There is tons of evidence proving that employee health and wellbeing impacts organizational productivity and business growth, in many ways. And so, businesses are now seriously considering to invest in employee wellbeing. Apart from physical health, employers are also looking to offer wellness programs that focus on social wellbeing, financial wellness, and other holistic health dimensions.
According to an Employee Financial Wellness Survey, employees were very concerned about their finances and economic well-being.
- Almost 50% did not have emergency savings.
- Almost 50% had credit card dues.
- More than half of the employees were stressing due to finances.
- 40% spent an average of 3 hours at work thinking about their finances.
- 33% found it difficult to manage regular monthly expenses.
Offering a financial security blanket to the employees to manage their healthcare costs will help employees with their out-of-pocket medical expenses, and also help employers to reduce the healthcare costs.
With the current COVID-19 situation making things uncertain, employers must contribute towards the financial wellness of their employees.
Here are the 4 key reasons why employers must strategize to provide add an extra financial security benefit to the existing employee benefits plan at their workforce.
Reviving The Health Benefits Offerings
Studies have shown that a standard employer-sponsored health benefits plan is accompanied by almost $8,000 worth of expenses from the employee’s pocket. Most Americans are dependent on their paycheck for their monthly expenses, and almost 40% have issues covering an emergency expense of $400. And so, despite getting medical coverage from employers, most individuals are practically uninsured. This is why employers can offer financial security by crediting their medical expenses, something which the health plans may not offer.
Providing Access To Quality Health Care
Despite having high deductible health plans, many employees are skipping care, which may turn out to be more expensive than the premiums. While deferred healthcare can affect employee health and wellbeing, it also impacts workplace productivity. The longer the delay in healthcare, the higher could be the health plan expenses. By offering financial security to the employees and by removing the barriers to healthcare, employees can seek quality healthcare at the right time, avoiding any ripple effect on their health and wellbeing.
Encouraging Health Savings Accounts (HSA)
HSAs or Health Savings Accounts are effective additions to employer-sponsored employee benefits. Most times, they are the only financial benefits that can be designed and offered by employers. Although most employees feel that the HSA and its premium could be a good choice for them, the idea of a one-time deductible is the reason why many hesitate to enroll for it. Also, they are more worried about the time when the premium may be deducted, as it is likely to be at the starting of the plan year. Employers can remove the barriers to make HSA an effective plan and also add the financial security benefit to the employees for them to pay for their healthcare costs, more affordably.
Effective Employee Retention and Recruitment Tools
A recent Gallup survey showed that the availability and affordability of healthcare benefits as a part of the employee benefits plan rank the top in the employee retention concerns in America. Most employers are dealing with issues concerning recruiting skilled talent and retaining loyal employees. Offering financial benefits as a part of the workplace benefits plan could be an effective strategy to recruit and retain employees. While the reduced employee turnover rates can help with better productivity and business ROI, financial security will also be helpful to the employees to deal with their healthcare expenses. Furthermore, companies can set themselves apart from their competitors and give them the extra edge in the market by being a pro-employee organization.
The recent COVID-19 pandemic has changed the outlook of employers on employee health and wellness. Also, the scope of healthcare and the enrollment rates has made employers rethink their employee benefits strategies, while working to keep the healthcare costs down. Offering financial security benefits could be an effective investment, which will not only help in retaining loyal and skilled employees but will also reduce the overall healthcare expenses.