4 benefits to attract and retain employees during the Great Resignation

Here's how you can help combat the Great Resignation for your company.

(Photo: fizkes/Adobe Stock)

With a record number of Americans leaving their jobs and the ongoing worker shortage in many industries, offering a robust benefits package to attract and retain employees is more important than ever.

Since the start of the pandemic, financial wellness benefits have become even more top of mind and sought after by both employers and employees alike. That’s because better employee financial health can have big payoffs, including reduced financial stress, higher productivity, lower health care costs, reduced absenteeism and higher quality of life.

A SoFi at Work survey found that three out of five employees want financial wellness benefits due to the effects of the pandemic, while over half said that participating in a financial wellness program would reduce their stress. According to LIMRA’s October 2021 Consumer Sentiment Study, Americans have become even more financially stressed over the last six months.

A September 2021 Prudential survey revealed that 46 percent of workers are either considering a job search or actively seeking a new job, with half saying that the opportunity for better compensation and benefits is the primary reason.

Four financial benefits that are most valuable in attracting and retaining employees include:

#1: Retirement plan

There are many different kinds of retirement plan options that fit the needs of businesses of all sizes. When looking for a retirement plan that fits the needs of your employees, consider:

Only 62 percent of workers are confident they will have enough put away to retire, according to the Employee Benefit Research Institute. Morgan Stanley and SHRM research in September 2021 found the three top fears employees have about retirement are: Not having enough saved, outliving retirement savings or losing it all in a down market.

Of course, retirement plans are not one size fits all. Meeting the needs of a diverse workforce is essential.

#2: Non-qualified deferred compensation plan

A deferred compensation plan allows an employee to earn money in one year but receive the money in a later year. Even though pensions, retirement plans and employee stock options are deferred compensation plans, they are known as qualified plans and fall under the umbrella of retirement plans. In this case, we are talking about non-qualified plans, which are written agreements between you and the employee.

With a non-qualified plan:

Some employees, especially those with a high income, like the idea of reducing their tax burden now and receiving the money later when their tax burden will be lighter.

Companies like the idea of non-qualified deferred compensation because they can invest the money back into the business. Additionally, if an employee leaves the company before completing the agreement, they lose out on the money, providing a strong incentive for top employees to remain with the company.

#3: Group life insurance

With group life insurance, an employer covers a group of employees, providing coverage as a multiple of annual salary. This allows employees to get insurance at a lower cost.

A survey by The Harris Poll found that 59 percent of workers would purchase group life insurance if it were offered by their employer. Here are their reasons why:

● Peace of mind – 53 percent

● Protect family from future hardship – 44 percent

● Pay off debts and final expenses in case of their death – 39 percent

● Leave an inheritance – 23 percent

● Replace a partner’s income in the event of their death – 21 percent

#4: Financial wellness education

A holistic financial wellness program offers the knowledge, tools, and motivation for employees to make financial choices and create financial habits that allow them to live a happy life within their means. To ensure that employees experience financial wellness, the program provided should address the needs of your workforce.

According to Bankrate, the top 2022 financial goals are paying down debt, building an emergency fund, budgeting better, boosting retirement savings and investing more money.

The PwC 8th Annual Employee Financial Wellness Survey found that employees want the following in a financial wellness program:

In addition, consider personalized programs that guide employees through specific steps to improve their financial situation, in a fun and engaging way.

As we head into 2022, business owners should consider offering these financial benefits to attract and retain their most valuable asset–their employees.

Kris Alban is executive vice president at Enrich Financial Wellness. 

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