An increasing number of businesses are bringing in a 3(21) fiduciary to act in an advisory role as employees choose the best retirement investment for their hard-earned dollars. Unfortunately, not every business can afford these trained professionals, which leaves HR personnel to serve in the role.
Not all HR representatives have the specialized training to advise employees. However, over time, they find themselves in the valuable role of knowing more about their workforce’s financial situation than anyone else in the company. Here are a few ways HR teams can benefit from paying attention to the financial concerns of employees.
Invested Businesses Engage Employees
Health and wellness programs have become popular in recent years as businesses realize the cost savings that can come from keeping their workers healthy. However, financial wellness can bring similar benefits to a company since employees will help manage stress that will allow them to focus on their work.
By taking an interest in helping their employees, businesses have also found that they’re able to increase productivity because employees are more personally invested in the work they’re doing. This can include helping them get control of their student loan debt, setting up an automatic payroll deduction that creates a savings account, or working with them to find the ideal retirement savings plan.
Wellness Programs Are a Perk
Winning over top talent can be difficult, especially for companies trying to hire workers with specialized skills. Perks can make a big difference, especially for businesses that can’t afford to top the salaries offered by the competition. For example, with health and wellness programs, workplace-sponsored financial wellness initiatives demonstrate an investment in the employee’s future. It’s important to sell this perk during the hiring process and have a plan in place to work directly with each employee once they’re hired. It may be necessary to bring in a financial advisor to help create a plan for your financial wellness program to ensure it is as effective as possible.
Workplace wellness programs are becoming more popular, but it’s important that a business offer high-quality help. By listening to workers and possibly bringing in a 3(21) fiduciary to offer professional advice, companies can win and retain top-quality employees.
FiduciaryFirst is a Maitland, Florida based company that provides independent retirement plan fiduciary support with a holistic approach. Our comprehensive Prudent Fiduciary ProcessSM (PFP) enables employer groups to address fiduciary standards. For more information about pension consulting call us at 866-625-4611 or contact us online.
Tracking Number: 1-666783
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.