Economic and market indicators appear to be stronger than anticipated. Stocks are up, unemployment is down, wages are growing faster than the rate of inflation, and the GDP appears to be on a healthy trajectory—projected growth estimates are at 3.4%.
Despite these positive trends, observed in a recent BenefitsPro article, employees are experiencing more financial stress than ever. Inflation, although declining, has Americans pinching every penny and living paycheck to paycheck; layoffs continue to dominate the headlines; and political tensions domestically and abroad are a breeding ground for uncertainty. Although hiring appears to have slowed, 85% of employees (95%, according to this source) anticipate switching jobs this year.
While benefits like health insurance and retirement plans “have become table stakes,” according to the same article, financial wellness benefits are of particular importance in helping employees reduce money stress and experience a sense of overall well-being and security. In particular, SECURE 2.0 made it possible for employers to offer matching contributions for student loan repayments. “Under this provision, employers can contribute to an individual’s retirement account based on his or her qualified payments toward their student loan balance. Every pay period, the employee can not only take an important action to manage their own financial life but can also see their employer supporting their financial wellbeing,” according to BenefitsPro.
These contributions can go a long way toward boosting employee satisfaction and engagement, along with encouraging retirement plan participation. Other opportunities to boost employees’ long-term financial well-being are benefits such as emergency savings accounts and interest-free loans. These “can have a palpable impact on employees’ lives in the short-term, getting them through difficult times and preventing them from racking up credit card debt or turning to predatory payday loans,” the BenefitsPro article noted.
A separate BenefitsPro article touted “free money” (their words, not ours) employee benefits that employers can leverage to help employees build financial security for today and tomorrow—not to mention providing a boost to their total compensation package. These include 401(k) matching contributions, tuition reimbursement, employee stock purchase plans (ESOPs), employee discounts, and charitable matching contributions.
Some might say it’s an employers’ market, and with the majority of workers planning to switch jobs in the next 12 months, companies will have no shortage of candidates to choose from. Nonetheless, candidates are more likely to accept a job offer when their prospective employer offers benefits that clearly demonstrate their commitment to investing in employees’ financial well being. So shout those key benefits from the rooftops, dear employers, and let today’s workforce know you’re putting their financial security first. By prioritizing financial wellness and showcasing that you offer a complete benefits package, you’ll attract and retain top talent while fostering a thriving workplace.
