By Ray Birch
LOWELL, Mass.—One credit union says while physical fitness centers can be found across the country, no financial wellness “gyms” have emerged to keep Americans in sound financial shape—so it has introduced one of its own.
Workers Credit Union has launched what it calls a new type of financial wellness center—PlanIt—contending financial fitness can have the same effects on an individual’s physical wellbeing as working out in a gym.
“While many companies offer health insurance plans with incentives for employees who join a gym or start a new diet, most don’t give their employees’ financial wellness the same consideration as their physical health. But they should,” said Johan Romero Luna, the CU’s VP of branch administration.
Luna said the $2.2-billion Workers Credit Union is “ahead of the curve” on the next frontier of employee benefits—and adding value to credit union membership—by offering the new financial wellness coaching. The CU’s program allows Massachusetts employers within the CU’s FOM free access to financial coaches they can offer as a benefit.
About the ‘Chains’
“This is not somebody who comes in and teaches you how to balance a checkbook,” explained Luna. “It's about talking about your chains. Chains are things that are holding you back from your financial dreams—what is it you want from your life, what's keeping you awake at night. This program teaches you how to tackle those issues, step out of the nightmare, and then get back to focusing on your dreams.”
Luna emphasized the program also helps people overcome the “shame and stigma” that people who get into financial trouble often feel and gets them past that hurdles and talking to a counselor.
Luna pointed out the American Psychological Association’s annual surveys consitstently find the biggest cause of stress is money, with physical health ranking number four.
“However, in 2007 the nation had 18,000 gyms and today there are 40,000,” he said.
Luna noted data show financial stress costs employers $4.7 billion per week.
20% of Workers Feeling Pain
According to a recent Bright Plan survey of 1,500 workers, a fifth of workers said their financial health has worsened during the pandemic and 46% have had lower productivity as a result. All of that is coming as the pandemic has made quality workers harder for employers to find, with the Bureau of Labor Statistics reporting 4.3 million people quit their jobs in August of 2021, familiar to many as the “Great Resignation.”
According to Prudential’s Pulse of the American Worker survey conducted one year into the pandemic, a quarter of workers plan to look for a different job once the threat of the pandemic has decreased.
“This is significant, considering it costs companies 33% of a worker’s annual salary to replace them if they leave,” Luna said.
Luna explained Workers Credit Union’s program goes well beyond the financial literacy information and webinars some employers offer their workers.
“Trained financial coaches meet with employees one on one, to listen without judging, to answer questions, and to provide the tools and support that empower people to make good decisions, no matter what stage of life they may be in,” he said. “Having regular meetings keeps the employee encouraged and motivated to follow their path to financial wellness.”
Benefits to Employers
There are several benefits to the employer, as well, according to Luna.
“The program is free. The biggest benefit, though, is productivity,” he said, citing a MetLife Employee Benefit Trends study that found people who are less worried about their personal finances are more productive.
“In fact, 85% of financially healthy workers reported feeling more productive at work,” Luna said. “Employees can be more fully dedicated to their job if their mind is not distracted by concerns about where they will get the money to meet their monthly bills or pay for those new tires they need before winter.
“Offering this program also promotes retention and can be used as a recruitment tool,” he continued. “Providing a benefit that other companies don’t attracts prospective employees, encourages existing employees to stay in their jobs and creates better engagement between employers and their workforce. It shows employees that the company they work for cares about their financial wellbeing and wants to work with them to contribute to their success.”
Luna contends financial fitness is the next “value-added” service for credit unions.
“We have been hearing for 20 years that money is the biggest cause of stress and we're not responding to the situation,” said Luna. “Yes, financial institutions focus on speed and expedience versus value. We have to come to grips with the fact we can't compete anymore just on service. You have to compete on value. That is what we are doing now here at Workers.”
How Program Works
If an employer is interested in taking advantage of the free offering, a team from Workers visits the organization and introduces the program to its employees. Employees who want to take advantage of the program are matched with a coach, who they meet with one-on-one at any of Workers’ 17 locations or virtually.
Those who choose to meet at one of four new PlanIt locations, will be greeted and checked-in by a hologram concierge and can interact with a humanoid robot during their visit. SEG employees who choose not to meet with a coach can also benefit from a variety of workshops and seminars offered at the employer’s worksite.
A PlanIt session generally runs from 30 minutes to an hour. After the member feels comfortable, sessions can be held via phone, Luna said. The financial coaches also reach out via email and text. Four meetings generally produce the best results, Luna added.
“If credit unions are going to thrive, we have to add value beyond product,” said Luna.
Helping Up to 6,000 Annually
Luna contends the benefit helps companies attract and retain workers in a time when employees are looking hard at what companies offer in addition to salary. Luna said several companies are already offering the recently introduced financial coaching benefit, with 50-60 employees per location showing interest. Luna said Workers hopes to eventually help 6,000 employees annually.
“Financial pressures—they’re very much on people's minds,” Luna said. “There is a lot of shame people feel from financial problems. And they don’t know where to turn. Workers is turning that around.”