Have you contemplated a job move recently? Had a hard time finding an employee?
You’re not alone.
Nearly every American worker has considered leaving their job this summer, according to a survey conducted by Monster.com in June. A staggering 95% of survey respondents were considering changing jobs and 92% said they would even switch industries for a change. Of course, considering and quitting are two different things, but “quits data,” reported in the Job Openings and Labor Turnover Survey, or JOLTS, suggest many workers are going through with their plans. As of June 30, the quits rate increased to 3.9 million, up by more than 1 million compared to August 2020, and up by nearly half a million compared to August 2019.
Overall, job openings soared to a record 10.1 million this summer, leaving employers understaffed and more than a little stymied.
The Great Employer/Employee Mismatch
Of course, our team thinks a sound financial plan is the answer to living the best life. We also think employer-provided financial planning is a good way to bridge the current employee/employer gap.
Why are workers leaving? Mental stress and burnout top the list, followed by work-life balance as another leading driver of career jumps.
While an employer-provided financial plan may not help with burnout, our 360-degree planning process is designed specifically to achieve a sense of work-life balance. We teach our clients how to use their money to have the lives they want. Yet, most of us have lived in just the opposite manner – letting how we make our money run our lives.
The pandemic forced us to think more deeply about work and family, where we work and when, and to reexamine our priorities. When we all took a step back, some realized that their jobs were not supporting their life goals.
Winning Together: The Three C’s
As employers struggle for ways to attract employees, we have to find ways to meet employees where they are. Supporting their life goals is a great place to start.
For example, Chipotle rolled out a short, clear path to management as a recruitment tool this summer. But that might have been creating a life goal FOR the employee, which could ultimately lead to burnout. Other employers offer flexible schedules, continuing hybrid or remote environments, signing bonuses or higher wages.
We suggest adding financial planning services to this list of outside-the-norm incentives and benefits. Here’s why:
- Customized financial planning helps employees see how a role with your firm could serve their life goals, especially for those who have never before consulted a professional about their financial wellbeing.
- Catalyzing your employees’ aspirations gives them a voice in their career trajectory and likely keeps them loyal to your company — of great import when competition is at its peak.
- Catering to younger generations’ desires is key to long-term workforce planning – and Gen Xers and millennials want financial planning. According to Ben Harrison, head of advisor solutions for BNY Mellon Pershing, the pandemic created concerns about retirement and lifetime earning potential that drove an unprecedented interest in financial markets and advice. Harrison notes that the spike was particularly dramatic among young, first-time investors and millennials, now reaching their 40’s and faced with critical life decisions.
Taking the leap
In the past, some employers have wondered whether providing financial planning services might open up a bag of worms. Will employees demand higher pay? Will a long-term discussion about hopes and dreams create short-term thinking about current employment?
These are good questions to ask. But just as the pandemic created a new way of thinking among workers, employers need to rethink the old ways of doing business.
We challenge you to move into a forward-thinking posture. Are you ready to consider new ways to attract and cultivate happier employees and build a stronger business? Let’s talk about employer-provided financial planning as a benefit.
Not an employer? Don’t worry. We also empower individuals to invest for the life they want. Head over to Our Services to see ways we can help you gain confidence about your financial future, or send us an email at firstname.lastname@example.org.
Debra Brennan Tagg is a CERTIFIED FINANCIAL PLANNER™ Professional and the creator of the DBT360 Financial Plan, a proprietary program that helps her clients prioritize their goals, leverage their resources, and address their risks. She is the president of BFS Advisory Group and teaches the public and the financial services industry about the importance of values-based financial planning and investor education.