Financial coaching has become a staple in many employee financial wellbeing strategies, with nearly half of employers surveyed by EBRI saying they offer it. Yet many employers don’t recognize that this model is only suited for a small fraction of their workforce – the 30% of employees who are financially healthy. Keep reading to learn why and what type of support the majority of your employees really need in order to improve their financial health.
Why financial coaching can’t support financially vulnerable employees
1. No immediate problem solving
A typical financial coaching benefit usually offers one-on-one sessions with a coach, financial education resources, goal-setting, basic budgeting support, and future-focused conversations. Given that immediate problem-solving isn’t the main focus, this inherently requires that employees don’t have urgent financial needs that require immediate attention and resources.
Likewise, a typical financial coaching model demands that employees have the time, motivation, and financial stability to schedule and conduct a meeting that won’t improve their financial situation right away.
2. The responsibility to act often falls on the employee
Most traditional financial coaching models leave it up to the employee to act on the plan developed with the help of their financial coach and in many cases, form new financial habits.
Unfortunately, with 70% of employees living paycheck to paycheck, most of your workforce is struggling with everyday money problems and the weight of financial stress. Research has proven that there is a strong correlation between financial stress and mental health, including that it can impair a person’s ability to make sound financial decisions or take action. To overcome these barriers, many employees need empathic support and a trusted partner who will help them do the legwork.
Simply put, an employee who is experiencing a money emergency, eviction, food insecurity, or lacking safe transportation to get to and from work is in a very different headspace than a person who is ready to get serious about budgeting or finding ways to make the most of their retirement contributions.
3. Not all financial coaching is unbiased
Some financial coaching services may involve biased business models that present conflicts of interest, particularly when the coach works for a financial institution or provider who incentivizes recommending specific products.
While this model may be intended to provide a streamlined experience, it may not always result in presenting employees with all available options that are in their best financial interest.
What sets Brightside Financial Care apart
Brightside Financial Care is the only financial benefit designed to treat financial illness, which requires more than any traditional employee financial wellness benefit or point solution can deliver. Brightside Financial Assistants are empathetic and non-judgmental partners who meet employees where they are to help them find resources and real solutions that will improve their financial situation and financial health.
As CNN reports, some Brightside Financial Assistants are certified financial planners, some are financial coaches, and some are also social workers and experts in disciplines such as debt and credit counseling.
Regardless, they are all trained in behavioral science to understand where an employee might need additional encouragement or help taking action because of barriers, which may include mental health issues, domestic abuse, or extreme emotional challenges. Brightside Financial Assistants also apply the principles of hope science to help employees build hope that they have the power to set and achieve goals that matter to them.
Financial Care doesn’t just address what’s happening in a person’s financial future – it offers real solutions and support for what’s happening right now.
How Brightside Financial Assistants do more than coach or advise
- They connect employees with emergency resources and free assistance programs whenever possible.
- They provide access to carefully vetted tools employees cannot access on their own, including safe, paycheck-linked loans that consider loan approval decisions on more than an employee’s credit score.
- They help employees access debt management solutions to reduce debt faster, save money on interest, find more affordable monthly payments, and even handle past-due debt.
- They help employees apply for and navigate employer-sponsored grants and hardship funds when relevant, as well as other employer benefits.
- They help employees find ways to start to build emergency savings, improve credit scores, and adapt to the financial impacts of life changes like divorce or loss of a loved one.
Importantly, Financial Assistants never sell products or profit from the decisions or actions a Brightside user does or doesn’t choose to take.
Real support for real challenges
Financial coaching can be a good fit for financially stable employees, but with 70% of the workforce considered not financially healthy, it’s more likely that most of your employees are facing challenges that require more support.
Learn how Brightside Financial Care goes beyond coaching by delivering comprehensive, action-oriented, and empathetic support.
