5 Industries That Desperately Need Financial Wellness Solutions

5 Industries That Desperately Need Financial Wellness Solutions

With the pension era over and Social Security projected to be tapped out within two decades, employers in every industry are stepping up efforts to help ease financial stress on employees by providing desperately needed financial wellness solutions.

This is smart: The majority of Americans report that money is a “somewhat or very significant” source of stress, with parents and younger adults reporting high levels of financial stress, according to the American Psychological Association.

The issue is bleeding into the workplace as nearly half of employees report that financial challenges cause the most significant stress in their lives, according to the 2017 Employee Financial Wellness Survey. “Stressed employees are found to be less productive, take more time off to deal with financial matters, are more likely to leave the company for higher compensation, and are more likely to cite health issues caused by financial stress,” the survey reported. This shows “a direct correlation between an employee’s financial well-being and a company’s bottom line.”

That’s why savvy companies are adding and boosting financial wellness benefits as a win-win. Nearly 60 percent of employers are “very likely” to and another third are “moderately likely” to focus on the financial well-being of workers beyond retirement decisions, according to Aon’s 2017 Hot Topics in Retirement and Financial Well-being report. While the subject has been on the radar for several years, more than half of employers say the importance has increased in the last two years.

Here are some fields where adding financial well-being programs can be particularly effective:

  1. Healthcare. These professionals may be struggling with large amounts of debt while juggling nontraditional hours. In some cases, student loan bills can equal or top a mortgage.
  2. Nonprofits. This sector has a bottom line focused on change, so employees may be paid less, grapple with modest resources and be asked to juggle tasks beyond their job description. Meanwhile, many nonprofits constantly seek new and additional funding, which can make the future unstable.
  3. Startups. Building a startup is hot, but keeping them running can be stressful. What’s more, employees may need to figure out stock options and, in some cases, how to properly manage a sudden windfall.
  4. Retail. These workers largely deal with wages lower than $10 an hour and sporadic schedules. With average rental rates nationwide topping $1,200 a month, paying the rent requires significant work.
  5. Manufacturing. This sector’s employers may be stressed about looming automation and the increased need for college degrees. Factories also continue to close nationwide, creating additional concerns.

Dawn Wotapka is a financial writer.

What is Financial Toxicity?

What is Financial Toxicity?

In the Best Money Moves Roundup, we run down the latest news on student loan and retirement assistance, the benefits of biking and artificial intelligence in the workplace.

If you ever wondered if there was a direct link between financial stress and health outcomes, look no further. According to research compiled by Managed Care, Americans are skipping medications that could improve their quality of life because they can’t afford them.  The term financial toxicity was coined by Amy Abernathy, MD, in an essay for the journal Oncology.  “Out-of-pocket expenses related to treatment,” she wrote, “ are akin to physical toxicity, in that costs can diminish quality of life and impede delivery of the highest-quality care.”

The truth is many employees need help navigating healthcare benefits to lower out of pocket expenses and avoid , “financial toxicity.”

What can you do about it?

What We’re Reading

Employer tackles student loan debt and retirement. When employees contribute 2% of their salary to paying down student loans Abbott Laboratories will pay the equivalent of 5% of an employee’s salary to to their 401(k). Learn more about their Freedom 2 Save program.

Happier, healthier employees. An initiative in France incentivising employees to bike to work led to a 15 percent reduction in sick leave, lower transportation expenses, less stress and higher job satisfaction. See how it worked.

Would you trust orders from a robot? More than 90 percent of workers responding to a recent study would, but progress is slow when it comes to companies adopting and preparing for artificial intelligence in the workplace. Read the full results breakdown.

Open offices lower direct communication. Recent studies found that email and instant messaging conversations increase significantly, productivity declined, and face-to-face interaction decreased when offices transitioned to an open landscape. Why this happens and how it relates to insect behavior.

Help Millennials secure their financial wellness. Nearly 70 percent of millennials are stressed about their finances. Help them get on track and back to work. Share this quick tipsheet with your employees.

A simple gesture to support employee’s mental health. With recent rises in mental illness and suicide employers cannot avoid addressing mental illness any longer. A memo like this is a good start.

On-demand health insurance. A new startup offers employees a core set of health care benefits and the option to add coverage for specific procedures. Is this the future of insurance benefits administration?

Have something to add? Email info@bestmoneymoves.com.

A Lack of Healthcare Benefits is Causing Financial Toxicity

A Lack of Healthcare Benefits is Causing Financial Toxicity

A lack of healthcare benefits is causing financial toxicity for employees across the country.

If you ever wondered if there was a direct link between financial stress and health outcomes, look no further. According to research compiled by Managed Care, Americans are skipping medications that could improve their quality of life because they can’t afford them.  The term financial toxicity was coined by Amy Abernathy, MD, in an essay for the journal Oncology.  “Out-of-pocket expenses related to treatment,” she wrote, “ are akin to physical toxicity, in that costs can diminish quality of life and impede delivery of the highest-quality care.”

The truth is many employees need help navigating healthcare benefits to lower out of pocket expenses and avoid , “financial toxicity.”

A recent study by Willis Tower Watson found that those with high levels of financial stress were twice as likely to have poor health as opposed to those without financial stress. And the longer employees go without treating illnesses the more business is affected by lost productivity and absenteeism.

Adams Dudley, MD, a pulmonologist, and Director of the Center for Healthcare Value at the University of California-San Francisco is concerned about the prescription crisis we’re facing and said that, “This problem definitely impacts the lives of patients. They’re skipping medicines or skipping other things to buy medicines.”

As a prescriber, Dudley finds difficulty distinguishing what patient pays how much for the same drug because insurance coverage varies greatly, “These days price is such a weird thing. If I give one patient Spiriva [a bronchodilator], the cost could be $10. For another patient, it may be $200 a month. And I don’t get good information about which patient is which.”

Michael A. Evans, Vice President of Enterprise Pharmacy and Chief Pharmacy Officer of Pennsylvania’s Geisinger Health System shares a spreadsheet with prescribers of available medications for a patient’s condition along with the average wholesale price (AWP) of each medication to help prescribers lower patient costs. Evans said that for prescribers, “It’s been quite eye-opening for them, helping them better understand the cost burden on the patient in front of them, and it has definitely affected their prescribing habits. We get responses like, ‘Wow! I had no idea medication A I gave was so expensive. I could certainly use medication B.’”

Evan’s cost transparency sheet offers a solution to the problem Dudley describes, but a drawback is that the AWP is the cost of the drug to the health plan and the patient combined. This makes so it difficult to determine the patient’s actual expense.

Dudley points to another pertinent issue in healthcare, the discrepancy between the cost to make a medicine and the price it sells for. He says, “To many people, $160 is a lot of money. But almost anyone would rather spend it taking the family to dinner than paying for a medicine that cost three dollars to make.”

Employers can help address out-of-pocket costs for prescriptions by being knowledgeable about insurance benefits they offer, updating employees on any changes and asking for feedback to see if the current program is meeting their coverage needs.

Millennial Employees’ Lifestyles Depend on Side Hustle

Millennial Employees’ Lifestyles Depend on Side Hustle

A recent survey from Bankrate shows that Millennial employees are increasingly taking on side hustles to save money and keep up with rising living costs.

It turns out that having one job doesn’t always make ends meet.

Millennial employees across America are taking on second jobs — more commonly called “side hustles” — to pay their regular bills each month, according to the latest research.

Nearly four in ten Americans have a side hustle, and they earn about $700 a month on average from these second jobs, according to a recent survey from Bankrate. But for Millennials, the numbers are even higher. More than half of Millennial employees are partaking in the gig economy, reaping extra income from their efforts, according to the survey.

Kathy Kristof, an award-winning financial writer who runs the site $ideHusl, said taking on a second job can help people save money and keep up with rising costs. $ideHusl is a website that consolidates information about various opportunities in the gig economy and scores them according to a proprietary rating system. Sample side hustle offerings featured on the side include tutoring and driving gigs as well as opportunities to take care of elderly patients, cook for families, or rent out parts of your home or even its furnishings.

The biggest appeal of a side job, Kristof said, is the money.

“With Millennials, I think a lot of them graduated college with a lot of debt,” Kristof said. “The Millennial generation is also extremely entrepreneurial. They’re looking for various ways that they can work for themselves, either full- or part-time. A side hustle is a good way to start.”

The Bankrate survey found that a majority of respondents considered money earned from side jobs as disposable income, and they work these odd jobs inconsistently. Only 11 percent of respondents indicate that they work their side jobs on a weekly basis.

Deloitte, a professional services network, and Prudential, a financial services company, also recently released surveys that both echoed BankRate’s survey findings as well as revealed other trends about the gig economy, including:

  • Deloitte found that having flexible hours and a better work/life balance were among the top reasons for why people would consider joining the gig economy;
  • On average, the Prudential survey found that gig-only workers earn only about 58 percent as much as traditional full-time employees annually, though the survey acknowledged that gig workers only put in a median of 25 hours per week, compared with a standard 40-hour work week for full-time employees;
  • Fewer than 20 percent of Millennial respondents in the Deloitte survey outright rejected the idea of taking on short-term contracts or freelance work to supplement or replace existing full-time employment;
  • 62 percent of Millennials in the Prudential survey believe it is somewhat or highly likely that over the next 30 years, traditional full-time employment will largely disappear, and freelance jobs will come up in its place;
  • 62 percent of millennials who would consider gig employment cited a need for “increased money/income,” according to the Deloitte survey.

Kristof predicts that the gig economy will continue to grow at a rapid pace, and that America’s workforce will have an increasingly difficult challenge to differentiate between great side hustle opportunities and platforms with exploitive terms and conditions. She encourages anyone looking to get into the game to research different offerings before wasting time or putting assets at risk.

“There are gigs in almost every industry, so look for what you really like to do, because you can find something that you like and something that will pay well, all at the same time,” Kristof advised. “And that’s kind of the ideal, right?”

 

Most Employees Think Companies Aren’t Prepared for This

Most Employees Think Companies Aren’t Prepared for This

In the Best Money Moves Roundup, we run down the latest news on traumatic incidents in the workplace, pet perks, and payday advances.

Employees need support and guidance after traumatic events – like the sudden loss of a colleague or a natural disaster – but only 26 percent of workers are getting it.

Most employees surveyed by Workplace Options (WPO) have worked for an organization that experienced a traumatic event. More than half of them said that a disaster recovery plan (DRP) or business continuity plan (BCP) wasn’t in place to help employees affected by the event – or if there was nobody told them about it.

DRP’s are a valuable benefit for nearly 70 percent of employees and should be a priority for  employers. It’s estimated that less than half of employers have a DRP or BCP plan in place, but they’re critical for dealing with disasters.

See Exactly How Hard Poor Preparation Hits Businesses

What we’re reading:

Office pet perks? Corporations are starting to bring in pets for occasional office visits to reduce employee stress, Amazon even allows employees to bring their dogs to work daily. Learn about the psychological benefits of pet perks.

Employer payday advances. Early access to pay is a financial perk that could make employees happier, but is it a good idea since most Americans are already struggling to save? See for yourself.

Wellness initiatives lower diabetes. New research found that those who tested as diabetic or prediabetic had normal blood levels after participating in an employer-sponsored wellness program. Combat rising healthcare costs.

Exits are opportunities in disguise. Whether you collect information from a departing employee through an interview or survey, it’s important that you obtain their feedback. Mitigate future turnover risks and costs.

Empathy is key. Employees would be willing to leave their job for a more empathetic employer, so respect is still crucial for job satisfaction. Find out what the C.A.R.E. model is and how it can help employers be more empathetic.

Discover joins tuition trend. Degree assistance has been a hot employee benefit this summer and Discover plans to join in by offering the majority of employees (even new hires) full rides for bachelor’s degrees at several schools. More on this developing benefit.

Your employees need more than a vacation. Stress dissipates on vacation, but for most employees it comes back in full force the second they get back to work. How to address the larger problem.

Have something to add? Email info@bestmoneymoves.com.