Around 77% of American households have debt, and the average individual has around $58,600 in debt. In the workplace, 9 out of 10 employees are worried about finances, with 75% stating financial concerns negatively affect their productivity. Fortunately, employers can alleviate some of this strain by boosting their financial wellness programs.
Tax-saving benefits
Employers can offer 401(k) programs and health savings accounts (HSAs) which allow employees to set aside money pre-tax. Additionally, employers can match 401(k) contributions or contribute to HSAs. While offering these accounts and programs are beneficial, it is also important that employers provide education, informing on the advantages of these benefits and how to use them.
Employee Assistance Program
Employee assistance programs (EAPs) assist employees in managing a variety of issues like childcare, relationship challenges, legal concerns, and more. Many offer resources and support regarding financial matters. When employees have significant monetary burdens, their mental and emotional health can suffer as well, and an EAP can help in all of those areas.
Employee Wellness Program
Some wellness programs lower medical plan premiums for those that actively participate. Additionally, wellness programs motivate employees to make healthy choices, saving money in the long term. Employees who stay up-to-date with their preventative care are less likely to need costly emergency medical procedures.
Student Loan Assistance
Many individuals have substantial student debt. Providing student loan assistance can help relieve some of the strain. An organization that offers loan assistance as a part of its employee benefits package will attract more college-educated talent.
Financial Coaching and Planning Services
Employers can also provide financial coaching and planning to ensure their employees feel more secure and supported. Financial planning focuses on long-term security, emphasizing wealth management and investment. Financial coaching offers budgeting, saving, and credit management advice. Since the pandemic, employees have used both services around 20% more.
There are a variety of options employers can implement to boost their financial wellness programs. If you have any questions about the available possibilities, please contact your dedicated Creative Benefits, Inc. team member.