The question Sheila Sieradzki has asked employers the most, over her last 30 years of working in financial services, is this: "What keeps you up at night?"
"The answer I hear most is, ‘my employees,'" Sieradzki says. Employers worried that their employees were struggling. They often cited "managing their money" as a top reason for those struggles.
So, when she began working for Lacasa Inc., a NeighborWorks organization in Goshen, Indiana, she tried to think of a way to provide employees with 1:1 financial coaching – and a plan of action. The result is the Lacasa Employee Assistance Program (LEAP), which launched this week with a free pilot program.
The timing of the pilot, at the start of National Consumer Protection Week, was strategic. During Consumer Protection Week, the Federal Trade Commission (FTC) encourages the community to learn more about consumer rights, how to keep themselves financially secure, and make well-informed decision about money. The LEAP program aligns with all those goals, especially as to how consumer rights relate to credit, Sieradzki says. The timing of the program also allows Lacasa to start working with employees before they spend their tax returns or stimulus checks. That way, "we can guide them to use their funds to further their financial goals in 2021."
And they can do it on the employee's timetable. Employees work first, second and third shifts. In the past, Sieradzki says, it's been hard to be on site to talk to employees for all those periods. In some cases, employees are assigned to workplaces that span a wide region, which can also make it difficult to meet for counseling appointments. During the pandemic, however, when Lacasa financial education and coaching has had to be virtual, Sieradzki' s financial empowerment team found out what was possible. "Working that way last year really proved that clients would connect with us virtually," she says. "We can be available when that employee needs us. They might be on their lunch break. They might be driving home for work and having 30 minutes to themselves."
The employees will be able to set up calls with coaches and get the guidance. Some hours will be offered in evenings and on Saturday to accommodate work schedules of employees.
What Sieradzki learned in the past is that often, employees just don't know where to start when they have financial questions. "If we can give someone steps to moving in a better direction and empower them to take action, I think we're really going to start seeing the needle move on improvement of their financial health."
Sieradzki says she anticipates a high demand for credit-building knowledge, products and services. "Educating them on their rights to accurate credit reporting falls right in line," she says, an apt topic for Consumer Protection Week. "With so many COVID scams erupting, we can't connect them fast enough to help them understand how their identities can be stolen by just one misguided click of a link or entering a username or password in response to an email."The LEAP program will focus on knowledge, skills resources, motivation, and accountability, Sieradzki says. Some employees may have a simple question on why their mortgage rate went up. Some may want to figure out how to improve those credit scores and require more coaching sessions.
The pilot will begin with three employers at no cost, in exchange for feedback, and will last for six months, giving Lacasa time to fine-tune their program. In the fall, they'll approach employers, offering the program for the 2022 benefits season. The cost will be competitive, Sieradzki says, and will help LEAP become self-sustainable. Lacasa financial coaches will lead the program, part of Lacasa's social enterprise, focused on fueling the mission of our Lacasa's Financial Empowerment Center. The organization currently provides low or no-cost services to clients who need it most and will continue to do so. All profits realized from LEAP when it becomes a benefit offering will be reinvested in the organization's mission.
Financial coaching is something all employee types can benefit from, whether they're hourly employees or managers or vice presidents, Sieradzki says. "I've had enough conversations with employees and employers to know that financial stress affects the entire workforce."
Sieradzki says the controlled pilot will help her figure out how many employees will use the program, how many sessions they'll require and how long those sessions will last, which, in turn, will help her figure out staffing. Her expectation for 2022 is that they can take on 3,000 to 5,000 employees. Her hope is that Lacasa will eventually be able to share the program with other nonprofits, particularly with NeighborWorks organizations that focus on financial training. She also hopes the program will bring more people into Lacasa's Pathway to Homeownership program.
The employers who signed up for the pilot include manufacturing, healthcare and financial service industries. The interest was immediate.
"We're off to a great start and I think this program is ‘just in time,'" Sieradzki says. In the first two days of the pilot, six employees reached out to schedule coaching sessions. A couple signed up for a "Master Your Money" course. Areas of concern so far have ranged from credit to homeownership to breaking the cycle of living paycheck to paycheck.
Heart City Health, one of the organizations involved in the pilot program, has had a relationship with Lacasa for years. They've referred patients to Lacasa when the patients needed help with financial education. And employees have purchased homes through Lacasa as well.
So, when the nonprofit reached out to see if Heart City Health wanted to enroll in a pilot program, offering free financial counseling to its 110 fulltime employees, the answer was a quick "yes."
The organization has seen firsthand the financial impact that COVID has had on employees, says LaLaesha Black, chief operating officer for Heart City Health. Although the group hasn't laid off any employees, others in those households may have lost jobs or hours or income.
"We thought it would be great for our employees to have someone to talk to," Black says. "It was a no-brainer. We said, ‘anyone who needs this, help let's give it to them.'" And the timing works out perfectly for the organization.
"We thought it would be great for our employees to have someone to talk to," Black says. "It was a no-brainer. We said, ‘anyone who needs this, help let's give it to them.'" And the timing works out perfectly for the organization.
Staff members have expressed the desire to reach out to get help, especially this year, she says. "But it's not free anywhere and it's hard to trust people."
Because employees have worked with Lacasa to get their homes, the trust value is already there. The program will expand knowledge for their workers, Black says, and will also expand their knowledge about what Lacasa offers. "The ability to give this to employees and help the community is a win for everybody."
The FTC has sponsored National Consumer Protection Week since 1998. Along with awareness and webinars, the organization offers free educational materials about identity theft, scams, and more. NeighborWorks America, along with its national network of local non-profits, is also committed to supporting consumers. They recently launched a special initiative, StopHomeScams.org, to help educate and inform consumers about how to spot, report and protect themselves against scams.
The FTC has sponsored National Consumer Protection Week since 1998. Along with awareness and webinars, the organization offers free educational materials about identity theft, scams, and more. NeighborWorks America, along with its national network of local non-profits, is also committed to supporting consumers. They recently launched a special initiative, StopHomeScams.org, to help educate and inform consumers about how to spot, report and protect themselves against scams.
