Did you know your employees are investors? Each and every day, they make countless investments — by choosing what to eat, who to spend time with, what to think about, etc. These choices have a major impact on their well being. Traditional investing can have a similar effect. When people invest their money wisely, they set the stage for a better quality of life, including more security in retirement.
As an employer, you know that today’s workplace is, well, not the workplace of yesteryear. With remote and hybrid work options and a new definition of “perks,” the focus is clearly on your people. This is a great thing, as studies show that happier humans make better employees. (As if we needed studies to prove what’s obvious, but it never hurts to show receipts, right.)
Speaking of perks, empowering employees to invest in their future is more than that — it’s a crucial component of a robust employee benefits program. As an employer, you can play a key role in helping your team achieve financial literacy and financial freedom. So, how can you set your workforce up for long-term success?
We’re about to break it down for you! With strategies to help your employees understand and navigate the world of investing, you’ll help them be their best, both professionally and personally.
Company culture should underscore financial wellness
Before you get into the nitty gritty of investment education, start by fostering a culture that prioritizes financial wellness. A comprehensive financial wellness program not only educates employees about budgeting and saving but also extends to more advanced topics like investing and retirement planning. Creating a supportive environment around personal finance ensures that employees feel comfortable exploring their investment options without fear or confusion.
- Host regular workshops and seminars that cover foundational investing concepts. Bring in financial experts to break down complex topics, such as stocks, bonds, mutual funds, and ETFs (exchange-traded funds), into simple, digestible terms.
- Promote open conversations about financial health. Whether through newsletters, internal communication channels, or even casual lunch-and-learn sessions, encourage ongoing discussions about investing. Reducing the stigma around talking about money will make it easier for employees to seek help and advice.
Offer access to financial education resources
Even if your employees are interested in investing, many may not know where to start. Providing access to educational resources can give them the foundation they need to make informed decisions.
- Encourage use of digital tools and apps that help employees manage their investments. Many platforms today offer easy-to-use apps for beginners, allowing them to monitor the market, track their portfolios, and make informed investment decisions on the go.
- Curate a list of trusted educational content, such as blogs, podcasts, and online courses that explain the basics of investing. This can be particularly useful for employees who may prefer learning at their own pace. Our SqwireLife platform is the perfect resource, providing user-friendly, self-paced lessons and financial education.
A gateway to investing: retirement packages
For many employees, a workplace retirement plan — such as a 401(k) or 403(b) — is the first real exposure they have to investing. This makes your company’s retirement plan an ideal, if not critical, starting point for supporting employees in building their investment skills.
- Offer employer match programs to incentivize participation in retirement savings plans. Not only does this help employees build a retirement nest egg, but it also reinforces the importance of long-term investing.
- Ensure your retirement plan offers a range of investment options, including different risk levels and asset classes. Employees at different stages of life will have different investment goals, so providing diverse choices allows them to tailor their portfolio to their individual needs.
- Educate employees on how to maximize their contributions. Many employees may not be aware of how employer matches work or the tax benefits of contributing to their retirement plan. Offering guidance on these topics can encourage higher participation and help employees feel more confident about their retirement prospects.
Encourage employee fellowship
Employees can be a great resource for each other when it comes to sharing investment insights. Encouraging a supportive environment for learning and collaboration around financial topics can lead to more confident, informed investors. Collaborative learning can reduce the intimidation factor associated with investing and build a sense of shared responsibility and growth within your workforce.
- Establish internal investment clubs or discussion groups where employees can share their experiences, strategies, and tips. These communities foster a collaborative environment and make investing seem less daunting.
- Host internal challenges or gamify investment goals. For example, you could run a company-wide “investment challenge” where employees compete to see who can achieve specific savings or investment milestones. Such initiatives make the process fun while still promoting financial growth.
Lead by example: Company-wide commitment to financial literacy
As an employer, one of the most important things you can do is a golden rule of human interaction: Show interest. When employees feel valued and seen, it builds trust and commitment.
- Encourage leadership participation in financial wellness programs. When senior leaders attend seminars, participate in challenges, or talk about their own investment journeys, it normalizes these conversations across the organization.
- Create company-wide financial wellness goals. For example, aim to have a certain percentage of employees contributing to their retirement plan or attending investment workshops each year. Publicly celebrating milestones and achievements will keep financial wellness at the forefront of your organizational priorities.
Setting your employees for success
Supporting your employees in their financial journey is an investment in the success of your company. Financially secure employees are less stressed, more focused, and better equipped to contribute positively to the workplace. By fostering a culture of financial literacy, offering educational resources, and providing opportunities for peer-to-peer support, you go the extra mile as an employer who cares — and it will reap powerful dividends for all.
Sqwire is on a mission to help people take control of their financial future. We partner with businesses, organizations, and solopreneurs to provide our SqwireLife platform to employees and customers. Let’s talk about how you can provide them with FREE access to 70+ lessons on personal finance topics, from insurance to investing to retirement and more!