Financial wellness programs are a benefit many employees value. If your organization is looking to implement this type of offering, it’s wise to tailor them to suit the personalities of the workforce.
PwC reports that 54 percent of professionals are stressed about their finances, and 42 percent say it’s likely they’ll have to access retirement savings to cover expenses other than retirement. Helping employees become financially healthy can improve workplace productivity as well as overall employee health and wellness.
The 6 Financial Personality Types
According to PwC’s 2018 financial wellness survey of 1,600 workers, not all employees have the same financial personalities. The survey found six distinct financial personality types, including:
- Risk haters
Each personality has its own attitude toward money, which heavily influences employee perception of financial wellness and retirement planning. Knowing more about money-related personalities can help employers tailor workplace financial wellness programs to meet all employees’ needs, so each can reap the benefits of financial stability and lower stress associated with it. Here’s a breakdown of the six financial personalities.
Savers tend to look for the best deals and are interested in learning new ways to stretch their paychecks. They love using coupons, may spend money with some hesitation and hate paying full price for products and services.
Givers donate to those in need and help others out financially whenever possible. They often donate their time in addition to their finances.
Spenders typically have trouble saving, as they often spend money as soon as payday arrives. These employees may spend more money than they should or live above their means. However, they might be generous when it comes to donating money to a good cause.
4. Risk Haters
Risk haters prefer safe investments and love planning and researching before making financial decisions. They may forego opportunities for investment growth due to concerns about risk, and instead prioritize financial stability.
Hands-off financial personalities often turn over their finances—especially investments—to an adviser so they can be “hands off” when it comes to their money. These employees avoid spending time researching or checking up on their finances because they’re content having a professional take on this task for them.
The gambler personality type is pretty self-explanatory. Gamblers love taking financial risks with the chance of a big payoff. Gamblers can become very wealthy if their risk pays off, but they are also in jeopardy of losing big.
Tailoring Financial Wellness Programs
While the basic structure of on-site financial education programs should remain constant, the delivery method will vary based on each employee’s financial personality. It’s best to use a non-judgmental style when delivering these messages, noting that one financial personality type isn’t superior to another. It’s a good idea to help employees determine which personality best matches how they usually manage money.
You should try to tailor individual financial wellness plans as much as possible based on an employee’s financial personality, how they currently manage money and their financial situation. For example, savers may find it easier to save or invest money, and probably have a larger retirement savings account than spenders. Keep in mind that even the most responsible employees likely have areas of their financial health that can be improved.
Helping Employees Achieve Financial Freedom
Ultimately, designing financial wellness programs to help every employee achieve financial freedom can be a big benefit to your organization. According to PwC, this means employees can enjoy “freedom from stress and financial worry, and being able to make choices to enjoy life.” Financial freedom resulting from a financial wellness program is a perk that staff might not think about as a workplace benefit but will appreciate tremendously.
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