
Which Financial Wellness Benefits Do Employees Want?
Financial stressors continue to challenge most employees. And while workers covet financial well-being benefits, many say current offerings miss the mark.
The impact of financial stress
The financial services company Payactiv reports that overall well-being has reached its lowest level in over a decade. Financial concerns top the list of challenges. More than 85% of employees say their current level of financial stress is the highest it’s been.
Research from the benefits software firm Payroll Integrations affirms that most employees are struggling with money:
- Only 36% of employees feel fully financially stable.
- 44% say they are somewhat stable.
- 20% don’t feel stable at all.
An employee-employer disconnect
Organizations continue to prioritize financial well-being. The industry news site BenefitsPRO reports that 95% of employers feel a duty to support employees’ financial wellness. More than 55% of organizations say they will invest more money in financial wellness benefits, and 39% say they will continue to invest the same amount. However, just 8% of employees express interest in their organization’s financial education benefits.
Payroll Integrations highlights a similar discrepancy. Nearly half (49%) of employers say they are fully supporting employees’ financial well-being. Only 28% of employees agree.
Employees are most eager to see better health insurance and retirement plan benefits. The good news is that 40% of organizations plan to invest more in these areas, according to the Payroll Integrations report. However, 41% said they plan to invest the most in financial education. Only 12% of employees wanted more financial education and planning benefits.
Overcoming this gap is critical to supporting your employees and getting more value from your offerings.
Financial wellness benefits employees want the most
According to the lifestyle spending accounts company Espresa, the most successful financial wellness benefits provide a range of resources. This strategy meets employees’ various needs and allows them to choose the most valuable offerings.
Insights from BenefitsPRO, Payactiv, Espresa and the HR solutions firm Paychex show that employees are most interested in the following benefits to enhance their financial well-being:
- Retirement plan access
- Matching contributions
- Health insurance
- Higher compensation
- Student loan repayment programs
- Debt assistance
- Early wage access
- Emergency savings accounts
- Life insurance
- Lifestyle spending accounts
- Health savings accounts
BenefitsPRO recommends surveying your employees to ensure your financial wellness benefits match their expectations. To align financial benefits with employees’ needs, seek feedback and communicate frequently. Ask employees which benefits they use the most, which they find the most valuable, and which they would like to have but don’t.
Though financial education doesn’t rank as high as the benefits above, it can still drive value. Education should connect financial benefits offerings to real-world applications.
Financial education also needs to be timely and relevant to increase engagement. Payactiv notes employees are interested in topics such as:
- Marriage costs
- Home buying and selling
- Family planning
- Higher education expenses
- Illness, injury and death
- Caregiving
- Investment strategies
- Estate planning
Individual and organizational benefits
Impactful financial wellness benefits drive individual and organizational gains. Payactiv reports that 80% of employees think about money challenges during work. This financial stress causes $664 billion a year in lost productivity.
Improving financial wellness can lead to greater focus, productivity, recruitment and retention. According to the management consulting firm PwC, employees with financial stress are twice as likely to seek a new job. By comparison, 66% say they would be more inclined to stay with an organization that offers financial wellness benefits.
For more information on financial wellness benefits, work with your insurance broker or benefits adviser. They can help you explore solutions that meet your employees’ needs and deliver greater returns on your benefits investments.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.