Financial wellness benefits haven’t historically been an integral part of the employee benefits package. However, as you’ll learn in this post, recent data points to the fact that taking care of your workforce’s financial health today is more critical than ever before—and your 401k offering isn’t enough to address those needs.
Why financial wellness benefits need to be at the top of your list
Among all the other benefits you can introduce to your company this year, why should financial wellness offerings be at the top of your list? Here are three reasons to consider:
Your employees are asking for them
When asked what they feel causes them the most stress, employees cite financial matters more than any other life stressors combined. This isn’t surprising. Finances are a huge source of anxiety for people living in the U.S., with 90% of Americans saying that money has an impact on their stress levels.
Unfortunately, these financial stresses have only been heightened by COVID-19. The pandemic also revealed just how unprepared people are to deal with financial hardships, such as sudden job losses or economic downturns. To put this into perspective: more than one-third of full-time employed Millennials, Gen Xers, and Baby Boomers have less than $1,000 saved to deal with unexpected expenses.
All of these factors have made financial wellness benefits more in demand than ever before. In fact, a recent survey found that nearly 60% of respondents feel it’s more critical now that employers offer financial wellness benefits due to the pandemic. 53% of respondents also said they would feel less stressed about their overall financial situation if they had financial wellness benefits.
They support your workforce today and in the future
When selecting benefits, it’s important to invest in ones that help your employees both in the present and future. For instance, you may offer a generous 401k plan, which is fantastic for long-term financial goals.
However, if your employees are struggling to pay for their rent each month, their 401k plan isn’t going to be much help. As it turns out, this is a common problem. 42% of employees say it’s likely they’ll need to use money in a retirement account for expenses other than retirement. This indicates that your workforce urgently needs a holistic financial wellness benefit to help them with retirement and their day-to-day money management.
They lead to better outcomes
It’s easy to assume that financial wellness benefits will only help employees improve their money management skills. While this will undoubtedly happen, other trickle-down effects come with financial wellness too.
For instance, it’s well-researched that being stressed about money has a direct impact on health. A survey also found that 50% of employees are distracted by finances at work. This ends up costing employers an estimated $250 billion per year in lost productivity and absenteeism. Knowing this, it’s easy to see how the right benefit can decrease the mental and physical side effects of financial stress, improve focus, and save your company a significant amount of money.
It’s also worth noting that there may be consequences to not giving your employees the support they need. If you don’t provide your workforce with financial wellness benefits when they’ve asked for them, you increase the chances of them leaving to find a company that will invest in their financial health. On the other hand, 50% of respondents would be more committed to staying with their employer for a longer period of time if their employer offered financial wellness benefits.
How Origin can help
Ok, you’re convinced that financial wellness offerings are worth the investment. But which one is the right fit for you? While every organization has different needs, most will benefit from partnering with holistic financial wellness platforms like Origin.
We don’t just hand your employees an app and expect them to manage their own finances. Instead, we integrate a team of highly experienced financial planners into our cutting-edge platform to support all your employees on a personal level, while also allowing you to scale according to your company’s needs.
We also don't just look at an employee's retirement fund and tell them how much to contribute every month. At Origin, we take every aspect of a person's financial life into account—from their personal goals to their current savings. Using that information, we provide personalized financial guidance that addresses where they’re currently at and where they want to be in the future.
We genuinely believe many of your employees will benefit from having a holistic financial wellness benefit. The right financial wellness offering can directly address the needs of your workforce, reduce their stress levels, and improve their money management skills for both the present and the future—not to mention you'll also see improved outcomes for your business. To learn more about Origin's financial wellness platform, request a demo.