for employers who have both selfish as well as altruistic reasons for helping employees save more.
Financially sick employees cost employers millions of dollars every year in both hard and soft dollars. Helping employees reach a better financial state is a workplace problem to solve because happy, healthy employees result in lower turnover, less absenteeism and increased productivity.
At Financial Elements, we believe that by proactively improving the overall financial health of each employee, employers can boost the health of their organization as well. Our program centers around proactive coaching to inspire behavior modification but we are also introducing tools/technology to help tackle some of the biggest financial challenges facing Americans today.
Here are a few questions that our mentors are helping employees answer and the tools we are using to help them stay on track.
Am I spending too much?
One of the primary causes of financial anxiety is overspending. We give employees access to an online tool that guides them through entering their financial goals and current information and translates that information into a visually-appealing, graphic-driven tracking system for their everyday spending. This is a great way for our mentors to connect with employees and inspire true behavior modification.
Am I saving enough?
We recently announced a partnership with Financial Soundings, to give employers the option to send every active and retired employee a personalized retirement guide. This guide gives employees a Retirement Readiness Score based on their age, current savings and salary and motivates action because employees know if they are saving enough based on their own specific circumstances.
Am I invested appropriately?
There are so many different variables to be considered when evaluating if someone is invested appropriately. We are working with employers to introduce Personalized Portfolios at a plan level. These managed retirement accounts go beyond the industry standard of merely considering the employee's age to help determine what investment strategy is the most appropriate. It gives employees and plan sponsors the peace of mind that the investments and their risk level match their goals.
How can I save more?
We have partnered with Evoshare to offer the opportunity to turn daily purchases into increased retirement contributions through a program we call Cashback Contributions. This program is implemented by employers and is just another way to keep saving for retirement top of mind with their employees.
We are excited to face this savings challenge head-on by providing employers with tools and employees with personalized guidance. If you would like to learn more about helping your employees get to a better financial state, let us know by calling 877.742.2022 or emailing email@example.com.