Supporting employee financial wellness through times of uncertainty
Employers are in a unique position to support their staff through these confusing times.
Employers have an important role to play in supporting the financial wellness of their employees, which has been strained for many due to the pandemic. Strada Education Network research shows that many are concerned about what the future holds and how it will impact their economic stability. With additional restrictions being implemented in some states, those concerns are not likely to fade any time soon.
In fact, a recent NBC News/SurveyMonkey poll found that 41% of adults are “very worried” that COVID-19 will have a negative economic effect on their household finances. And according to a report by the Robert Wood Johnson Foundation, 43.3% of parents living with children under the age of 19 are facing economic challenges.
Related: More workers want financial advice as pandemic sharpens desire for security
Employers are in a unique position to support their staff through these confusing times. They can assist, now and in the future, by relying on benefits technology to recognize and then react to employees’ individual needs.
Support staff during COVID-19 and beyond
Employees want to be supported through this difficult period. Organizations that do so can make their employees feel more valued. Our latest research found that 82% of employees who feel that their organization takes their needs into account ‘strongly agree’ that their employer-provided benefits make them feel valued, and 68% see themselves staying at their organization for the long-term.
The connection that benefits create between employers and employees is one that is more important than ever as we continue to navigate these uncertain times. By relying on benefits technology, employers can make it easier for employees to engage with and personalize their benefits, allowing organizations to demonstrate that they value their people.
This is especially important now, as digital transformation has evolved significantly. The ability to access and use their benefits at any time and from any location is now essential. In fact, McKinsey research shows that the vast majority (75%) of those who have tried digital channels for the first time will continue to use them after the pandemic has subsided. This makes benefits technology more valuable than ever, and that value won’t change even when the pandemic subsides.
Recognize the individual needs of each employee
Our previous research also revealed that C-level executives are looking to “promote employee well-being” as a top-three strategic objective. Their efforts are particularly important considering the current climate, but before most Americans had even heard about the novel coronavirus, 64% admitted that they were saving very little or no money at all for retirement.
This would explain why, if given the option, 20% of employees surveyed would redirect funds from their benefits packages to clear debt. Thirty percent would use the funds to save for the future. With the average cost of retirement approaching $1 million for a 65-year-old, financial well-being is something to consider well beyond the pandemic. Employers can help by highlighting their financial well-being offerings, such as retirement plans, that are underpinned with quality data and intelligent analytics technology. These plans will better position employees for their future and organizations can also identify areas where employees are leaving themselves vulnerable. By utilizing benefits tech to inform workers of their best options, they will be ready for whatever comes next.
But not all employees are interested in investing right now – some may wish to adjust existing 401(k) plans to increase their income. Employee Assistance Programs (EAPs) – which provide counseling and other services – as well as tips on how to save and tools to help with budgeting, can also be useful in supporting those who are enduring financial hardship.
Strive for financial well-being today and tomorrow
Organizations have evolved to become more than an institution where people work – they can now be a source of support for their employees, who may feel anxious or vulnerable during this difficult period. They need all the support they can get, and employers have the opportunity to provide it in a positive and reassuring manner. Benefits technology is especially important in this regard – it can help employees by making it easier for them to choose the benefits that matter most. By showing that they care, businesses can further strengthen the employer-employee relationship and provide the assistance employees need through these challenging times.
Chris Bruce is co-founder and managing director at Darwin.
Read more: