2018 - Best Money Moves

As Recession Looms, Financial Wellness Is The Future

by ryanwangman | Dec 20, 2018 | Blog

After years of American economic growth in the wake of the 2008 housing market crash, experts are increasingly worried that another downturn looms on the horizon. According to a recent CNBC Fed survey, there is a 23 percent chance of a recession in the next 12 months, the highest mark at any point in the Trump presidency and higher than the 19 percent long-run average for the 7-year-old survey.

For the modern U.S. household, there are real causes for alarm.

The Federal Reserve Bank’s latest Report on the Economic Well-Being of U.S. Households found that while economic well-being has generally improved over the past five years, 40 percent of U.S. households still say they cannot cover a $400 emergency expense. Additionally, roughly 78 percent of U.S. workers live paycheck to paycheck, according to a 2017 CareerBuilder survey, including one in 10 workers earning at least $100,000 per year.

Twenty-seven percent of workers globally report severe stress, anxiety or depression over the past two years due to their financial situation, with worsening financial well-being diminishing employee productivity, engagement, and health.

“It’s pretty sobering. People are living well beyond their means,” said Dr. Bruce Sherman, Medical Director for Population Health Management, Conduent HR Services. And for employers, “there is a direct cost and an indirect cost directly related to financial stress: lost productivity, worker turnover, performance, absenteeism and presenteeism. But at least half the costs are associated with poor health.”

The last recession decimated financial security for many employees, with an unemployment rate that peaked at about 10 percent and nearly matched a 1981-82 postwar high. At one point at the beginning of the economic recovery, there were seven people looking for work per every job opening that existed.

Without the right preparation, a repeat scenario could spell disaster for American workers unaware of how to effectively manage and maximize their financial wellbeing. In the case of a life-altering event like the loss of a job, the foreclosure of a home or the forced liquidation of important assets, unsuspecting employees can often be forced to handle serious fiscal situations with long-lasting consequences — and have little to no reliable, unbiased information on which to base their decisions.

As an employer, this is where you can make a difference, easing the financial stress of your employees while increasing productivity and retention and reducing workplace accidents.

In today’s increasingly divisive world there aren’t a lot of things everyone can agree on, but the effectiveness of financial wellness programs seems to be the exception to the rule for employers and employees. A recent Bank of America study found that over 90 percent of employees who’ve participated in workplace financial wellness programs say they’ve been effective, and 95 percent of employers who offer them say that their programs have helped the company to reach its goals.

Employers who have offered them have seen greater employee satisfaction, less employee turnover, improvement in employee productivity and potentially lower healthcare costs for the company.

By giving your staffers the tools they need to take control of their financial lives, not only are you providing a benefit that will boost your bottom line, you’re arming your employees with the knowledge they need to make the best possible decisions when the stakes are the highest.

Best Money Moves is a mobile-first financial wellness program. It combines technology, information, smart tools and live money coaches to help employees measure their level of financial stress in 15 categories, and then sends relevant information and tools to help them reduce that stress.

Employees use the program’s point-based rewards system, which assigns point values to every action possible on the site from setting up income and expenses with the budgeting tool to reading articles and measuring stress. Each month Best Money Moves hosts a global contest with a cash prize for the user who has earned the most points during the month. This ongoing engagement strategy keeps usage at 25 to 51 percent.

Employers can view reports that provide a statistical look at usage, including: unique visitors; minutes online per visit; an overview of those who have measured stress; what categories of stress they’re measuring; money coach sessions; and, a snapshot of the overall financial health of employees. No individual data can be accessed which ensures employee privacy while allowing employers to have an overall understanding of their employees’ financial health.

What sets Best Money Moves apart? We aren’t trying to sell your employees anything and we aren’t a “robo-investment” platform because we believe that employees need unbiased information they can trust.

Learn more about how Best Money Moves can make a difference for your employees by contacting info@bestmoneymoves.com.

What Benefits Do Employees Want in the New Year?

by LizStevens | Dec 20, 2018 | Blog

What benefits do employees want in the new year? Employees want benefits that support employees’ diverse needs like transgender-inclusive healthcare benefits, fertility assistance and pet perks.

Over 30 percent of employers increased their benefits in 2018, according to research by the Society for Human Resource Management (SHRM), a trend likely to carry over into 2019 as employers continue to wrestle with low unemployment.

Healthcare benefits have been a hot topic this year, but healthcare regulation is in flux and as costs soar across the board, cost-management has become a priority. According to the International Foundation of Employee Benefit Plans (IFEBP), employers are looking to solutions like telemedicine, nurse advice lines and healthcare claims utilization analysis to help rein in expenses. Wellness programs that help employees improve physical, emotional and financial health have also skyrocketed in popularity as another way to manage burgeoning healthcare costs.

New healthcare benefits are going to be equally important in 2019. Employees have a wide range of needs and company culture/inclusivity are factors that future candidates are likely to take into consideration when evaluating job offers.

Employers have started to meet the demand for diversified healthcare benefits. The IFEBP found nearly 30 percent of employers now offer transgender-inclusive benefits, like coverage of sex-reassignment surgery or subsidies for cosmetic procedures, such as electrolysis, mastectomy and Adam’s apple reduction surgery. Employers are also adding more fertility benefits. Close to 20 percent of companies offer financial assistance for adoptions, egg harvesting/freezing, fertility treatments and counseling.

Another big benefits trend in 2018 that’s likely to carry over into 2019 is the rise of pet perks. SHRM found nearly 10 percent of organizations now allow pets at work or offer pet health insurance. Some companies have gone as far as offering paid time off or the flexibility to work from home for employees who adopt a pet, referred to affectionately as ‘paw-ternity leave.’

While healthcare cost-management and benefits inclusivity are industry trends likely to see more growth in 2019, that doesn’t mean they automatically make the most sense for every employer. Employee benefits engagement is difficult and under-utilization is often an issue employers need to strategically tackle. Including employees in the benefits selection process, whether it be through polls or surveys or direct employee involvement in meetings, will help employers offer benefits that make the most meaningful impact in the lives of their employees.

How to Make Traditional Work Better for Freelancers

by LizStevens | Dec 18, 2018 | Blog

How do you make traditional work better for freelancers? Freelancers have traditional jobs too and what they want to get from them is predictable income flow and the flexibility to continue their freelance work.

More than one in five freelancers are also employed at established companies and for most, their traditional job is their primary source of income, according to recent research by FlexJobs.

Freelancers and others working in the gig economy are looking for flexibility from potential employers. Striking the right balance between structured work and flexible work arrangements is important for employers who want to stay competitive because unemployment continues to hover at a historic low.

Research by Edelman Intelligence found some form of formal employment is necessary for most freelancers because, in most cities, the average freelancing rate falls well below the compensation needed to afford an apartment independently, and in some cases, even with a roommate.

If freelancing isn’t enough to cover basic housing costs, why are more than 57 million Americans still doing it? More than 90 percent of FlexJobs’ survey respondents said the freelancing lifestyle is important to them because of benefits like a flexible schedule, work-life balance, no commuting, self-development and the freedom to choose where they work. Over 60 percent of freelancers said it had a positive impact on their overall quality of life. Freelancing helped them become healthier, less stressed and they’re either less financially stressed or feel no difference from when they worked in a traditional job.

The two biggest challenges for freelancers are finding clients and having predictable income flow. They also struggled with handling the business aspects of freelancing (taxes, insurance, etc.), getting payment from clients and dealing with the perceptions of freelancers.

Employers likely already have at least one freelancer in the office, though they might not know who it is, because nearly 35 percent of GenXers and Baby Boomers and over 20 percent of Millennials are in the freelance workforce. And most of them aren’t entry-level employees either, more than half of freelancers described themselves at the intermediate or management levels of their careers.

Traditional jobs help freelancers gain predictable income flow but complicate their work-life balance. A normal job could limit the scope of projects they can take on, their availability to meet deadlines and limit timeframes they can meet with potential clients. Finding additional flexibility for freelancers who need it can build company loyalty and boost job satisfaction. Most freelancers are going to need a traditional job to afford housing costs, so why not employ them, give them the flexibility they need and benefit from their tenacious skill set?

What Tops Financial Stress for Employees?

by LizStevens | Dec 11, 2018 | Blog

What tops financial stress for employees? Retirement and student loan debt, among other financial issues, worry employees enough to inhibit productivity, but financial wellness programs can help them take control and regain focus at work.

John Hancock released their annual Financial Stress Survey this week and the findings are worrisome. An overwhelming majority (69%) of American employees experience financial stress. Over 70 percent of them worry about personal finances at work (costing employers up to $2,000 annually per employee in lost productivity).

High levels of financial stress manifest through physical symptoms like anxiety, lack of sleep and a feeling of being overwhelmed. Nearly 90 percent of workers feel there is a social stigma associated with not being financially well, which could motivate them to conceal symptoms of financial stress.

Employers might not notice when employees are highly stressed about finances if they hide it well, and finances aren’t a topic employees are comfortable bringing up with their supervisors. Surveys like these give insight into how employers can better help employees by targeting the issues that affect them most through effective financial wellness programs and benefits.

What Tops Financial Stress for Employees?

Close to 80 percent of employed Americans are concerned about retirement savings and student loan debt. More than 60 percent of workers are concerned with keeping up with basic expenses, like monthly rent payments. Others are stressed about their overall financial situation and a lack of emergency savings.

Most Americans think getting financial advice at work would reduce their stress and more than 60 percent believe it would help them start saving more for retirement. Employees think employers can help them most with financial issues like retirement income preparation and Social Security and Medicare claiming. Roughly 30 percent think employers can help them with debt counseling or buying a house.

Employers recognize today’s American employees experience high levels of financial stress and are looking for ways to improve health and wellness offerings in this vital area. New solutions, like the creation of HRAs, and the rise of student loan benefits help employees deal with specific financial issues and have the potential to be incredibly successful in their respective areas. Their specificity is also a drawback. Employees in poor health or without student debt won’t benefit from those solutions, but they’ve surely got their own unique financial stressors.

Expansive financial wellness programs that give employees the tools and support to improve the issues affecting their overall financial wellness, versus those that tackle singular financial issues, are likely to make the most difference. Employees are able to reduce their financial stress by using and applying knowledge from their financial wellness program and eventually, will start to reach their financial goals.

More on Financial Stress and Financial Wellness Programs

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

What’s Wrong With Wellness Program Incentives?

by LizStevens | Dec 4, 2018 | Blog

What’s wrong with wellness program incentives? ROI isn’t proven, employees feel forced into participation, and worse, wellness programs can increase weight-based discrimination and stigma in the workplace, which results in increased obesity and decreased well-being.

Workplace wellness programs have long been criticized as ineffective and lacking ROI, but financial incentives for wellness program participation are even more controversial.

Depending on what the financial incentive is, failing to participate could cost an employee hundreds or thousands of dollars. It then becomes a question of whether participation is truly voluntary, or if employees are being coerced.

The Equal Employment Opportunity Commission (EEOC) set a limit for what employers could offer employees to join in on wellness programs in 2016 (30 percent of an employee’s health insurance costs). Earlier this year, a judge vacated that arbitrary limit and the EEOC said it would not produce a new number until 2021.

That means there aren’t specific guidelines for employers putting together next year’s wellness benefits to follow. It’s worth considering whether incentivizing program participation is a good idea or just a waste of money.

New research from Frontiers in Psychology found wellness programs can actually lead to increased obesity and decreased well-being. Programs that put the responsibility on employees made them believe their weight is blameworthy. It led to increased weight-based discrimination and stigma in the workplace, a consequence surely no employer intended.

Wellness programs framed from an organizational standpoint were able to avoid increased stigma. What does that look like? An employer providing healthy snacks, standing desks, or offering reimbursements for gym memberships gives employees opportunities to improve their health without shaming them, versus ‘biggest loser’ challenges that are sure to make employees more self-conscious and could fuel disordered eating habits.

Employers look to wellness programs to reduce astronomical healthcare costs and take back some of the $530 billion that poor employee health costs in lost productivity from nearly 1.4 billion days of missed work each year. However, most employers now realize offering wellness programs isn’t enough. Employee engagement with wellness benefits is low, which is why providing a financial incentive for participation seems like a great idea (and in some cases, it still can be).

Nearly 20 percent of employees are either unaware of or don’t understand how to use the wellness benefits their employer offers. Clear benefits communication is vital to program success, and a process to improve before offering financial incentives for participation. Employees need to know what’s being offered, and more importantly how it works and who to contact if they have questions.

Unless conflicting research emerges proving significant ROI for employers who provide wellness benefits initiatives, employers are better off spending those funds elsewhere. A focus on improving benefits communication and creating a culture that encourages healthy habits has the potential to boost job satisfaction, productivity and reduce employer healthcare costs. Organizational and procedural changes might require some effort, but they’re low-cost solutions to the issue of benefits engagement.