When Peers Speak, Employees Listen

Who has the most sway over the financial decisions your employees make?

The answer seems to be “everyone but their employers,” according to a recent International Foundation of Employee Benefit Plans poll.

At a recent meeting for its board and committee members, the Brookfield, Wis.-based non-profit organization asked 150 benefit industry leaders to name the single-biggest influencer on their workers’ financial decisions. In response, 74 percent of those on hand said their employees’ money moves are most affected by the input of family members, friends, co-workers and peers.

While financial education has become a larger part of many companies’ broader employee wellness initiatives, IFEBP finds more employers expanding their efforts in an attempt to also reach those who have the ear of their workers when it comes to financial matters.

The foundation’s Financial Education for Today’s Workforce: 2016 Survey Results report, for example, saw two-thirds of employers offering financial education to their employees. The same report found 40 percent of employers saying they provide financial education to spouses and partners of employees, while 41 percent offer financial education opportunities outside of normal business hours and 20 percent make financial education available on the weekends, so spouses and partners can attend.

Meanwhile, another IFEBP report suggests that a majority of organizations are turning to employees’ peer groups to spread the word, with 63 percent of employers saying they are relying on word-of-mouth communication via workplace “champions” to increase employees’ awareness of benefits such as financial education.

Such employee advocates can play an invaluable role in the effort to increase financial education throughout the organization, said Julie Stich, research director at IFEBP, in a recent statement.

“In our focus groups, surveys and case study work, we’ve seen the importance of workplace champions,” said Stich. “Champions are passionate about the benefit in question—in this case, financial education.”

These “champions” often embrace the education they receive from their employer and pursue more information on their own, she added, noting that 75 percent of employers who indicated in the aforementioned report that their organizations use a “champion approach” report success with this strategy.

“They’ll adopt the benefit in their own life and eagerly talk with their co-workers about it as well,” said Stich. “Their enthusiasm, knowledge and ‘peer’ status grabs their co-workers’ attention and trust.”