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The Rising Impact of Financial Wellness

Financial Wellness Creates a New HR Technology Opportunity - Meet Kashable

 
Jameson Fauver, Vice President of Business Development for Kashable -TotalPicture interview with Peter ClaytonJameson Fauver

The problem with financial wellness in the United States is surprisingly large:

- 76 percent of American workers live paycheck to paycheck.

- 63 percent of Americans can't access $500 for an emergency expense.

When emergencies hit, most employees have limited access to credit because traditional banks do not offer unsecured loans to consumers. As a result, employees generally turn to high-interest credit cards, loans against their retirement plans, pawn shops or payday lenders.

None of these options provide good choices for employees and the financial stress that comes with them impacts both wellness and productivity. This is not limited to low-wage workers.

Welcome to a HR Technology Channel podcast on TotalPicture, I'm your host Peter Clayton. Today we're going to focus on financial wellness, and why every employer needs to pay attention. Do you have employees paying off college loans? Probably.

Financial Wellness has become a hot topic and concern for many forward-thinking companies. Financial stress does impact employees' performance, productivity, and engagement. Last year, at a Future Workplace Member Meeting at Suntrust in Atlanta, Margaret Callihan, CHRO of SunTrust talked about Suntrust being a Purpose Driven Company and how financial wellbeing is now part of the DNA of that organization -- and for good reason.

According to a 2018 PwC Employee Wellness survey, Forty-two percent of employees say it's likely they'll need to use money held in retirement plans for expenses other than retirement, and that number is even higher among employees who are stressed about their finances or impacted by student loans. According to PwC, 64 percent of employees are impacted by student loans.

With statistics like these, it's not surprising that many employers have started to take action regarding financial wellness. In fact, according to the PwC survey, Employees want help with their finances. More than half of all employees want to make their own financial decisions but are looking to have someone validate that decision. Employees want a financial wellness benefit with access to unbiased counselors and help understanding and using their benefits. (I'll put a link to pwc's survey in the show notes of this podcast).

A 2018 report by the Consumer Financial Protection Bureau, states: "financial wellness benefits can return from $1 to $3 for every dollar invested. That's because personal financial stresses impact the workplace as employees wrestle with payment deadlines, overdue bills and mortgage refinancing."

In fact, The CFPB report found that financial concerns were the most common cause of stress for seven of ten workers.

Back to PwC, employees' top rated financial concern is having too little saved for unexpected expenses. That makes perfect sense given that a Bankrate survey found that 63% of Americans can't access $500 for an emergency expense.

This is a huge problem. Obviously. In response to this, a number of new companies in the HR Tech Space have started to address the financial wellness issue with innovative products and solutions. One of those is with us today. Kashable. Joining me is Jameson Fauver, the Vice President of Business Development for Kashable, where he is responsible for leading the national sales team and growing Kashable's employer client base.

Peter Clayton

About Peter Clayton

Peter Clayton, Producer/Host, is an award-winning producer/director of radio, television, documentary, video, interactive and Web-based media who has created breakthrough media for a wide array of Fortune 100 clients.

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