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Employee Wellbeing Studies Reveal Financial Wellness Benefits Are Important

Financial Wellness Benefits

The COVID-19 pandemic has emphasized the importance of employee wellbeing.

Of the different holistic employee wellbeing dimensions, the mental, social, and financial wellness aspects of employees were largely impacted in the past two years.

While many employers have focused on employee mental health dimensions as it clearly impacted their engagement and productivity at work, financial wellness was considered by a few employers only.

Studies show that financial uncertainty was one of the key reasons for mental stress, reflecting poor wellbeing and lower productivity. And so, to help employees overcome their stress about their finances, employers have started offering financial wellness benefits.

According to Bank of America’s 11th Annual Workplace Benefits report, almost 95% of employers felt responsible for their workforce’s financial wellness, and 56% felt highly responsible.

Currently, Millennials make up the highest working generation. Unlike the previous working generations, millennials and Gen Z have different expectations from their employers. They are more likely to choose an employer whose values and interests align with theirs, especially regarding workplace culture and benefits packages. According to another study, 21% of millennials wanted their employers to help them with their financial security and savings.

Here is what employees think about their financial wellness benefits.

  • Almost 42% of employees said they are likely to use their retirement funds for other expenses.
  • Although 54% of employees wanted to make their own decisions, they needed an expert to validate them.
  • Since 2018, almost 20% of employers have increased their offerings of healthcare benefits.
  • Almost 5% of employees wished to retire without having to worry about their financial situation.

Keeping in mind the financial benefits and needs of the employees, here are a few ways to help your workforce to help them with their financial wellness.

  • Retirement Plans

The pandemic has shifted the spotlight to have enough savings for a secured financial future. Offering retirement benefits like 401(k) plans can be of great help to the employees in saving up for their future. While the organization can sponsor the plan, employees can also spend a portion of their paycheck before applying for their taxes. In addition to the 401(k) plans, employers can also contribute towards HSA and FSA plans to secure employee’s financial future.

  • Debt Solutions

Debts have become a never-ending issue for many individuals, and it is one of the main causes of stress for many. Be it student loans, housing loans, vehicle loans, or other debts, they have become one of the reasons for finance-related stress, impacting productivity and overall employee wellbeing. Offering a loan repayment program at the workplace can help in lessening their financial burden. This can depend on the company size, turnover rates, and the company budget.

  • Suitable Paydays

Employees may have different debt-paying timelines, which can interfere with their basic spending needs. Employers can take countermeasures to help them deal with this problem and reduce stress. Offering flexible paydays can help them in avoiding delays in repaying their payday loans. This way they can handle their basic expenses and also maintain their credit score.

Financial Wellness Programs

Financial wellness programs go a long way in helping employees make sensible decisions about their financial future. Through these programs, employees can get access to all the needed tools and resources, guidance from expert consultants, and other ways to help teach employees to make critical financial moves for a secured future.

The Great Resignation has enforced employers to start offering employee benefits packages. With the current goal of employers being to protect their skilled employees from leaving, they are doing almost everything they can do to keep them happy and satisfied. Since financial health has become one of the key reasons for workforce stress, offering financial wellness benefits as a part of the employee wellness programs has become a key engagement and retention tool.

Post Author: Admin