Providing access to financial planning can play an outsize role in employee wellness
By: Bill Zolis
I think the two questions I get asked most often when I sit down with clients to go over the benefits packages they provide for their employees are, “Do we have all the bases covered?” and “Are we getting the best bang for our buck?”
These are good questions that all benefits administrators ask themselves from time to time. It’s about balancing and prioritizing the benefits on offer with a view to making sure that both plan sponsors and plan members are getting maximum value from their benefits plans.
And here’s the thing: When we go over those plans, one item that we frequently identify as both a base that needs to be covered better and one in which we can get pretty good bang-for-the-buck is access to financial planning and counseling.
I see it as an opportunity to add significant value to the benefits plan, and I’ll tell you why. From what I’ve been hearing and reading on the subject, access to low-stress, professional financial counseling and planning has the potential to greatly improve not only the financial health of plan members, but also to significantly improve their wellness and quality of life.
I recently read a report of a survey of Canadian employees that found 95 percent of respondents identified financial health as a key component of overall well-being, and 90 percent said they felt their workplaces should be providing more support.
Yes, most employee assistance plans (EAPs) offer financial planning assistance to members. This is an important component of most plans and very useful.
However, 45 percent of respondents in the survey said that they had not accessed their EAP in the last six moths, and a further 40 percent said they had never accessed it at all.
I think that many employees – often the ones who would benefit most – either don’t think of going to their EAP or are reluctant to do so. For us to go the extra mile as plan sponsors, I think we first need to understand the barriers that some employees may face in reaching out and asking for assistance.
– One of the big barriers to financial planning for many people is the feeling that there is very little that can be done, and that anything they do won’t make much difference.
– Many people feel that their finances – and this usually involves their partners’ finances as well – are private and not something they want to discuss with anyone.
– People often feel that the only solution to their financial problems is to bring in more money and, if they don’t see an immediate solution, they feel trapped in a rut of living paycheque to paycheque.
– There is also the subtle but powerful barrier of anxiety about financial planning of any kind. People feel uncertain, and that they should be doing something, but are reluctant to even think about it.
So, whether we go through an existing EAP or through a separate financial planning initiative, I think the first thing we need to do is reach out to our plan members, rather than waiting for them to ask for help. In other words, we need to promote the services that are available.
To overcome the barriers that keep people from asking for help, we need to make it clear that professional financial planning assistance is not just for people who have run into difficulties, it’s for everyone.
We need to send the message that financial planning is what smart people do.
Our EAPs tend to focus on specific situations and problems faced by individual employees who reach out for help with a given problem. We need to make it clear that this kind of personal and confidential assistance is there for the asking.
In addition to this, we can broaden the appeal by offering services to everyone – resources, in-house sessions, seminars, lunch-and-learn, you name it – that address major topics. These are the topics that everyone can benefit from and that provide not only useful information that all employees can use in the long term, but they also provide the confidence that some may need in order to act in the short term.
There is a pretty wide range of topics that some of our clients have offered in the past and, of course, it’s always a good idea to ask employees for suggestions of topics they would like to see covered.
– Financial literacy.
– Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
– Creating a realistic budget.
– Debt management.
– Setting financial objectives.
– How to set and achieve savings goals.
– Using payroll deposit and automatic deductions to drive savings goals.
– Tax planning.
– Retirement planning.
– The path to home ownership.
– Prioritizing financial objectives.
We know from the surveys – and our own common sense – that financial pressures and anxiety play a big role in undermining our overall well-being. Now, sticking with a financial plan, however modest, will certainly improve our financial health.
But financial planning can go well beyond that by greatly reducing stress and anxiety right at the outset. The knowledge that we are doing something, that we have a plan, that we’re not missing out, and that we are headed in the right direction will build confidence, reduce stress and contribute substantially to our overall wellness.
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Proud to Contribute to the Future of Private Drug Plans in Canada!
See the full report here.
In May, I had the privilege of contributing once again to Benefits Canada’s Canadian Leadership Council on Drug Plan Partnerships. This annual event brought together industry thought leaders to discuss innovative solutions that ensure the sustainability and effectiveness of private drug plans in Canada.
It’s always inspiring to share insights and ideas with such a talented group of professionals. Together, we’re shaping the future of healthcare benefits in Canada, ensuring that these plans remain robust and accessible for all.
Looking forward to continued collaboration and innovation in this space!
#Healthcare #DrugPlans #Leadership #Innovation #BenefitsCanada
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I really appreciate comments, ideas, suggestions or just observations about the blog or any other topics in benefits management. I always look forward to hearing from readers. If there’s anything you want to share, please email me at bill@penmorebenefits.com.
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