by Abby Doan
As employee benefits continue to shift due to the impact of COVID-19, financial wellness strategies are climbing the priority list for post-pandemic benefits. As we soar toward 2023, offering financial wellness tools has also become an integral part of DEI strategies for employers across the country.
The financial and mental impacts of the pandemic have caused mass resignations, making it increasingly difficult for employers to keep employee retention high. Workers are considering quitting their jobs to change companies or industries, according to Prudential's Pulse of the American Worker Survey. Employees have had over a year to reconsider their career paths and work-life balance, so it is not surprising that many have chosen to pursue new opportunities. High-skilled workers, who are the most difficult for employers to replace, tend to have more opportunities available to them and are more likely to change jobs. That being so, employers will have to provide employees with more incentives to stay. Forward-thinking employers will be offering new benefits to employees, creating a surge in recruitment competition in the market. It’s a crucial factor in a solid diversity, equity and inclusion strategy as well.
If you want to bolster employee satisfaction, you can show your returning employees that they are valued by investing in their financial wellness. To do this, employee benefits managers must pivot to financial benefits services that provide employees with immediate and direct assistance. One of the main drivers of employee retention is flexibility.
How does financial wellness impact workplace productivity and reduce presenteeism?
In a recent article, Ellie Margulis with Your Money Line shares the why behind this driver. She states, “most employees aren’t getting the help they need in terms of their finances. Three in four Americans are stressed and spend 9.2 hours on average at work a week dealing with their finances.”
According to a study conducted by Bank of America, 93% of Gen Z/Millennials, 94% of Gen X, and 84% of Baby Boomers/Silent Generation employees are stressed about money management. 46% of employees say that financial health impacts their overall well-being and therefore interferes with their work. 95% of employers agree that they feel a sense of responsibility for the financial wellness of their workforce. It’s understandable that employees are looking for plans that will give them more: more financial freedom, more holistic planning, and more retirement and health care savings.
Margulis continues, writing, “There are also disparities when it comes to student loan debt. People in underrepresented communities on average face more student loan debt. Black students owe on average 12.5% more than they borrowed in student loans while White students owe less than 12% of what they borrowed four years after graduation.”
Savvy benefits leaders are reimagining financial benefits by taking a holistic approach to financial wellness and giving their employees more control over their planning. Less 401k borrowing is more money saved and less financial stress for employees is more productivity in the workplace. Additionally, higher employee satisfaction and retention will lead to less onboarding, which saves more time for employers. With a flexible financial wellness plan, you can remove the obstacles to your employees’ full participation in life and work.
What’s the solution?
According to Employee Benefit News (EBN), financial wellness for employees can be characterized by three key concepts: being able to live the lives they’ve earned, having the freedom to fully participate in the economy they helped create, and having the financial flexibility to endure the ups, downs, and unknowns of life. Only one benefit can fulfill all of these concepts, regardless of the other benefits offered in the package: earned wage access. EBN defines earned wage access as “an emerging employee benefit that provides workers on-demand access to wages they have earned but not yet been paid on.”
For a financial benefit program to provide intrinsic value to employees, it should come with a sense of security, so they can focus on work without the added stress of unforeseen costs or bad money management.
Margulis challenges employers with the following, “It’s important for employers to be creating a path toward lasting wealth for their employees in underrepresented communities. One of the first steps towards this is by including a financial wellness service in your benefits package.”
Your Money Line simplifies financial wellness programs by providing expert guidance. You can use their online calculator to determine the impact of financial stress on your organization by visiting www.yourmoneyline.com
To read about the impact Your Money Line has on the benefits bottom line, learn more about them on The Granite List.
