Now, more than ever, employees crave financial empowerment and turn to their employers to make it happen. Employees want access to trustworthy, reliable resources that fuel their journey toward financial well-being. Workplace financial wellness benefits are no longer a perk. They’re a must-have. By offering programs that include financial education, savings plans, and educational assistance, companies can attract and retain top talent, boost employee morale, and unlock a financially secure workforce ready to thrive.
Inflation is still top of mind for employees. According to PwC’s 2023 Employee Financial Wellness Survey, 60 percent of full-time employees are stressed about finances. 53% say they are most worried about their expenses increasing, and 44% report that inflation has had a major impact on their financial situation over the past year. Easing the effects of inflation and providing flexible benefits that relieve your people’s financial stress are mission-critical.
Ditch workplace stress, ignite financial well-being, and engage your team without HR headaches. Become the employer that champions financial confidence, boosting morale and productivity with easy-to-implement solutions. In this article, we’ll discuss how you can transform your workplace benefits strategy to support employees’ financial wellness.
Here’s what we’ll cover:
- Why should employers care about employees’ financial well-being?
- What are financial wellness benefits?
- Financial wellness benefits employees want most
- Why financial wellness programs are a must-have employee benefit
- Create the ultimate financial wellness benefits strategy
- Level up your wellness benefits strategy
Why should employers care about employees’ financial well-being?
A robust employee financial wellness strategy distinguishes your organization in today’s competitive talent market. HR leaders understand the power of customizable benefits to boost employee well-being, build equitable and inclusive workplace cultures, and bolster financial security. It’s a win-win: happier, healthier people powering your success!
Financial stress drains energy and impacts both mental and physical health. Empowering your employees with financial wellness programs tackles this head-on, leading to a healthier, happier, and more motivated workforce – a smart investment in your company’s future.
Engaged and informed employees are more likely to contribute positively to the workplace. Investing in their financial health shows you care, building trust and a collaborative spirit. Bank of America’s 12th annual Workplace Benefits Report found that 80% of employers believe offering financial wellness support results in more satisfied, loyal, engaged, and productive employees.
What are financial wellness benefits?
Financial wellness benefits create a supportive workplace environment that prioritizes employee financial health. These benefits help employees navigate their financial lives effectively, including financial education and coaching, lifestyle benefits, pre-tax savings accounts, and tuition and student loan support.
Financial education and financial planning are foundational to financial well-being. Employees across generations say they want financial advisors and wealth management professionals not tied to financial products or a company retirement plan. You need trustworthy, objective advisors to help employees understand and evaluate financial options and make well-informed decisions. From setting personal finance goals to financial wellness checkups, one-on-one coaching, and financial education seminars, personal financial advisors can help employees with investments, retirement savings, tax, and estate planning.
Go beyond traditional healthcare and retirement plans and empower your team with resources to master their money, from budget hacks to smart saving tips. Employees feeling more in control of their financial situation positively impacts their overall well-being.
Successful financial wellness programs often offer a range of benefits and resources, allowing employees to choose what works best for their individual needs.
Financial wellness benefits employees want most
Savings plans and strategic benefits
Employer-sponsored savings plans are integral to the employee benefits package, providing economic security and promoting overall well-being. These plans cover a range of needs, including healthcare expenses, emergencies, and long-term retirement savings.
More credit cardholders are carrying card balances from month to month, a recent Bankrate credit card debt survey finds. In November 2023, 49% of cardholders fell into this credit card “debt revolver” category — up from 39% in 2021. And as of September 2023, 62% of adults said they are living paycheck to paycheck, according to a LendingClub report.
Employees can’t focus on savings or become financially resilient when their day-to-day personal finances are in chaos. Debt reduction programs, budgeting tools, and credit report guidance can provide immediate relief and help people save for retirement, healthcare costs, and emergencies.
According to a survey by the Employee Benefit Research Institute, more than 80% of workers expect their workplace retirement savings plan to be a source of income in retirement. 401(k) plans, pension plans, and other retirement savings options demonstrate a company’s commitment to its employees’ long-term financial security.
Lifestyle Spending Accounts (LSAs) allow employees to allocate funds to various lifestyle-enhancing expenses beyond traditional healthcare. Employees appreciate the flexibility to use these accounts for expenses such as fitness memberships, wellness programs, and other personal development activities, contributing to their overall well-being. LSAs celebrate the diverse needs of employees and provide a customizable way to support their individual lifestyles and interests.
Employees appreciate HSAs and FSAs for their tax advantages, as contributions are made pre-tax, reducing taxable income. These accounts empower employees to manage and control their healthcare expenses, providing flexibility and financial benefits for medical costs and qualified dependent care.
Some employers encourage and assist employees in building emergency funds to cover unexpected expenses. Employers may provide financial education on the importance of emergency savings and tips on how to build and maintain them. Some employers offer matching contributions to employees’ emergency funds, similar to retirement plans.
Family planning and caregiving
Set your organization apart and attract talent returning from career breaks with family-centered financial benefits that show you care. Working parents want to thrive in their careers and at home. Lighten their load with childcare subsidies, adoption support, and fertility reimbursements. Paired with family or eldercare support, generous caregiver leave, and flexible work options, you’ll discover happy, productive teams crushing their goals.
Savings programs, tuition reimbursements, and loan assistance help employees save or pay for educational expenses. These investments aren’t just about education. They’re about unleashing potential and building a future-proof workforce. Show you care about their aspirations, watch them crush their goals, and see your people reach new heights.
Unlocks stability and financial freedom for your teams. Down payment grants boost homeownership, and rental subsidies mean no employee is left without affordable housing. Partner with local heroes – nonprofits and housing gurus – to guide your people through every step of the housing process. Housing support translates to a thriving, secure workforce!
Why financial wellness programs are a must-have employee benefit
The employee benefits landscape continues to shift dramatically as the workforce becomes increasingly diverse and employees need to evolve. Workplace benefits are no longer one-size-fits-all. Increasingly tailored to meet individual employees’ unique needs, total benefits encompass an array of offerings that support employees’ well-being, financial stability, and personal growth. Employees are looking for a benefits package that supports their overall well-being, including financial health.
Financially stressed employees tend to be more distracted, less engaged, and more likely to seek another job. According to PwC’s 2023 Employee Financial Wellness Survey, 73% of financially stressed employees say they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees. Employees are more likely to stay with an employer who provides financial wellness programs and are more dedicated to their work because of these benefits.
Create the ultimate financial wellness benefits strategy
When designing financial well-being programs, it’s important to consider the diverse needs of today’s multigenerational workforce. Financial well-being is not a stand-alone issue and can vary widely by age, gender, salary, and life circumstances. Think about Gen Z facing student debt and high housing costs while Baby Boomers consider approaching retirement and their long-term savings.
The solution is customizable benefits tailored to the needs of your people. Successful financial wellness programs often offer a range of benefits and resources, allowing employees to choose what works best for their individual needs. Flexible benefits cater to a broad range of circumstances, making them more inclusive and effective.
Level up your wellness benefits strategy
The long-term consequences of financial issues are strongly linked to stress, anxiety, poor health, unhealthy lifestyles, absenteeism, and reduced job effectiveness. Designing benefit plans to help employees manage their health and finances so they can remain engaged and productive at work should be a top priority for companies. Employees who are physically thriving, financially secure, emotionally balanced, and socially connected are more engaged and productive.
Financial wellness programs and lifestyle benefits demonstrate employers care about their employees beyond their responsibilities. LSAs serve as a cornerstone of a comprehensive benefits strategy designed to address the evolving needs of the workforce in dynamic economic conditions. Level up your benefits strategy to address the real-life challenges your people face and unlock the power and resilience of your workforce.
With the Espresa platform, HR delivers what your employees want and need. Ready to learn more about Espresa? Reach out to our team for a free demo!