Is your agency preparing employees for financial resilience?
Considering our changing economy, uncertain health and climate situation, federal agencies (as well as other employers) can and should do more to help their workers better prepare financially for both expected and unexpected events -- to be more economically resilient.
As part of an Excellence in Government Fellows Program, I worked with an interagency team to examine how federal agencies are building financial resilience, and what more could be done. The team and I interviewed experts at some of the government’s largest agencies to understand the financial challenges of their employees, what the agencies were doing to help their employees be more financially prepared, and what actions could help them do more. Here are some highlights of what we found:
Employers agree that financial resilience is important to employee’s overall well-being and their success in the organization. Agencies understand that they have a role in supporting financial resilience as part of work-life balance.
Leading agencies take a holistic approach to employee wellness. Some leading agencies support work-life balace and employee wellbeing that goes beyond providing standard benefits. For these agencies, supporting wellness is key to retaining employees, and supporting the agency’s mission.
Despite those positive perspectives, getting results can be challenging.
Employers find that employees’ financial stress is event driven. Many different events can drive financial crises and need for financial assistance. These can be specific to the employee, such as a health crisis, disability, or a change in household structure and/or systems of support (i.e., losing one’s childcare provider). Many of these situations are unpredictable, and so agencies may not be able to prepare and respond to employee needs. However, the COVID-19 National Public Health Emergency affected many employees directly and indirectly and raised awareness for the great need of financial preparedness.
Employees don’t use existing supports. Most agencies have an Employee Assistance Program (EAP) available to employees that can provide financial guidance, however, these services are not widely used. Employees may not be aware of them or may be concerned that using the EAP will reflect badly on them to their supervisor.
What can agencies do to help?
Nudge employees to take steps to build their own financial resilience. Agencies should communicate early and often, and use a variety of means. Effective approaches include offering information through different channels, including intranet sites, blogs, infographics, and fliers, and repeating messages so that they reach people. Agency experts also note that simple, targeted messages that focus on a brief how-to, checklist, or template, such as how to set up an emergency savings account, or how to increase retirement savings are most effective.
Agencies should also consider engaging leadership beyond benefits officers to help spread messages about financial resilience. Direct supervisors and agency leadership can communicate that financial preparedness is important, and help employees know where to go for assistance, even if they cannot provide direct help.
Agencies should know that there are many free and trustworthy resources available from federal agencies and reputable non-profit organizations to build financial resilience. For example: www.mymoney.gov includes information from many different federal agencies, https://www.ready.gov/financial-preparedness has information to take steps for emergency planning, and https://www.consumerfinance.gov/consumer-tools/ has information on many different financial questions and topics.