Understanding personal finances are very important for your financial health. A growing trend in the next year is how employers are taking more of an interest, and feel more responsibility, to support the financial wellness of their employees. In general, this means providing employees with the tools and resources they need to seek financial assistance—whether that’s access to financial planning or consulting, or budgeting platforms. Over the past year especially, finances have been of great concern, and have caused a lot of added stress on everyone, directly affecting livelihood and work performance. Providing access to financial assistance to employees is a great way employers can show support of employees’ financial well-being.
According to a 2020 Bank of America survey, 62% of employers feel extreme responsibility for the financial wellness of their employees, an increase from only 13% less than a decade prior. On the other side, this survey found that employees who would rate their financial wellness as good or excellent is on a steady decline since 2018. Many employers are adding financial wellness programs to their benefits offerings to help employees understand their financial situations and make educated decisions to prepare for their future.
Financial wellness programs can assist employees with topics ranging from saving for retirement, planning for unexpected healthcare costs, budgeting, saving for college, and debt management. Not only do financial wellness programs help employees feel less stressed and overwhelmed, they also increase productivity, engagement, and loyalty among employees.1 A less financially stressed employee will be able to focus more on their job, making a financial wellness program a major benefit to both employees and employers. The program can either be paid in full by the employer—where employees gain access to financial advisors at no additional cost to them—or can extend some cost to the employee, depending on what type of program you select. So far, the most successful financial wellness programs have been those that add no additional cost to the employees and allow employees to seek financial advice and assistance in-person or virtually.
Coming off a stressful year that put a lot of strain on employees’ financial situations, many employees are seeking assistance to bolster their financial wellness. A 2020 MetLife survey reported 69% of respondents stating that improving their financial health was a major goal for them in the next few years, and 27% of workers are more interested in obtaining life insurance, showing an added importance to preparing financially for the future.
If you are looking to add a financial wellness program for your employees, Harbor America and our team of experts can help. We currently offer multiple employee benefits through our PEO service, and have a team of benefits and human resource professionals who can assist you in finding the right financial wellness program to support your business and employees. Contact Harbor America to get started on implementing a program that makes sure your employees feel supported and appreciated.