Recently, financial wellness has become a popular topic in the world of HR Professionals and company benefits packages. It is also becoming a need more than a want for employees from their employers because of the world we live in today. COVID-19 has caused employees a lot of financial burdens, which has led to financial stress in the workplace. BenefitsPro states, that 65% of employees are stressed out about their finances from the pandemic, which costs employers across the country an average of $4.7 billion per week in lost productivity. The bottom line is your employees are stressed and it’s affecting their work which means it’s your responsibility to relieve that stress by providing a financial wellness service. How exactly you do that and what your employees expect is what we’re going to help you understand so that you can provide them with the financial wellness benefits they deserve.
What’s are financial wellness benefits?
financial wellness benefits is becoming a must-have in the workplace due to increased financial stress in your employees’ lives. Financial wellness benefits are tools- like Your Money Line, that give employees access to expert guides and the resources to live a financially healthy life that is stress-free. These benefits help employees stick to a budget, pay off debt, create saving funds, plan for retirement, and much more. Financial wellness benefits help employers retain employees, increase the overall well-being of employees, and increase productivity.
5 financial well-being benefits employees want the most
It’s crucial to meet your employees' needs now more than ever because companies struggle with retention rates. If you can provide your employees the benefits they want, like the ones below, you will show your employees you care about their overall well-being beyond the workplace and your retention rates will reflect this change.
1. Employer matching benefits
One of the top benefits that employees want is employer matching benefits. This means an employer matches their employees’ contributions to some degree, whether a full match or a portion. Matching benefits act as a catalyst for getting employees to save for retirement and other goals at any stage in their life. These are also crucial for recruiting and retaining employees. Offering matching benefits has proven to attract and keep good employees. Below are different types of matching benefits, including retirement plans.
- 401k/403b/457 retirement matching: Offering a retirement matching benefit helps your employees save for their future. An automatic enrollment, which signs your employees up for a retirement plan automatically, also makes it easier for them to save.
- Student loan matching: Student loan matching allows businesses to contribute to employees’ retirement accounts when they make their student loan payments.
- HSA matching: A Health Savings Account match is offered to employees who participate in funding their own HSA and increase their ability to save for future medical expenses.
- 529 Plan matching: Similar to a retirement matching plan, you can match contributions to future college savings for your employees and their children.
2. Insurance benefits
Retirement benefits are listed as the number one financial wellness benefit employees want, safety net insurance comes in a close second place. Safety net insurance most commonly includes life and disability insurance and became more popular during the pandemic when employees faced difficult times.
Insurance benefits, in general, according to the same study done by SHRM, are listed as some of the essential benefits companies can offer their employees. Companies may offer many different types of insurance, and employees want more options that are voluntary to support all of their needs.
- Life insurance
- Disability insurance
- Medical and Dental insurance
- Safety Net Insurance
- Pet insurance
- Legal insurance
- Disability insurance
- Accident insurance
- Homeowner’s Insurance
3. Access to emergency funds
Preparing for a crisis with an emergency fund is one way your employees can be prepared for all life throws at them. Even better is offering your employees a way to create and add to that emergency fund. An emergency fund you set up for your employees can help ease a lot of their financial stress. You can offer your company payroll deductions into an emergency fund. These accounts can be set up like a savings account and connected to a debit card. It’s similar to retirement fund deductions, but your employee can access the money when needed with no penalty. Access to an emergency fund is just one more thing you can do as an employer to help your employees financially.
4. Financial reimbursements
Financial reimbursements can help your employees be even less stressed about their finances. Giving financial stipends and offering reimbursement can ease your employees’ minds and provide financial relief. You can consider adding one of these financial reimbursements, or you can tailor it to your employee population, get creative!
- Technology stipend: Offering a set amount of money to help employees pay for wifi, computer accessories, etc.
- Commuting assistance: Financial assistance for gas, public transport, and parking.
- Tuition reimbursement: Provides money for an employee to be able to pay for more college classes.
- Stipends for professional development: Money provided for employees to continue education related to their occupation.
- Paid sabbatical: Paid leave that offers employees time to focus on personal or professional growth and development.
- Childcare support: Providing funds to help employees hire babysitters or take their children to daycare
- Doggy daycare: A stipend that helps employees pay for pet care while they’re at work.
5. Financial education and coaching
Lastly, many of your employees probably struggle with understanding their finances in general. Many people lack the resources to become financially literate, which is where a benefit like Your Money Line can help. Our financial guides can help your employees with any financial questions they may have. Below are just a few examples of the topics we can help with.
- How to budget
- Paying off or managing debt
- Public Service Loan Forgiveness (PSLF) Program
- Understanding different types of retirement plans
- Saving for a kids’ college education
Our guides can help you become more comfortable with your finances by providing expert guidance. Our guides provide personal one-on-one guidance and coaching while meeting your employees where they are. Financially literate employees lead to more productive and overall happier employees.
How financial wellness benefits impact employees in a positive way
Many employees feel their employer should help them with their personal finance problems. Here are some additional benefits of financial wellness that impact your employees positively in the workplace:
Higher participation in the company retirement plan
A lot of people don’t feel the need to start saving for retirement when they’re young because they don’t see the importance of it. By including a financial wellness benefit, you can educate your employees on your retirement plans which will lead to higher participation in the company retirement plan. Read here about 9 ways to prepare for retirement.
More debt-free employees
You have employees in debt and many of them don’t know how to get out of debt. However, people who are out of debt or have their debt under control are more stress-free and their minds aren’t consumed by their finances. Here we wrote about ways to pay off debt.
Higher retention rates
Employees who have financial stability are less likely to leave your company in search of a raise or better benefits.
Less reported employee stress
65% of employees are stressed about their finances according to a BenefitsPro survey. By providing the benefit of a financial wellness service, your employees' stress will decrease.
More productive and engaged employees
Finally, if your employees aren’t stressed financially they will be more productive and engaged at work.
Offer a Financial Wellness Benefit to Guide your Employees to a Better Tomorrow.
At the end of the day, your employees can’t do their best work if they are consumed by the stress of their finances. That’s where Your Money Line comes in. We take a holistic and empathetic approach to financial wellness. Our personal Financial Guides, all Certified Financial Planners® and/or Accredited Financial Counselors®, provide one-on-one coaching and meet your employees where they are to make sure they feel in control and supported in their finances. Contact us today to learn more!