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Two of my favorite topics – personal finance and HR. When I got the idea to write this post, I had
second thoughts because I wondered if anyone would really care. Then, the more I thought about it, I realized
that if they don’t, I believe they should.
I've been fortunate to work in a company that did wellness
as well or better than I've ever seen or heard of elsewhere. There was a free on-site gym and personal
trainer for all staff. A fit point
program was put in place that could earn employees up to $75 per quarter just
for engaging in healthy behavior.
On-site yoga, Pilates, and dance classes were offered in addition to boot
camp twice per week. Fresh fruit and
smoothies were always available in the gym for staff wanting a healthy
snack. You could even wear work-out
clothes to work if you used the gym that day!
The trainer walked throughout the offices during the day motivating
people to make healthy choices, and it really helped having a cheerleader
always there to push. In addition to
typical screenings and everything offered by other robust wellness programs,
other programs like Weight Watchers were available, smoking cessation classes
which paid you $1000 for staying smoke-free up to a year and an on-site massage
therapist. We even had a chicken coop on
the company campus to provide fresh eggs for breakfast. It may seem a little over the top, but it was
very cost effective for the organization.
What does this have to do with finance? Well, I’m lucky to have worked in companies
(that organization included) where people are well paid, particularly anyone in
a pay-for-performance role, like sales. I
say I’m fortunate because we all know people who have suffered unemployment or
underemployment over the last 5 years. Yet,
I hear complaints about how tight money is for people, or why the high
deductible health plan is breaking the bank for staff. I find it puzzling, because of the complaints
are from employees making six figures.
What this tells me is that they are spread thin, and highly
leveraged. They make good money, but are
they financially healthy? Webster’s
defines “wellness” as the quality or state of being healthy in body and mind. What is one of the number one factors
contributing to marriage problems, stress, and anxiety in America? Money problems. If you think employees are leaving all that
at the door, you are unfortunately living in a fantasy.
This is a minor tangent, but you’ll see the tie in – I
promise. Generation Y is the most in
debt generation in American history. I’m
no exception. I haven’t always made the
most intelligent decisions with my money, and I made the questionable decision
to acquire a mountain of student loan debt to get a graduate degree. I’m pretty normal. And if I chose to stay on a normal path, I
would keep my student loan debt around for at least 20 years, over-extend
myself on a home and car purchase, max out my credit cards in the name of
instant gratification and take expensive vacations just so I can post the pictures
on Facebook to maintain the perception that I've done pretty well in life. If you think about this for a moment, the
truth of it should frighten you a little.
Now for the argument as to whether finances can be
considered part of the fad of “wellness”.
Well, I’m typically a pretty scientific person, but I recently asked
employees who came to see me about other issues in our company to tell me what
is on their mind. I know this experiment
lacks validity, but work with me. What
do they think about the most at work that is unrelated to their job. I asked 6 employees. Here are their responses:
- My mother’s declining health and mental condition – she has trouble taking care of herself.
- Our dream home we purchased six years ago is severely under water, and we want to move to a new school district for when our children start school this fall.
- Our furnace went out this month and needed replacement and we also had a dishwasher that needed some parts replaced. Last year, we had to replace our AC unit and a portion of our roof. Our insurance just skyrocketed and the fiscal cliff shrunk our paychecks. January has been tough.
- My wife is overworked and burning out – she didn't get home yesterday until after 3am working on a deal that came in. It makes her stressed and emotional.
- My husband was laid off 3 months ago and is still unable to find a replacement position. He took a food service job for the short term.
- My child was just diagnosed with scoliosis and the resolution is a complicated surgery that will require extensive physical therapy afterwards.
Employee problems are all over the board, and I’m sure the
same would be true in your organization.
However, nearly all of them are related to personal finance in some
manner. An elderly parent with declining
health is not only sad, but it’s expensive!
Underwater homes are commonplace now, and financially detrimental to
millions of Americans. We all have peaks
and valleys financially. I guarantee you
that one of your employees is in a valley at any one point in time. Overworked and over-stressed are commonplace. Some do it because they love to work; others
do it because they need the money.
Layoffs are also pretty common now – you may even be desensitized to
them. Ill children, especially those
requiring medical procedures are tragic, but they can also break the bank. A major surgery plus ongoing physical therapy
will hit any family hard, even if you do have insurance.
The concept of being financially “well” is not new – I bet
your grandmother could teach you a thing or two. Much of it is common sense, which is
unfortunately not so common any longer.
While some argue that it is the job of parents or the public school
systems to teach people to manage their money in a responsible and healthy
manner, the effects of not doing so fall on employers when our children become
working adults. What’s even more
unfortunate is that managing money well is more about behavior than knowledge,
meaning that bad habits are harder to break in adults. However, giving employees the knowledge,
tools and resources to improve their financial futures will bring peace to the
lives of those interested in making a change (which is probably more people
than you think).
There are several organizations that can help provide and
build programs for your organization around financial wellness. I've also seen a couple organizations build
the programs themselves. Whatever route
you choose, your program should include a few basic principles.
- Budgeting
- Reducing/eliminating debt
- Saving (in an emergency fund or elsewhere)
- Retirement planning
The need for such programs is staggering. MetLife’s annual report said that 78% of
employers agree that financial problems render employees distracted
and less productive. 69% acknowledged that financial stress contributes to
health costs; 58% admitted that financial “illness” contributes to employee
absence. 81% of employees who
admit that they are financially stressed want help and would definitely be
interested in financial advice and guidance.
The most common financial problems cited by workers are credit card
debt, student loan debt, and too much house.
It has been reliably calculated that lost productivity due to
stress-induced absence, tardiness or inattention can cost companies as much as
$7,000 per worker per year.
I think you get the picture.
HR – it’s time to make a difference for your organization and
in the lives of your staff. Now, get to
work!
