Financial stress has a significant impact on productivity. How financial advisors can save the day.
One of the biggest issues many companies face is an
unmotivated workforce. Productivity, or lack thereof, can be a huge burden on a
company’s profitability. According to a study conducted by finance experts and researchers
at leading universities, 30 million workers (or one in four) suffer serious
financial distress that impacts their employers. Up to 80 percent of those
workers spent time during work hours worrying about personal financial issues
and dealing with those issues instead of working.
And you, retirement plan advisor, can be the key to helping
these companies improve their bottom line. Retirement advisors have the tools
necessary to address a client company’s productivity problem. It comes in the form of education.
While it may be difficult for employers to focus on their
employees’ financial well-being, it behooves companies to take personal
financial fitness seriously. The same study shows that 40-50 percent of workers
who are financially distress report negative health impacts of their financial
Some of the ways in which retirement plan advisors can help plan participants regain control over their financial fitness include:
sessions. By holding on-site or virtual training sessions, advisors can
help employees connect with the idea of financial wellness as part of their
work/life balance. Advisors can easily reach more plan participants while they
are on the job than in after-hour sessions.
programs. Such programs foster a culture that promotes conversation around
money and saving. Programs can help participants set goals and measure results
on a regular basis. By creating a system of accountability, employers can
create a mindset of saving in their employees.
The best way to know what employees need is to ask them. Conduct quarterly or
semi-annual surveys to find out what your employees’ financial concerns are.
Also include checkups to see how they’ve improved after their financial
wellness program has been implemented.
methods. A five-percent retirement account deduction, a dollar-amount
monthly savings account contribution, a consolidation of credit card accounts,
or a refinancing of loans can help participants feel they’re more in control of
their finances. Show your participants how to save in all areas, not just in
Employees who are unaware of what they’re spending monthly (and on what they’re
spending) are less likely to notice they’re overspending. A simple notebook or
worksheet can help them track each dollar they spend over a month. Advisors can
then go over these worksheets with them to identify areas of improvement.
articles. Timely emailed communications that speak to the age and concerns
of participants can alert participants to potential saving opportunities.New parents may want to know about
saving for college without impacting retirement investments, and older workers
may benefit from information on how to allocate their retirement contributions
for maximum impact.
Productivity can be greatly advanced by shifting your client employer’s culture to focus more on the personal financial success of each employee. By being the resource and guiding force for such success, advisors can deliver life-altering value that ensures a much brighter retirement for all employees.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.get xpress proposal