State Street Global Advisors and Benz Communications work
with leading employers to create six-part framework to guide
corporate programs aimed at improving workers’ financial
security
State Street Global Advisors (SSGA) and Benz Communications
today released an easy-to-implement framework that companies of all
sizes can use to develop successful workplace financial wellness
programs.
According to research from SSGA, 61 percent of employees
experience moderate to high levels of financial stress1. The
majority of employers feel a sense of responsibility for helping
employees gain financial security. However, when faced with
workers’ diverse income levels and financial know-how, in addition
to cultural issues around discussing financial matters, employers
may not see a clear path to driving employees’ financial
wellness.
To address these needs, SSGA and Benz Communications convened a
group of companies including Los Alamos National Laboratory and
Harvard behavioral economist Brigitte Madrian, to build a framework
which employers can use to kick-start a financial wellness program.
Late last year, the companies met in New York for a financial
wellness “hackathon” that yielded best practices around helping
workers achieve greater financial security.
“The urgency of addressing employee financial wellbeing inspired
us to collaborate with employers and create a framework that helps
them to take action,” said Megan Yost, head of employee engagement,
global defined contribution at SSGA. “SSGA believes that elevating
these issues and engaging employees in conversations about
financial wellness will help alleviate their daily stressors,
increase their productivity and help guide them towards more secure
retirements.”
Jennifer Benz, founder and CEO of Benz Communications, added,
“In some ways, financial wellness has started to eclipse health
promotion as the foremost wellness program need. This framework can
be the first step for thousands of US employees toward getting out
of debt, saving more, understanding investing and forming a solid
plan for their financial future. Helping people achieve financial
security was a mission shared by everyone at the hackathon, and I
know it will resonate with like-minded companies who want the same
for their employees.”
Among the working group’s recommendations:
1. Understand the financial landscape. For employers,
it’s important to understand employees’ financial stressors and
priorities, both at work and at home, when developing a financial
wellness strategy. Understanding whether debt, budgeting or simple
financial literacy are hampering financial stability are key to
building a successful plan.
2. Define financial wellness for your organization. To do
this, companies must first determine how they’d like to influence
employees’ wellbeing, while understanding that financial status
isn’t static. As a result, financial wellness programs should aim
to meet employees’ varying needs. This effort can help benefits
teams align overall rewards and benefits programs with employee
wellbeing.
3. Lean on best practices. Corporate budgets and
resources vary, but the group recommends the following as critical
best practices: implementing benefits that engage and matter to
employees (i.e., 401(k) matching contributions), using smart
benefits design (including automated plan features), segmenting
financial solutions and communication to target employees at
diverse income and financial knowledge levels and communicating
year round to ensure messages stick.
4. Explore established and emerging solutions. There are
many vendors, solutions and nonprofit institutions available to
support employers with financial wellness programs. The group
encourages companies to seek partners in areas like financial
counseling/planning, concierge services and employee assistance
programs.
5. Overcome challenges. The group offers ideas around how
to engage employees and sidestep inertia, bridge complex and
disconnected programs and work effectively with limited
resources.
6. Build a business case. A wide body of research
concludes that the financial impact of workplace health and
wellness programs have saved up to $3.00 for every dollar spent.
While financial wellness differs from physical wellness, the group
recommends framing the case for financial wellness programs in
similar terms, including decreased absenteeism and increased
productivity.
The full working group report and supporting infographic on U.S.
financial wellness, is free for download at
benzcommunications.com/financialwellness.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping our clients, and those who rely on them,
achieve financial security. We partner with many of the world’s
largest, most sophisticated investors and financial intermediaries
to help them reach their goals through a rigorous, research-driven
investment process spanning both indexing and active disciplines.
With trillions* in assets, our scale and global reach offer clients
unrivaled access to markets, geographies and asset classes, and
allow us to deliver thoughtful insights and innovative
solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.4 trillion as of March 31,
2015. AUM reflects approx. $27.3B (as of 12/31/2014) with respect
to which State Street Global Markets, LLC (SSGM) serves as
marketing agent; SSGM and State Street Global Advisors are
affiliated.
About Benz Communications
Benz Communications is a marketing firm specializing in employee
benefits. The company creates strategic campaigns for employers
committed to nurturing high-performing and satisfied employees. Its
clients include Fortune 500 companies and Fortune 100 Best
Companies to Work For, as well as nonprofit and public firms. An
established thought leader in the benefits industry, the firm has
created a wealth of research and resources to help companies
educate employees about health and financial benefits.
State Street Global Advisors and Benz Communications are not
affiliated.
CORP-1471
Expires: 6-18-2016
1 SSGA Winter/Spring 2015 Bi-Annual DC Investor Survey. Data was
collected in January 2015 through a 20-minute Internet survey using
a panel of 1,009 verified 401(k), 403(b), 457(b) and profit-sharing
plan participants, aged 20 to 69, who are currently working at
least part-time.
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version on businesswire.com: http://www.businesswire.com/news/home/20150618005753/en/
State StreetElizabeth Powell,
1-202-468-0908powell@daicommunications.com
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