At SpringFour we have long been advocates of employers taking part in employee financial health. When employees feel a greater sense of financial security, they are far more productive and loyal to their employer. It is no secret that over 40% of Americans don’t have enough saved to cover a $400 emergency expense, and most of those who don’t have enough savings are employed. Employers should take an active role in supporting the financial wellness of their employees and offering benefits and resources to assist their employees in saving and planning. Not only will they help their employees, but also their bottom line.
Sasha Orloff, CEO of LendUp, a SpringFour subscriber, recently wrote an op-ed for Forbes on Why Employers Need To Help Workers Deal With Income Volatility. He discusses the Finance Forward series of events that LendUp and the Aspen Institute Financial Security Program are currently conducting to elevate this issue and define actionable solutions. Employers have a number of tools they can call upon to help their employees address this volatility, and solutions that can range from smoothing out workers’ paychecks, to enrolling employees in savings accounts.
Sasha also specifically mentions employers looking to financial services companies, such as SpringFour, to help their employees find valuable resources for creating financial stability. LendUp has seen the benefits of partnering with SpringFour to bring financial health resources to their customers, seeing increased repayment rates and brand loyalty. These financial wellness results garnered through SpringFour can help employees as well. As the gig economy continues to grow, income volatility will continue to grow as well. “It is in employers’ best interest to help workers cope effectively.”
We are so glad to see this issue being addressed at a national level, and are excited to be part of the solution. The Center for Financial Services Innovation has also done research on this topic, pointing to robust employee financial health programs that improve their bottom line, promote employee loyalty and satisfaction, and serve as a unique benefit when hiring. As these conversations continue, one thing is for certain; we must all care about the financial well being of employees and how to assist those who are the most vulnerable in getting on the path to financial security and savings.
Katie Gottschall Donohue, Vice President, Strategy and Operations