How Employee Resource Groups Can Make Financial Wellness More Approachable

In the evolving landscape of workplace financial wellness programs, employee resource groups can play key roles in driving employee engagement and participation, according to a financial wellness webinar held on Thursday by the Employee Benefit Research Institute and Greenwald Research.

Megan Conroy, director of financial education strategy and delivery at Bank of America, explained to the audience that these groups help create an environment of trust and relatability, which leads to higher engagement rates in financial wellness programs. By working closely with ERGs, she said, employers can offer more personalized and effective financial solutions, especially for employees from underrepresented groups.

“People want to hear from people that look like them,” Conroy said, highlighting the role ERGs play in connecting employees with resources relevant to them. “What we find is that when employers work with employee resource groups to create and deliver these programs, they have better ‘action rates’ associated with them. While you might not be casting as wide a net with what you’re doing, you’re getting a much better engagement rate.”

She added that ERGs create a more comfortable environment in which employees feel understood and supported, making it easier for them to seek financial help. For example, Conroy said her organization has started hosting panels on which women share their experiences with financial challenges and how they overcame them.

“It just hits different,” she said. “These sessions provide a space for women to listen and learn from each other, helping them gain confidence in managing their finances.”

Conroy emphasized the importance of having a diverse group of financial educators, including women, Spanish speakers and people of color, who can connect with different employee groups.

“We partner with sponsors and these resource groups to ensure that we have a diverse workforce delivering the education,” she said.

Financial Coaches

Barbara Kontje, the director of retirement and smart saving at American Express, echoed these insights, noting how her company has leveraged employee feedback and ERGs to shape its financial well-being programs.

“When we talk to colleagues and look at national surveys, the first thing people want is access to financial planning,” said Kontje.

However, she emphasized that many employees feel intimidated by the idea of working with a financial planner, often believing they do not earn enough to warrant such services.

“People will say, ‘I don’t make that much money. I don’t need a financial planner. I just need to figure out how to pay my bills,’” Kontje said.

To address this, American Express rebranded its financial planners as “financial coaches” to make the service more accessible and less intimidating. By framing the service as financial coaching, the company has seen increased engagement, particularly by employees who might not have considered seeking financial advice otherwise.

Kontje also stressed the importance of listening to employee feedback to continuously improve the program. “You really have to look at the data, see what it tells you and listen to your colleagues,” she said.

Over the years, American Express has made tweaks to its 401(k) design and other benefits based on employee input, evolving the programs to meet the changing needs of its workforce.

The 2024 EBRI Financial Wellbeing Symposium was an all-day in-person event streaming online that included discussions about solutions and policy actions that can improve workplace well-being.