Why Employers Should Care About Employee Personal Finances

Worrying about money is a joy-stealer - and it's a time and focus stealer. Employees with worries or concerns about money are not 100% focused on their jobs while they're at work.

Money isn't bad or good, it just is. But we supercharge the topic with our scripts from our upbringing or our experience as adults - our core beliefs about how to acquire wealth - and how deserving we are of wealth.

In fact, a 2021 Vanguard study indicated that women have a median 401(k) account balance of about $10,000 less than that of men. Instead of being a life-enhancer, money becomes a distraction and annoyance.

What are your employees worried about financially? The lack of clarity is the enemy of peace.

Questions employees should be asking themselves:

• Are they investing enough?

• Is what they're investing being invested wisely?

• Is their portfolio optimized?

• What's their retirement or financial independence #?

• Can they stop worrying and find mental ease because they realize their goals are achievable?

As an employer, what can you do to help?

• Bring in outside education

• Provide free consults with outside financial advisors

• Offer investment management oversight as part of your retirement plan benefits

• Provide online budget and retirement calculators

• Do a refresher presentation on your retirement plan benefits every year

If employees spend less time worrying about money, chances are much higher than their time, attention and focus will be on their jobs while they’re at work…. a true win-win for everyone involved.