January 23, 2020
15% of global benefits or global rewards leaders at multinational organizations report that they have a financial well-being strategy, although that is expected to increase to 60% in three years.1
Fig 1: Financial Well-being Programs Offered by U.S. Employers1
Early Access to Wages, Walmart:
Walmart is helping its associates avoid costly payday loans and overdraft fees by enabling them to access earned wages eight times a year free of charge. The program also gives employees the opportunity to put money into savings, estimates their monthly bills and calculates how much employees have available to spend before pay day.3
Student Loan Repayment, Fidelity Investments:
At Fidelity, eligible employees at manager level or below are eligible to receive $2,000 per year to help pay off their student loans, up to an employee maximum of $10,000 ($1,000/$5,000 for part-time associates regularly scheduled to work 20-29 hours). In addition, employees also have access to online tools to help manage debt.4
Incentives for Action, SunTrust:
SunTrust offers employees up to $1,000 a year to improve their financial well-being, including creating a “rainy day” fund. To earn the incentive, employees must complete an eight-part financial education course and take steps to improve their financial security like contributing at least $20 each pay period to an emergency savings account. So far, 80% of employees have taken advantage of the offering.5
Financial Security at Every Age, Colgate:
Colgate developed a financial wellness toolkit that’s available in seven languages. The toolkit focuses on three areas: creating wealth, managing wealth and enjoying wealth. The company’s financial education program aims to help Colgate employees learn to live within a budget, fund their children’s education, finance their homes and manage their debt.6
Fig. 2: Snapshots of Financial Well-being Initiatives Around the World1
Metrics to measure impact of financial well-being initiatives include:7,8
Employees are Seeking Organizational Support for their Financial Health
When asked how their employer can better support their well-being, U.S. employees prioritize financial health.9 Among all financial well-being programs and tools, U.S. employees place importance on the following:10
Globally, 85% of employees are interested in online tools to help manage their finances, and 79% trust their employer to give sound advice on financial planning, saving and investing.11
- 1 | Aon. Financial wellbeing – an employer point of view. July 2018. https://www.aon.com/getmedia/0ea709bd-182f-45df-9a5c-d6860f0daff5/Financial-Wellbeing-Study-Results-Events-July-2018-FINAL-DECK.aspx. Accessed November 4, 2019.
- 2 | National Business Group on Health and Fidelity Investments. Employer investments in employee well-being: tenth annual employer-sponsored health and well-being survey. April 2019. https://www.businessgrouphealth.org/resources/the-employer-investment-in-employee-well-being-tenth-annual-employer-sponsored-health. Accessed July 8, 2019.
- 3 | Corkery M. Walmart will let its 1.4 million workers take their pay before payday. The New York Times. December 2017https://www.nytimes.com/2017/12/13/business/walmart-workers-pay-advances.html. Accessed July 22, 2019.
- 4 | Fidelity Investments. Fidelity's student debt employer contribution program continues to be selected by leading businesses to attract and retain top talent. May 2018. https://www.fidelity.com/about-fidelity/employer-services/fidelitys-student-debt-employer-contribution-program. Accessed July 19, 2019.
- 5 | Tergesen A. Employers help workers build household-emergency funds. The Wall Street Journal. 2019. https://www.wsj.com/articles/employers-help-workers-build-household-emergency-funds-11560418206. Accessed July 5, 2019.
- 6 | Colgate-Palmolive. Our people: employee health and wellness. https://www.colgatepalmolive.com/en-us/core-values/sustainability/peopleAccessed November 7, 2019.
- 7 | Prudential Financial, Inc. Benefits and beyond: how employers think about financial wellness. 2018. https://www.prudential.com/wps/wcm/connect/f4d2bb4f-9734-45b9-91d0-f308c969e262/B-and-B_Exec_Summary_Flyer_rF2_DIG.pdf?MOD=AJPERES&CVID=myvagXT. Accessed July 5, 2019.
- 8 | Sammer J. 6 ways to measure the success of financial wellness efforts. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/measure-financial-wellness-success.aspx. Accessed June 27, 2019.
- 9 | 9. The National Business Group on Health and Optum. Workplace well-being and the employee experience survey. 2019. https://www.businessgrouphealth.org/resources/workplace-well-being-and-the-employee-experienceAccessed July, 1, 2019.
- 10 | Willis Towers Watson. 2017/2018 global benefits attitudes survey. 2017. https://www.willistowerswatson.com/en-US/insights/2017/11/2017-global-benefits-attitudes-survey-financial-well-being. . Accessed June 3, 2019.
- 11 | McGowan R. Healthy, wealthy and work-wise: the new imperatives for financial security. Global Business Group on Health Forum presentation. March 1, 2018. Accessed November 4, 2019.