Your workforce is the engine of your co-op’s success. But while your team members are doing their jobs, who is helping them with their financial needs?
Co-op executives often tell us they want to do more to support and strengthen their employees by helping them reduce financial stresses and build wealth for their futures.
It’s not news to say that Americans are stressed about money. But a recent study by the FINRA Investor Education Foundation put data to the problem. More than half of Americans agree that thinking about their finances makes them anxious.1
Employees who are stressed by money:
- Can be distracted at work and potentially more susceptible to injury
- Could choose to leave their jobs to search for better financial opportunities
- May borrow more often from their 401(k)s and rely more heavily on expensive credit card debt
Homestead Funds works extensively with co-op benefit administrators and has helped develop educational materials and other financial resources. But in some cases, executives have asked us to go a step further.
The Employer-Sponsored Savings Program is a simple, low-cost way for co-ops to encourage employees to save. The co-op provides the motivation, by supplementing saved funds up to a level the co-op is comfortable supporting. Homestead provides the investment vehicles and educational resources to help employees start or continue saving and select an appropriate mix of funds as needed. As always, Homestead will provide account administrative support along the way.
Lake Region Electric is in the heart of scenic Lake Country in west central Minnesota. Lake Region is an important employer within its community and is clued in to the financial health of its team. The cooperative wanted to encourage its employees to save and brought this concern to Homestead.
Together we developed a campaign that took advantage of each partner’s strengths:
- Lake Region set up a program to match employee savings contributions up to a set limit.
- Working with Homestead, Lake Region offered employees investment choices that went beyond bank savings accounts and CDs. Homestead’s mutual funds offered a way for employees to invest in line with their goals, balancing objectives for safety of principal and growth.
- Assets are held in employee-owned accounts, so they can access their money when they need it.
The program proved to be an immediate hit, with more than half of employees signing up within the first month.
Join other co-ops that have worked with Homestead Funds to encourage employee savings. Start an Employer–Sponsored Savings Program today and help your employees save for their financial future. Everything your cooperative needs to evaluate and implement the program can be found here.
Questions? Call us at 800.258.3030, option 3.
1The State of U.S. Financial Capability: The 2018 National Financial Capability Study
Contact us for a detailed case study of Lake Region’s savings system or to find out how you can set up something similar for your team.