In a day-in-age of rising inflation, housing costs, and pandemic-related layoffs, workers have faced financial stress like never before. According to Forbes, 72% of employees are stressed about their finances. Their stress has impacted their physical and mental health.
In response to the increase in financial stress, employers are looking more into financial wellness benefits. Typically, financial wellness benefits are voluntary; however, prospects now expect financial wellness programs as the norm.
There are numerous ways employers can improve their employees’ financial health. Employers should familiarize themselves with the concept of financial wellness, and the benefits they can offer to support employees.
Retirement planning options with match
Retirement planning options with a match typically refer to employer-sponsored retirement plans. These plans offer a matching contribution from the employer based on the employee’s contribution.
Retirement plans are a good opportunity for people to start saving for their futures, but investing can get complicated, especially for first timers. Employer sponsored retirement plans help guide employees and fill knowledge voids. Plus, adding automatic payroll deductions provides an easy way for employees to contribute.
Offering a retirement savings plan is great, but you can do even better. A retirement plan with employer match is a great way for employers to look out for the financial wellness of their team. Not only will this help you keep talent, but it will also help you stand out while recruiting.
Safety net insurance
Safety net insurance is a type of insurance that provides protection to individuals and families from financial hardships caused by unexpected events. Qualifying events include accidents, illnesses, disabilities, or death. It is designed to help people who may not have enough savings or other resources to cover these types of expenses.
Typically, safety net insurance covers basic needs, such as medical bills, disability payments, and life insurance benefits. It sells as a standalone policy or as part of a package that includes other types of insurance.
The goal of safety net insurance is to provide peace of mind to policyholders. Protected policy holders are covered in the event of unforeseen circumstances. It can be particularly important for people who have dependents. Safety net insurance helps make sure that policy holder’s loved ones are taken care of in the event of a tragedy.
Access to emergency funds
Emergencies are among the many reasons employees stress about finances. Bankrate’s 2023 annual emergency funds report states more than 2 in 3 Americans are concerned about emergency savings. Specifically, having enough emergency savings to cover a month’s worth of living expenses.
One of the benefits of an employer-sponsored emergency savings account is that it is another way to help employees build a financial safety net. And of course, another way to reduce their stress levels and improve their overall well-being. Additionally, having an emergency savings account can help employees avoid taking on high-interest debt. Debt like credit card debt or payday loans, which can be costly and exacerbate financial stress. Like a retirement savings account, money transfers from paychecks to the account. The difference between retirement and emergency savings accounts, however, is that there is no penalty for accessing emergency funds.
Other financial reimbursements
Saving up for retirement and having access to emergency insurance or funds is important. You can take finance-related benefits to the next level by offering financial stipends for:
- Commuting to and from the office
- Health & wellness
- Childcare support funds
- Care-giver support funds
- Tuition or student loan repayment plans
Financial planning & coaching
With the right saving habits, employees can work to avoid financial-related stress. Most workers don’t have the financial literacy to properly save money. Gaps in employee financial literacy present an opportunity to include financial planning and coaching as a benefit.
Financial coaching helps guide employees to achieve their financial goals by working with a financial coach. Financial coaching can include helping clients understand their personal finances. Then, guide employees in developing financial literacy, creating budgets, setting, and achieving financial goals, and providing ongoing support and accountability.
Both financial planning and coaching go a long way in helping employees achieve financial stability and security. A financial planner can help develop a comprehensive financial plan. A financial coach can help employees stay on track and provide ongoing support and guidance to help employees reach their goals. Together, financial planning and coaching can provide a powerful combination for achieving financial success.