By Steff Chalk
We may not all agree that the needs of the worker are inextricably connected to the needs of the employer. We also may not agree that the values of an employee need to be aligned with the corporate culture of an organization. However, there is great difficulty in attempting to mount a solid argument that the financial health of an employee does not have a measurable impact on worker productivity and ultimately the viability of a company. Now we are presented data where satisfying employer-employee needs goes well beyond a paycheck alone.
According to Jan Bruce, CEO and co-founder of Boston-based meQuilibrium, “…78% of employers think stress is an issue among their employees.” Employers are noticing the manifestation of stress in several ways, including lowered engagement, increased absence, lowered productivity and wellness programs with low participation and low success rates.
Over 50% of quantifiable measures of stress can be attributed to financial woes. This contributes to increased stress. Money is not the cure for all of the stress related factors – but it is documented that financial fitness can alleviate stress associated with relationships, anxiety and personal security. Although it is normally thought of as a Long-term asset the tax qualified 401(k) retirement plan can offer Short-term and Immediate relief for the stressed worker, in the form of structure.
The early 401(k) plans were not designed for or intended to be the primary source of retirement income for workers in the 1970s and beyond. This is evidenced by both the ridiculous moniker used to describe the cash or deferred arrangements – that would be the U.S.Tax Code Section 401(k); in tandem with the absence of a congressional team taking credit for the idea – like a Gramm Rudman, Dodd Frank or Portman Cardin. But with over $3 trillion in 401(k) plans and much more in IRAs – spawned from 401(k) plans, one must realize the unquantifiable daily-benefit that emanates from these plans.
