One of the significant problems that can affect your employees’ health is their finances. During COVID, when some employees or their spouses faced temporary lay-offs, reduced hours, or were permanently laid off, many households faced financial strains immediately. Stress, anxiety, and depression took a huge toll on many individuals because of their finances. Unfortunately, employees who are on unstable financial ground will not perform at their best, and in some cases may not be able to work at all. Therefore, financial wellness should play a role in how companies try to encourage and facilitate overall wellness for their employees.
Financial Wellness Benefits
Financial wellness is now a hot topic and has become a growing concern for employers. Adding financial wellness benefits over the next one or two years is now a priority for 48% of companies according to a LIMRA study, “What’s Next for Workplace Benefits: Prioritized, Personalized, and Positioned for Tomorrow.” The study also shows that overall financial knowledge is relatively low amongst the majority of employees. Just 1 in 8 people have a high level of financial literacy, 4 out of 10 worry about job security, 4 out of 10 worry about their ability to save for retirement, and over a third worry about affording necessities. That’s a lot of worry on top of health concerns during the pandemic.
Employers now more than ever, see the necessity to provide a financial wellness program to their benefits. Some aspects of that type of program could begin with foundational guidance and solutions such as:
- Financial awareness assessment
- Action planning
- Financial literacy education and tools
- Cash and debt management
- Individual investing
- Insurance protection
- Retirement planning
COVID-19 has focused attention on solutions like:
- Emergency savings accounts
- Debt counseling
- Payroll advances
- Caregiving benefits
Overall, the goal for employers is to inspire the workforce to take actions with their finances that will reduce their anxiety and stress levels, and provide the support they need to get onto a solid financial track. One solution that many of our clients have been focusing on to assist in providing financial support is the Group Registered Retirement Plan. Not only can the employee start saving for their future monthly through payroll deduction, but the Employer can consider contributing to those savings! Stay tuned for information on the benefits of the Group RRSP in an upcoming HRS Blog!
Health Risk Services works with plan managers to continually adapt their plans to meet the changing times, new opportunities, and needs of their employees while managing their company budget. We know how to find the best possible solution for both the employees and the employer in crafting financial wellness benefit plans.
We would like you to know more about how Health Risk Services can assist you with a 2021 plan to expand financial wellness benefits, so please schedule a Complimentary Consultation with us.