6 Financial Wellness Tips Brokers Can Provide Employers

Quick look: Financial wellness continues to be a growing concern, and personal finance issues can negatively impact employee productivity and mental health. Many employers are now taking action to help employees improve their financial wellness, and brokers can play an important role by providing clients with resources to manage payroll options, retirement plans, employee benefits, financial trainings, and more.

Did you know that worldwide, just one-third of adults understand simple financial concepts? In the U.S. alone, 4 in 7 struggle to understand their own personal finances, and only 24% of millennials understand basic financial topics. These statistics are staggering, but as a broker, there are several ways you can help.

Across industries, worksite employees look to their human resources departments for financial wellness tips. And as the role of a broker becomes more consultative, clients will look to their advisers to provide recommendations on issues outside of health insurance and employee benefits.

As a PEO broker, you can boost your brand as a trusted adviser and add even more value by providing your clients with financial wellness program initiatives, such as employee assistance programs (EAPs) and other voluntary benefits, to meet the demand of what drives employees today.

Why Financial Literacy?

Financial literacy is truly a win-win. According to the Financial Wellness at Work report by the Consumer Financial Protection Bureau, many employers feel that educating employees on financial wellness will reduce turnover and build loyalty. Today’s job market is an employee’s market, and employee retention likely tops your clients’ priority lists. By providing the tools and services needed to teach financial literacy, you can help clients recruit and retain top talent, help shape a positive company culture, and future-proof your book of business.

6 Financial Wellness Tips for Your Clients

As a broker, you know that providing tailored options for your clients is important and partnering with a professional employer organization (PEO) can help. Here are six ways to leverage the expertise at your PEO company to help boost the financial literacy of your clients’ employees.

1. Provide an easy-to-use payroll platform.

Knowledge is power, and providing clients with a simple, intuitive payroll platform can empower employees. An ideal platform should provide clear insight into earnings and make it easy for workers to access paystubs and confirm that their taxes and other deductions are correct. No one wants a surprise bill come tax season.

2. Start educating on day one.

The best financial wellness training starts right away. When new hires join your client’s business, encourage their human resources department, or their PEO, to provide clear insight on payroll, benefits, savings, and educational options.

3. Offer fiscally responsible benefits.

There is a myriad of benefits employers can offer workers to give their finances a boost. Relevant benefits include retirement plans, 401(k) and other savings plans, stock options, health savings accounts, student loan repayment programs, education saving programs, and more. Partnering with a PEO company, like ExtensisHR, allows brokers to offer these Fortune 500-level benefits to small- and medium-sized businesses (SMB) clients.

4. Proactively avoid crises.

Encourage your clients to help employees stay a step ahead by providing training on how to secure their personal information to avoid identity theft and financial fraud. Employees can also utilize simple budgeting tools to identify any unhealthy spending habits and avoid overspending.

5. Be inclusive.

According to the Federal Reserve, 22% of U.S. adults are unbanked (meaning they have no bank account at all) or underbanked (meaning they have a bank account but rely on alternative financial services like payday loans). Clients should keep these employees in mind and offer helpful solutions like the option to receive pay via a prepaid account and debit card. Helping workers set up savings accounts and providing access to a money management mobile app are also great ideas to share with clients.

6. Provide guidance.

Just as you are your clients’ trusted advisor, encourage them to be their employees’ trusted advisor, too. Employers can provide basic financial literacy tips on a per-employee basis, and quick, regular training on identity protection and financial wellness. Furthermore, employers that partner with a PEO can offer complementary benefits like an Employee Assistance Program that provides confidential advice, support, and resources regarding important matters like getting out of debt (and much more).

Your PEO is Here to Save the Day

Many SMBs are missing out on the advantages afforded to their larger competitors. This is where working with a PEO, or HR outsourcing partner, like ExtensisHR, can change everything. In the co-employment relationship, businesses fold under the PEO’s large group, enabling many SMBs to offer the above and more, including intuitive online tools to give employees a constant, direct look into their finances as well as experts dedicated to helping workers navigate taxes and retirement savings.

By combining technology with expertise, we empower business leaders and their employees to take control of their finances through comprehensive HR solutions, including:

• HRCloud Anywhere®: An online platform and mobile app providing at-a-glance payroll, tax, and 401(k) information – and much more.
• Knowledge & Learning Cloud: A web-based platform hosting on-demand trainings on various topics.
• Fortune 500-level benefits: Including 401(k), an Employee Assistance Program, a student loan repayment plan, and more.
• Employee Solution Center: A team dedicated to guiding employees through questions regarding payroll, taxes, benefits, and more.

Ready to help make financial wellness make more cents? Connect with our experts to learn how we can provide the benefits, services, and tools you – and your clients – need to succeed.