Employee stress over finances soars, benefits leaders respond

Employee benefits are especially significant amidst rising costs and an election year. A recent report shared by Lively found that 80% of benefits leaders feel that offering competitive financial benefits is more important than it was a year ago. 

As economic volatility and inflation continue to rise, 40% of benefits leaders say that employees are becoming more stressed about finances with nearly half asking for increased pay or bonuses. Intensifying costs will only add to that stress as 64% of benefits leaders say they expect to see health insurance costs rise between 10% – 35% in the next year. 

How organizations respond to the current economic conditions, especially when it comes to health insurance will be critical. According to the report, 50% of benefits leaders say that health insurance is the most important benefit for employee recruitment and retention. 

Nearly 78% of companies offer Health Savings Accounts in order to keep healthcare costs affordable and provide a tangible financial benefit for their employees. Additionally, the report found that 62% of HR leaders expect enrollment in high deductible health plans to increase in the next year. 

As benefits leaders grapple with how to best support organizations in the coming year, the report recommends they review health plan offerings and consider adding a high deductible health plan and HSA option; offer or increase 401(k), HSA or FSA match to help ease employee financial stress; consider adding a lifestyle spending account focused on financial wellness; and work with brokers or benefits providers to better educate employees on how to maximize benefits. 

Related: Trump-Harris debate: Take aways on ACA, private health insurance

While benefits leaders balance a variety of priorities, the report recommends that organizations take a proactive approach to reducing the cost of health insurance, offer benefits with a tangible financial impact for employees and identify and work with providers that offer seamless integration, proactive employee education, benefits bundling and stacked card options and responsive customer support.