2 minute read
Money is a top stressor for employees. Many are concerned about covering their living expenses and unexpected financial emergencies. When employees experience financial stress, employers may see lower employee productivity, morale, and higher absenteeism.
Employers are uniquely poised to help support employees with much-desired financial guidance and resources. Here are some ways that employers can offer financial safety nets for employees:
Life insurance is an important asset for future financial security, although many employees may not realize it’s importance. Educating employees about its value may increase loyalty to the organization.
Disability insurance is a valuable part of a comprehensive employee benefits package and can fill in gaps in financial protection, like Social Security. Disability offers income replacement benefits and provides employees with peace of mind.
Saving for retirement is a key component of an employee’s financial security. Offering a 401(k) account or other retirement benefits can increase employee loyalty, especially if employers offer a contribution match. Good retirement benefits are also a good recruitment and retention tool.
Employees with access to financial education and tools are more likely to increase their savings and make progress toward their financial goals. Employees with a plan or access to help are less likely to feel stressed or overwhelmed by their financial situation.
Many employees may be suffering from student loan debt. Employers can offer various forms of support like loan repayment, loan counseling, debt consolidation, and refinancing services.
Many employees may not have money set aside in case of an emergency. Even small contributions can help employees build peace of mind and resources for unexpected expenses. Employers who help their employees build emergency savings funds may boost their workers’ confidence in navigating finances and increase happiness in the workplace.
Having a financial safety net can provide peace of mind to employees. As more employers find ways to help employees save for unexpected financial emergencies, they can offer benefits that assist them in achieving their financial goals and save more of their hard-earned money. Download the bulletin for more details.