Employer Financial Wellness Roadmap

• 54% of Mainers live paycheck-to-paycheck (of those, 36% break even and 18% spend more than their income).
• 45% of Mainers do not have a rainy-day fund.
• 34% of Mainers with credit cards paid only the minimum on their credit cards during some months in the last year.
• Only 40% of Mainers can correctly answer four or five questions on a basic five-question financial literacy quiz.

[Source]

• In 2019, 54% of FAME employees reported that they spent an average of between one and two hours per week, while at work, worrying about money, or dealing with money-related issues, while 14% indicated they spent three hours or more.
• Financial coaching sessions made available to employees revealed:
  • A significant number of employees did not have a will or estate plan, while others had plans that were outdated. Cost and lack of time were cited as substantial barriers.
  • Employees who were providing financial support to adult children and/or aging parents experienced ongoing stress.
  • There was an unexpected financial impact as a result of COVID-19. Several employees experienced a reduction in household income as a result of job loss among family members.
• While the current economic downturn presents many challenges for FAME employees and the entire state, we believe that the Financial Wellness Roadmap will provide a model to assist other employers to adapt similar programs to improve their employees’ financial well-being.

A financial coach is a trained professional who collaborates with and guides their clients to reach their financial goals. The process is personalized and nonjudgmental. Financial coaches provide support, encouragement, accountability, and tools to help people make informed decisions. [Source: CFPB]

FAME offered one-on-one workplace financial coaching sessions three times throughout the year.

Based on employee feedback, the following topics were offered:

Credit

• Credit Scores and Reports
• How and When to Freeze Credit
• Sandwich Generation
• Money Personality
• Estate Planning Essentials
• Reduce Credit and Debt
• Managing Debt

Spending and Saving Wisely

• Build Your Savings
• Physical Wellness and Financial Wellness

Investing

• Foundations of Investing

Retirement

• Planning for Retirement
• Social Security 101

Insurance

• Medicare 101
• Long-Term Care and Asset Protection

Financing College

• FAME

Home

• Value of Your Home

FAME provides employees and all Maine people with free access to Enrich, a proven digital financial wellness tool that improves financial behavior and decision-making. Enrich data shows that employees who participate in the financial wellness program experience positive financial behavior changes:

• 32% feel they are on track with their financial goals.
• 28% pay off their credit card balance each month.
• 27% created an emergency fund with three to six months of savings.
• 15% contributed to their retirement plan.
• 10% contributed enough to their 401(k) to get the employer match. [Source]

1. Assessment
   • Create an employee survey or conduct employee interviews or focus groups to determine employee needs.
   • Evaluate and understand the key causes of employee financial stress, including any gaps in financial knowledge.
2. Defining program goals and measures of success
   • Determine overall program goals and key milestones.
   • Create a program evaluation plan and metrics, such as workshop attendance, courses completed, financial coaching outcomes, etc.
   • Measure knowledge gain of participants and/or financial well-being both before and after program participation.
3. Scope
   • Select the size of your program. Will you serve the entire organization or offer programming to specific employee groups?
   • Ensure financial inclusion – consider target audiences such as people of color, women, and financially vulnerable populations.
   • Select educational delivery method(s). For example, online tutorials/courses, website tools, classroom and webinar presentations, and one-on-one coaching.
   • Determine program incentives.
4. Timeline
   • Determine the time frame and length of program, including frequency of workshops and coaching sessions.
   • Create a plan for onboarding new employees and determine eligibility for mid-year hires.
5. Resources
   • Secure endorsement from key leaders.
   • Identify program champion(s), project managers, presenters, coaches, and vendors.
   • Determine budget. Consider website enhancements, educational resources and tools, vendors, employee incentives, etc.
   • Determine educational tools to be offered, including employee benefits, educational materials, digital platforms, workshops, etc.
   • Consider developing a program agreement and policy for employees, including a disclosure statement that protects your organization from any financial decisions made by employees, such as any affiliations with presenters or outside experts.
   • Create a presenter policy that requires presenters to share educational information only and limits promotion or sale of specific products or services.
6. Marketing
   • Host an employee kickoff event.
   • Send a letter or email to employees from leadership and champions inviting them to participate in the program.
   • Create and deploy email blasts and reminders.
   • Consider using posters, decorations, novelties, and contests to promote engagement.

• Conduct an employee survey – what do they want to know more about?
• Incentives work ($250 and a savings match or additional tuition, financial products, etc.).
• Organizational influencers – win over the key employee peer leaders and they will be your best friends in promoting the financial wellness program.
• Top leadership – an endorsement of top leadership in the organization communicates the level of importance the program has to the organization. Participation should be perceived as an employee benefit, not a distraction from one’s job.
• Participate during a paid time – as an expectation, allowing employees to use work time to go through the program will result in the highest uptake and engagement.
• Allow for family and friends of employees to participate to encourage meaningful financial behavioral change.
• Provide financial coaching to help employees take the next personalized steps.

• Know the Population Served
  Financial education programs can be more effective if they are matched to people’s specific circumstances, challenges, and goals. Example: Start with an assessment tool, like the CFPB’s Financial Well-Being Scale.
• Deliver Actionable, Relevant, and Timely Information
  People are more likely to absorb information if it is connected to an upcoming decision that matters to them, at a time when they can put it to use, with concrete steps they can follow. Example: Provide first-time homebuyers with information they can use to guide them through the home loan process.
• Build Practical Financial Skills
  To put financial knowledge to use, consumers also need to build skills. Key skills include knowing when and how to find reliable information to make financial decisions, how to process the information, and how to follow through. Example: Give people simplified worksheets to help them comparison shop.
• Build on Existing Motivation
  Financial education can help people strengthen qualities and attitudes that allow them to stay motivated. You can help people focus on their own values rather than external influences, persevere in the face of obstacles, and build confidence that they can achieve their financial goals. Example: Set up a buddy system or financial coaching to help people stay on track.
• Make It Easy to Make Good Decisions and Follow Through
  The situations people encounter can strongly influence what they actually do. You can help people follow through on their intentions by working with the influences or forces at play within their surroundings. Example: Help people set up automatic transactions that support specific goals.