In the latest HCI Webinar, Dr. Jonathan H. Westover talks with Alex Kostecki about how HR can develop a financial wellness benefits strategy for employees. Below is a summary of the main points from their conversation! Check out the full episode and let us know what you think!
Watch the episode here:
Jonathan and Alex discussed their personal backgrounds, Utah's growing population and its impact on politics, and the upcoming podcast about financial wellness as a benefit. They also touched on Clair's operations team being based in Utah, indicating a possible expansion of the company. Alex, co-founder and chief revenue officer of Clair, shared his insights and experiences from his work. They also explored the financial habits of Gen Z and millennials, and the importance of financial wellness benefits in the workplace.
Clair's HR Tech Financial Integration
Alex explained the purpose and mission of Clair, a company that aims to connect Human Resources (HR) tech and financial services. The company offers a full bank account that employees can connect to their payroll system, allowing them to access their pay whenever they earn it and grow their savings by up to $1,500. Alex also discussed the HR tech integration, emphasizing on the importance of managing cash flow and providing a better service to users. They also mentioned that Clair works with payroll providers and workforce management systems to facilitate this service. Jonathan inquired about any resistance they might be receiving from organizations they're trying to partner with. Alex responded that payroll providers are starting to understand their potential impact in the financial services world and are careful about data compliance. Jonathan then asked for more details about the specific benefits for workers and employees. Alex explained how Clair's product helps employees save more over time, build their financial lives, and create a stronger link between their work and finances, leading to higher job retention rates and more shifts being picked up.
Financial Habits of Younger Generations
Jonathan and Alex discussed the financial habits of Gen Z and millennials, noting their openness to change and their tendency to move money around more than older generations. They also highlighted these younger generations' lower trust in big banks due to fees and their willingness to spend more on convenience products. Jonathan suggested exploring how HR professionals can strategically engage in the financial wellness space as a benefit for their employees.
Financial Wellness Benefits in the Workplace
Alex and Jonathan discussed the increasing importance of financial wellness benefits in the workplace, particularly in light of tightening budgets and predicted changes in consumer spending. They agreed that it is becoming the responsibility of HR professionals to assist employees in managing their finances. They also emphasized the need for employers to choose benefits providers that offer compliance, value to employees, and long-term sustainability without adding extra work to HR teams. They also highlighted potential challenges ahead, such as regulatory compliance and economic factors impacting demand for consumer products.
Financial Services Discussion Invitation
Alex shared the opportunity for the audience to connect with him and his team for further discussions, especially those with strong opinions about the topic of financial services. He encouraged them to visit their website and connect with them on LinkedIn. Alex also expressed excitement about the changes in the payroll space and its potential impact on the way we bank and borrow money. Jonathan confirmed that they would edit the meeting transcript and share it with Alex, who agreed to review it and might extend the discussion further.
Listen to the webinar here: