Don’t forget your employees! A comprehensive approach to your financial wellness action plan
As credit unions enhance their commitment to the financial wellness of their members and communities, many have realized through employee financial wellness surveys that their own staff also require significant support. Like their members, credit union employees face similar financial challenges.
Fidelity’s recent “Plan Sponsor Attitudes Survey” highlights the budgeting and saving difficulties that families encounter, affecting their ability to manage both immediate needs—such as unexpected emergencies—and long-term goals like retirement and investing.
These families include your employees. Financial institution staff are particularly susceptible to feelings of guilt and shame about their financial situations, especially since they provide financial advice to others. This can discourage them from seeking the support they need.
As a credit union, you have a unique opportunity to help bridge the gap between short-term relief and long-term financial stability for your employees. This involves more than just providing financial education. It requires a thorough review of your current employee benefits to ensure they genuinely address employees’ needs and help them achieve their financial goals.
Before employees can build a rainy day fund or contribute to a 401(k), they need to address immediate financial hardships that strain their budgets. These hardships often lead to a cycle of high-interest debt, payroll advances, 401(k) withdrawals, or payday loans.
Instead of relying solely on small emergency grants—which, while helpful, are often only temporary fixes—consider implementing 0% interest loans with extended repayment terms. This approach allows employees to receive more substantial assistance upfront and repay it with dignity. When combined with financial education, this strategy provides both short-term relief and long-term benefits, offering a sustainable solution for your budget.
This method goes beyond a simple raise or annual bonus; it addresses employees’ immediate financial needs and helps them improve their financial well-being right away.
To learn more about the advantages of 0% interest loans or to discuss how other Credit Unions are implementing this approach, contact Courtney Lussenhop, Director of Impact at The Community Impact Fund today.
About The Community Impact Fund (CIF)
The Community Impact Fund (CIF) is an independent 501(c)3 non-profit established in 2018 to help organizations maximize their community impact by helping to meet the financial needs of their employees, members, and community through Impact Loans and financial education.
