HR's financial helping hand

A helping hand

In the midst of the economic crisis, personal finance has become a minefield to navigate.

As a result, a cluster of online financial sites, offering consumer advice on the best places to save and invest, are gaining in popularity; and many employers' HR departments are now offering "emergency funds" to help guide employees through the murky waters of the recession.

But despite this, only a small minority of Americans can actually afford the luxury of a trusted financial adviser; and despite the emerging popularity of online sites and the varied offerings of HR departments, by and large, these processes are often tied-up in the kinds of agreements that offer pay-outs when consumers/employees sign-up - marking them as biased and jaded.

In fact, employer offerings are often so hard to navigate, or are so focused on retirement planning (instead of actually "managing" your finances), that many employees fail to connect with them at all, often rebuffing them without even giving them a chance.

So what can HR do to change this? Well, if the Bill Clinton-endorsed start-up HelloWallet, which boasts an offering of truly unbiased financial advice, really does get the boost that is expected from HR departments, unbiased guidance may just be around the corner.

"Truly unbiased?" That's a pretty big claim, no? Well, if reports are anything to go by, its one that is totally warranted. The new start-up, a simple self-service site without any business affiliation or hidden arrangement with financial institutions, is making waves in its mission to help users identify their financial goals.

The really good news though is that in May 2010, HelloWallet will be offered to HR departments at a cost of less than $6 per head to employers, which analysts predict will help HR managers to soften the blow that often can come from cost-saving moves pertaining to the current crisis.

And the good news for HelloWallet continues as the start-up reveals it has already signed business-to-employer deals with the city of Los Angeles, urban developer Community Builders, and the Rockefeller Foundation.

Does HR have a responsibility to guide employee's through the management of personal finance? Certainly. Is HelloWallet the answer? Well, as Mercer Consulting principal Linda Delivorias, who evaluates 401(k) and other financial planning products for major employers puts it, "There's certainly nothing like this on offer to HR departments right now."



30/09/09

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