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Financial well-being is the state in which a person is able to meet their current and ongoing financial obligations, feeling secure in their financial future, and make choices that allow them to thrive.
Financial matters are a leading cause of stress for employees and a major distraction at work. According to a recent PwC survey, 58% of employees admit that they’re stressed about their finances. Employers have a unique opportunity during the pandemic to support employees and help to alleviate some of that stress so that they can better focus at work. As a result, the workforce could experience higher engagement, increased productivity, fewer absences, and improved health and well-being.
Employers can play a key role in supporting the financial well-being of their employees and should consider the following ways to improve employees’ financial literacy.
Promote Financial Resources, Including Employee Assistance Programs (EAPs)
Financial guidance and assistance are often components of an EAP. These services can connect employees with help to improve their financial well-being including heathy spending habits, budgeting advice, debt repayments, and setting up an emergency fund.
Financial Well-being Education
Employers can share financial literacy content and consider initiatives to help educate employees about financial well-being. Topics could include student loans, financial goals, credit, and retirement.
Employers should remind their employees about all the available benefits and highlight perks that can offer financial relief or savings. This is important whether the benefits have changed or not.
Now is the time for employers to be patient with employees’ personal situations and be flexible if needed. Leadership should be transparent about how the organization is performing. Financial support efforts should be incorporated into an organization’s internal communication initiatives.
Employers should continue to review and adjust their benefit offerings so that they align with employees’ evolving needs. Benefits that may impact employees’ current financial challenges may include student loan payback programs, discount programs, retirement plans, or life and disability insurance.
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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.