For years, financial literacy has been treated as a personal responsibility, something employees are expected to manage on their own. But in today’s evolving workplace, organizations are beginning to recognize their role in helping employees understand and navigate financial challenges. Despite this growing awareness, a significant disconnect still exists between what employees want and what many employers provide.
According to research from the Transamerica Institute, 77% of workers say that financial wellness programs are important, yet only 28% of employers offer them. This disparity shows just how many employees are left without the tools or guidance they need to make informed financial decisions, even when employers are already offering valuable benefits.
So where does this breakdown happen? Often, it’s not a lack of resources but a lack of visibility. Employees may be unaware of the programs available to them or unsure how to use them. That’s where strong internal communication and a robust Total Rewards Communication strategy come in.
The True Cost of Financial Confusion
Financial stress impacts more than an employee’s wallet. It affects mental health, physical well-being, productivity, and retention. Workers who do not feel confident in their financial situation are more likely to be distracted, anxious, and disengaged.
Many organizations invest in retirement plans, health savings accounts, education assistance, or even access to financial coaching, but if these programs aren’t clearly explained and consistently promoted, they may go underutilized. A financial wellness program that no one knows about cannot solve a problem.
Using Total Rewards Statements to Spark Financial Conversations
Total Rewards Statements serve as a powerful tool to open the door to financial literacy. By showing employees the full scope of their compensation, from salary and bonuses to retirement contributions and wellness incentives, a TRS helps them see the bigger picture.
When financial wellness is positioned as part of a larger compensation and benefits strategy, it gains context and meaning. Employees can begin to connect how various pieces of their benefits package support long-term stability, debt reduction, or savings goals.
A well-designed TRS not only highlights financial benefits but also encourages action:
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● Directing employees to education resources or planning tools
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● Providing contact info for financial coaching or EAP services
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● Showing progress over time, such as 401(k) growth or vesting schedules
Financial Literacy Is Not a One-Time Campaign
Financial literacy isn’t solved through a single email or an annual open enrollment packet. It is an ongoing conversation that evolves with life stages, economic shifts, and personal priorities. Just as an employee’s financial goals change over time, so should the way those goals are supported.
HR teams can keep the conversation alive by:
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● Sharing quarterly updates that tie Total Rewards data to real-life outcomes
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● Segmenting communications based on life stages or career levels
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● Hosting webinars, sending newsletters, or launching interactive content during key times of year like Financial Literacy Month or Open Enrollment
The Role of Communication in Closing the Gap
Providing the right benefits is only part of the equation. The other part is ensuring employees truly understand and use them. Bridging the gap between available benefits and employee awareness is a communication challenge, one that requires consistency, clarity, and personalization.
At backstitch, we help HR teams turn Total Rewards Communication into a meaningful part of the employee experience. Whether it’s through personalized statements, targeted campaigns, or year-round engagement strategies, we believe that when employees feel informed, they make better decisions, for themselves and for the organization.
Final Thought
You’ve already invested in the benefits your workforce needs. Make sure those benefits are understood, appreciated, and used. Let Total Rewards Communication be the beginning of the financial literacy conversation, not the end.
Explore how backstitch can help enhance your Total Rewards Communication Strategy.
