Practical steps businesses can take to improve retention and employee well-being through financial education
Financial stress doesn’t stay at home. It shows up in the workplace, affecting focus, morale, and retention. As PwC notes, 57% of employees cited financial matters as their primary concern and half of employees spend over 3 hours of work time each week managing personal finances.
Helping employees improve their financial literacy can lead to a more stable, engaged, and productive workforce. At First American Bank, we work directly with employers to make that happen.
We support business clients by offering personalized financial education to their employees in English or Spanish, especially around retirement planning. These sessions are straightforward, practical, and tailored to each team’s needs.
Bringing clarity to retirement plans
Most often, our work starts with a company’s 401(k) offering. Once a plan is in place, we meet with employees, explain how the plan works, and answer their questions. Sessions are held onsite or virtually, depending on the company’s preference. 401(k)s are a great starting point- yet only about half of American workers have access to one, and of those who do, 40% aren’t actively contributing.
Many employees are unfamiliar with investing or unsure about the options available to them. Some worry about market volatility and hesitate to participate in the plan. Others might assume that a savings account is enough. We help them understand how inflation and compounding affect long-term savings, and walk through real-world examples of how retirement accounts can grow with consistent, thoughtful investing.
Follow-up matters
Financial education isn’t a one-and-done event. We make sure employees have someone they can reach out to for ongoing support. Whether they have questions about investment options or need help reviewing their contribution strategy, they can speak directly with someone from our team.
This accessibility often makes a measurable difference. In several cases, companies have chosen to move their retirement plans to First American Bank because their previous provider didn’t offer responsive or hands-on service. For employers, having a real point of contact increases employee confidence and leads to stronger plan participation.
Different teams need different strategies
Every workforce is different. A company with mostly younger employees might see more interest in growth-focused investing and early saving strategies. Teams with senior staff members may need more help understanding risk tolerance, account protection, and how to structure withdrawals later on.
We adjust our strategies accordingly. For example, we helped a beauty salon implement its first retirement plan. Participation started out low, but with consistent education, interest steadily grew. On the other hand, when we work with engineering or professional services firms, we often see employees come in with more financial knowledge and readiness to engage. The approach shifts based on the group.
A retention tool many companies overlook
Offering a 401(k) plan is a solid move. But if employees don’t understand how it works or why it matters, it often goes underutilized. By making education part of the offering, employers turn a passive benefit into something meaningful. When employees feel like their employer is investing in them – especially in a way that impacts their long-term stability – they’re more likely to stay.
Here’s where to begin
If you’re looking to provide better financial tools to your employees, the first step is often a conversation. Your relationship manager or commercial banker can help you explore what’s possible. A single education session can bring clarity to your team and increase the value of benefits you already offer.
Financial literacy is a personal issue that can have real business implications. Helping your employees make smarter financial decisions can lead to better retention, more engagement, and a healthier company overall.
At First American Bank, we partner with businesses to make this process simple, practical, and effective. Get in touch with our team to learn more.
