2021: The year of financial well-being

This year has been eye-opening for companies and employees alike and though it has been challenging, the knowledge and insight gained is leading us all in the right direction. Employers now recognize the importance of offering financial wellness services to support their employees. They are beginning to understand why single-point solutions don’t quite hit the mark, and how a holistic financial wellness program can impact their employees’ productivity in a big way.  For many, the future of the workplace will consist of adopting technology that allows employees to be more efficient, successful, and loyal.

Effects of the pandemic in 2020

Through the COVID-19 pandemic, employers have realized that employee well-being is a critical component in employee productivity and performance, as companies are looking at much more integrated approaches to factor in physical, mental, and emotional health benefits.

For many Americans, the number one source of stress has always been money. The American Psychological Associations recently reported that 70% of Americans list the economy and their work as main sources of stress. This rate of stress brought on by finances and employment increased dramatically in 2020.

No one could have predicted the effect the coronavirus pandemic would have on the world. It has highlighted the importance of accessible financial, mental, emotional, and physical wellness services.

4 things employees will be looking for in 2021

The coronavirus-driven virtual work environment has been the catalyst for a shift in benefits that acknowledge the merging of ‘personal’ and ‘business.’ Employees are turning to their employers to help with all aspects of their lives, as there is no longer a clear delineation between ‘work’ and ‘life.’

So, while employees have a renewed focus on benefits, what will they be looking for in 2021?

1. Flexibility. Employees want employers to trust in their ability to manage their responsibilities.

Whether this equates to eliminating the traditional paid time off benefit and allowing employees the freedom to determine when they have the capacity to take time off, enabling them flexibility during the day when they’re ‘on the clock,’ or giving them the choice to have a hybrid work model, they want to decide. Employees want to know that they are in control of their lives.

2. Stability. The pandemic has demonstrated how important it is to have stability in key aspects of life: reliable employment, mental and emotional fortitude, a solid financial foundation. The ability to successfully sustain these elements is critical to employees’ overall well-being.

They are looking to their employers to provide resources that allow them to effectively navigate personal and environmental changes and maintain their well-being.

3. Health. Another critical need that has been heightened in light of the pandemic is the focus on health and well-being. Medical benefits are being highly scrutinized by employees.

Health/wellness programs, HSA/FSA opportunities, mental health coverage, extended family care benefits – elements that contribute to their overall well-being.

4. Wealth. And this doesn’t just mean monetary wealth. Employees want to feel satisfied as contributing members of society. They want a purpose, and they want to be recognized for their efforts. They want to feel valued at their place of employment, and they want to know they are making a difference.

They want to support their communities, their families, charities they believe in. They want to work for an organization that allows them to not only achieve personal success but also contribute to the greater good.

4 areas expected to see increased adoption or innovation in 2021

Employees are paying close attention to – and making use of – the benefits their employers offer. Here are four specific areas where we should expect to see increased adoption and/or innovation over the next year:

1. Real-time wages. Technology and the gig economy are creating opportunities in the mainstream workforce to allow employees to dictate their cash flows and when they want to be paid.

Employees are becoming accustomed to this convenience, and employers outside of the gig workforce are going to be expected to support this funding capability.

2. Rainy-day funds. Retirement plans offer highly effective long-term planning programs. However, most financial stress is due to short-term uncertainties and volatile the cash flow of employees in middle-America (see real-time wages).

Employer-sponsored savings plans should see both adoption and innovation as a push for tax-advantaged platforms becomes a reality.

3. Employer-supported childcare. The pandemic has been incredibly destructive to the childcare and educational systems across the globe. Employers going beyond financial support and providing an infrastructure to offer care for employees and their families will find themselves in a premium benefit tier.

This type of support from employers gives employees the freedom they need to focus on their careers and mental wellness, knowing their families are well taken care of.

4. Concierge health care: The key to driving down the increasing cost of health care for both employers and employees is efficiency, access, knowledge, and cost control mechanisms.

Concierge services provided by employers offer low-cost options that give employees access to the health care they need, but through adoption of the program the price-points are reduced without sacrificing the quality of service employees deserve.

Employees expect their employers to provide benefits and resources that support their overall well-being, especially when it comes to personal finances and mental health. They need help reducing stress levels and balancing their work/life responsibilities, which will be major contributing factors that will influence benefit trends in the years to come.

Financial wellness becomes most-wanted benefit

A holistic financial wellness program gives your employees the resources to pursue opportunities in all aspects of their lives to achieve overall well-being. Heading into 2021, financial wellness tops the list of most desired programs because employees want to be seen, and heard, and feel like their needs are essential to the organizations they devote so much time and energy to.

David Kilby is the president and CEO of FinFit.