6 Financial Benefits Employees Want in 2023
The workplace can be an amazing place to grow and succeed, but it’s also where employees look for more than just a paycheck. Financial wellness benefits go beyond salary and represent the employer’s commitment to helping staff members manage their financial lives better. These benefits make it easier for employees to handle their finances, and they’re increasingly becoming one of the most valued resources employers can offer. Over 6 in 10 people believe employers should be responsible for ensuring employees are mentally well and healthy, according to the 2022 TIAA Financial Wellness Survey.
In short—if you’re in human resources, offering comprehensive financial wellness packages is critical for employee engagement, retention, and success. Here are 6 financial benefits employees want in 2023.
Student Loan Assistance
Student loan support will continue to be a vital benefit to employees in 2023, and there are multiple ways to help with this. Whether it be matching monthly student loan payments, assisting employees in refinancing their loans, or even allowing employees to cash in PTO and put that money towards student loan payments, any sort of benefit plan for student loans will help employees. If you’re a non-profit like a school or government entity, adding a financial wellness benefit can also assist your employees in managing Public Service Loan Forgiveness (PSLF).
Whether employees have newborns, toddlers, or older children, providing flexible scheduling and time off is essential. A few things companies can implement to help parents with children of any age are offering remote or hybrid work, allowing for transition time, and potentially part-time work.
Lifestyle Spending Account
A Lifestyle Spending Account (LSA) allows employers to build accounts that fund employees’ everyday expenses, from gym memberships to mental health support to pet support. Although currently, LSA’s don’t have tax benefits, employers don’t have to limit their contribution to go toward healthcare spending or wellness-related purchases like other employer-provided accounts. Employees have few parameters, but employers can put a maximum amount on specific services, such as gym memberships.
Emergency Savings Accounts
Currently, 78% of employees have an emergency fund. However, only half of employees say they can cover 6 months of expenses, according to the 2022 TIAA Financial Wellness Survey. An ESA will help employees save for emergencies by automatically deducting a certain amount from employees’ paychecks each month. Employers can also opt to match employees’ contributions to encourage them to continue to grow those accounts, even if they can only contribute a small amount.
Offering retirement plans for your employees is crucial for their futures. However, 401k plans are a baseline benefit, so you should consider providing auto-enrollment for new hires, making it easier for employees to start their accounts with less administrative stress and offering a competitive employer match.
A crucial financial benefit is offering education on financial topics. Financial literacy isn’t widely taught in schools, 75% of teens lack confidence and knowledge of personal finance, and many adults haven’t learned basic financial literacy. Moreso, 25% of Americans say they don’t have anyone they can go to to ask financial questions, according to Annuity. Providing a benefit offering educational tools and resources will relieve a lot of the financial stress your employees face.
Also, even if employees are offered financial wellness benefits, they might not be utilizing them because they don’t know what they are. Educating employees on their financial wellness benefits and providing continuous educational resources will help them make the best financial decisions. Providing education on these services will also ensure the benefit does not go to waste.
There’s a direct correlation between financial well-being and overall well-being, which means it’s essential, as employers, to recognize these needs and offer employees benefits that will help them. If you want to create an engaged and productive workforce, one of the best things to do is to add benefits your employees actually want. These six financial benefits will help alleviate money stress in the workplace by providing the tools and resources your employees need to do their best job in and outside of the office.
Are you ready to add financial wellness benefits to your company? See how Your Money Line can help and get a demo today!