2020 - Page 4 of 12 - Best Money Moves

COVID-19 Retirement Impact: Early Withdrawals and Reduced Contributions

by LizStevens | Aug 26, 2020 | Blog

COVID-19 retirement impact: early withdrawals and reduced contributions. How employees are using their retirement savings during the coronavirus pandemic.

Retirement savings were identified as a source of financial relief in the thick of the coronavirus pandemic when the CARES Act expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans.

Luckily, only 2.8 percent of employees made an early withdrawal during the first half of the year, according to research by the Investment Company Institute.

“We see a slight increase in withdrawal activity following the onset of economic volatility and hardship, but the increase is much smaller than you might expect, given the severity of the COVID-19 economic downturn,” said Sarah Holden, ICI senior director of retirement and investor research.

Retirement contributions, however, weren’t as fortunate. Over half of employees changed their retirement contributions or plan to do so soon, with 23 percent already contributing less, according to research by MassMutual.

COVID-19 Retirement Impact: Early Withdrawals and Reduced Contributions

Employees told MassMutual these are the primary reasons they’re making changes to their retirement contributions:

54 percent reduced contributions to have more cash on hand
22 percent plan to contribute more to take advantage of market fluctuations
24 percent plan to contribute the same amount but change their risk exposure

Nearly 40 percent of employees recognize that they need to make saving for an emergency a priority because they found themselves unprepared for the pandemic. Reducing retirement contributions could allow them to start building the emergency savings funds they need.

Another survey by Freedom Debt Relief at the start of the coronavirus pandemic highlighted the financial obligations employees were most concerned about:

45 percent worried about missing rent or mortgage payments
38 percent worried about missing utility payments
30 percent worried about missing health insurance premiums or student loan payments
36 percent worried about carrying a balance on their credit card for groceries
21 percent worried about carrying a balance on their credit card for utilities
18 percent worried about carrying a balance on their credit card for TV/Internet

Reducing retirement contributions can help employees catch up on missed payments and halt excessive credit card use, but it comes at the expense of their plans for retirement.

COVID-19 Retirement Impact: Retirement Outlook

A whopping 70 percent of employees report that the pandemic has made them more pessimistic about their retirement plans, according to research by The Alliance for Lifetime Income. That percentage is more harrowing when it’s considered that the survey sampled those with a minimum of $100,000 in assets. Only 33 percent of them are confident they’ll have enough to cover all their expenses in retirement and 20 percent have decided to retire later than initially planned.

Financial Stress and How Best Money Moves Can Help

Employees at every career stage are experiencing unprecedented levels of financial stress during the coronavirus pandemic. They need help navigating the financial challenges the crisis has presented and they need guidance to help them get back on track to reach their financial goals.

Best Money Moves is a mobile-first financial wellness program with the knowledge and support employees need to help them reduce their financial stress and live their best financial lives. It has a library of over 700 calculators, articles and videos as well as a budgeting tool that does the math to tell workers what their neighbors are spending in the same category. Plus, Best Money Moves is gamified, featuring a point-based rewards system where users earn points every time they log in, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

Sign up for a demonstration here to learn how Best Money Moves can bring financial wellness to your company.

The Caregiver Crisis at Work During the COVID-19 Pandemic

by LizStevens | Aug 19, 2020 | Blog

The caregiver crisis at work during the COVID-19 pandemic. Parents need flexibility from employers to balance work duties and caretaking as many districts continue with virtual learning.

More than half of parents who quit their jobs and filed for unemployment benefits this spring said closures of schools and daycare facilities due to the developing COVID-19 pandemic forced them to quit, according to research by Morning Consult for the Bipartisan Policy Center.

Caregiving duties stand in the way of nearly 60 percent of parents returning to work, 41 percent of them specifically citing school closures. Parents said they would be more likely to return to work sooner if they had access to paid leave, or if they were able to work on a flexible schedule.

In light of the caregiver crisis, which is raging once again as many schools plan to continue virtual learning this fall, Mercer identified a number of creative strategies employers can use to provide meaningful support to working parents facing this difficult situation.

The Caregiver Crisis at Work During the COVID-19 Pandemic

Parents are torn between caregiving and their careers. Sixty percent of parents agree it’s better to open schools later to minimize infection risk, even if students miss out on academics and social services and some parents will not be able to work, while nearly 35 percent say it’s better to open schools sooner so parents can work and kids can get services, even if there’s some risk of infection, according to a recent survey by the Kaiser Family Foundation.

If schools do remain closed, 51 percent of parents worry about losing income if they can’t go to work and 47 percent worry about not being able to pay enough attention to their children if they’re working from home.

Strategies to Support Working Parents and Caregivers

Mercer identified two areas of increased flexibility where employers can provide meaningful support to caregivers in their post on Creative Ideas to Support Working Parents During the Caregiver Crisis.

Flexibility at Work

There are several ways employers can offer parents some flexibility at work. Flexible scheduling, where employees have some control over when and how they get their work done, is the most popular option. Compressed workweeks, where employees work more hours in fewer days (for example, 40 hours in 4 days), could help employees who are dealing with hybrid school schedules. Allowing job sharing or reduced schedules could also provide employees with additional time to care for children, but it’s typically associated with a reduction in compensation.

Flexibility from Work

Consider how employees might be able to use PTO, vacation or sick leave, Family Medical Leave (FML) or other company leaves, then remind employees of the available programs and how they work. Some employers are also creating emergency COVID-19 pandemic paid or unpaid leave programs that allow employees to maintain income and benefits for a specified duration of time during the pandemic. When taking into consideration leave programs during the COVID-19 pandemic, it’s also important to review return protocols for employees who take leave intermittently or in blocks.

The COVID-19 pandemic has created a complex caregiving crisis. Parents shouldn’t have to choose between employment and their children’s safety and employers shouldn’t lose top talent to school closures. Identifying ways your organization can provide the flexibility Mercer recommends to support working parents is crucial until a vaccine for COVID-19 is readily available.

How to Build Remote Work Culture to Support Virtual Teams

by LizStevens | Aug 12, 2020 | Blog

How to build remote work culture to support virtual teams. Four key factors employers should focus on when building a remote work culture.

Employees aren’t ready to rush back into the office just yet. Half of them, understandably, are still worried about the risks of COVID-19, according to a recent survey by Korn Ferry.

The good news is that nearly 65 percent of workers think they’re more productive at home anyways. In fact, roughly 75 percent of employees said that they’ve been able to maintain or improve their productivity at home in another survey by Boston Consulting Group (BCG).

The most challenging part of switching to a virtual workforce is building a remote culture that keeps employees connected and allows for fluid communication and collaboration at all levels.

How to Build Remote Work Culture to Support Virtual Teams

Strong remote work cultures streamline communications to help keep teams connected and on task. BCG recommends employers implement new systems, norms, and technologies to support four key factors (social connectivity, mental health, physical health and workplace tools) that build a strong remote work culture with success strategies including:

Identifying ways to maximize social connectivity among employees
Creating awareness, tools, and benefits that support the mental and physical health of all employees
Investing in and building capabilities to use the technologies, tools, and systems that enable employees to work and collaborate remotely
Measuring employee productivity in conjunction with employee perceptions
Ensuring that the transitions between respective team norms for onsite and remote are as smooth as possible, giving employees a cohesive experience that feels designed, not random

“While COVID-19 has caused great personal, health, and economic hardship, it has also presented a once-in-a-lifetime opportunity to reinvent the workplace,” said Debbie Lovich, a BCG managing director and senior partner. “And doing so will be essential if companies are to meet employee desires for flexibility while harnessing their potential for productivity and remaining competitive when it comes to recruiting and retaining the best talent.”

Remote Work Culture and Employee Recognition

Employee recognition is an important part of workplace culture and nearly half of employees have been frustrated about their efforts not being recognized in a remote work environment, according to a survey by Prodoscore. When asked how they would feel about a tool that would allow their daily contributions to be recognized versus only the end result, 80 percent responded positively.

“We were not surprised to learn that the majority of employees surveyed were not only open to giving employers visibility into their workday but welcomed it,” said Sam Naficy, CEO of Prodoscore.

When asked what would be most beneficial to their remote productivity, over 30 percent of employees said visibility software that identifies ways to be more efficient, 25 percent said collaboration tools and 21 percent said video conferencing.

Employees want their employers to find ways to recognize their hard work in a remote setting and they also want tools to help them communicate and collaborate with their teammates more easily.

According to BCG, even after the COVID-19 pandemic is over, 60 percent of employees want to maintain some flexibility in where and/or when they work. Many employers have started looking into ways to extend remote work offerings to reduce overhead costs, expand their talent recruitment pool, increase job satisfaction and bolster retention efforts.

It’s all the more reason to focus on building a strong remote work culture now and improved communication is key to achieving that.

When Should Employees Return to Work After COVID-19?

by LizStevens | Aug 5, 2020 | Blog

When should employees return to work after COVID-19? How to manage isolation timelines for non-hospitalized employees who have symptoms of COVID-19.

Reducing the risk of COVID-19 when reopening the workplace is the number one priority for employers and it’s hard to stay current with the latest recommendations.

The Centers for Disease Control (CDC) recently revised their isolation timelines for employees with COVID-19 who are not being treated in a hospital and managing their symptoms at home. In such cases, it’s now recommended that the decision to discontinue isolation be made using symptom-based criteria rather than the test-based strategy previously advised.

When Should Employees Return to Work After COVID-19?

Communicating with employees who have been diagnosed with COVID-19, following guidance from their healthcare providers and staying informed of public health updates is the best way to keep your employees safe when they return to work.

CDC Isolation Timeline for Non-Hospitalized Employees with COVID-19

Information from the CDC’s Discontinuation of Isolation for Persons with COVID-19 Not in Healthcare Settings:

Accumulating evidence supports ending isolation and precautions for persons with COVID-19 using a symptom-based strategy. Specifically, researchers have reported that people with mild to moderate COVID-19 remain infectious no longer than 10 days after their symptoms began, and those with more severe illness or those who are severely immunocompromised remain infectious no longer than 20 days after their symptoms began.

Therefore, CDC has updated the recommendations for discontinuing home isolation as follows:

Persons with COVID-19 who have symptoms and were directed to care for themselves at home may discontinue isolation under the following conditions:

At least 10 days* have passed since symptom onset and
At least 24 hours have passed since resolution of fever without the use of fever-reducing medications and
Other symptoms have improved.

*A limited number of persons with severe illness may produce replication-competent virus beyond 10 days, that may warrant extending duration of isolation for up to 20 days after symptom onset. Consider consultation with infection control experts.

Persons infected with SARS-CoV-2 who never develop COVID-19 symptoms may discontinue isolation and other precautions 10 days after the date of their first positive RT-PCR test for SARS-CoV-2 RNA.

Are COVID-19 Liability Waivers Legal?

Fisher Phillips, a labor and employment law firm, notes that there has been an exponential rise in the number of COVID-19 workplace lawsuits with filings for discrimination, work-from-home or paid leave claims, retaliation, unsafe working conditions and lack of personal protective equipment.

In order to avoid COVID-19 workplace lawsuits, Fisher Phillips recommends employers:

Train managers to understand their responsibilities and employee rights.
Educate managers and HR personnel on the new leave law requirements.
Develop and communicate a comprehensive safety plan as employees return to the workplace.
Anticipate the various wage and hour responsibilities that might come into play as the pandemic unfolds.

Many employers are now asking employees to sign a liability waiver agreeing not to sue the business if they catch COVID-19 before allowing them to return to work. Employment lawyers agree that these waivers are unfair and largely unenforceable, but the Senate is working on a bill that would provide broad liability protection for employers against coronavirus claims.

Employers are determined to push their businesses through the coronavirus pandemic and employees are equally eager to get back to work, but making a safe return is what matters most. This is an unprecedented time and how employers react will have a significant impact on the reputation of their business as well as their efforts to retain and recruit employees.

What to Look for in a Financial Wellness Program

by LizStevens | Jul 29, 2020 | Blog

What to look for in a financial wellness program. Employers want to help employees meet their short-term financial needs during the COVID-19 pandemic first.

Employees are seeking financial guidance to help them navigate the economic fallout from the COVID-19 pandemic and take control of their finances

Nearly 60 percent of workers say that they or a close family member have been financially impacted by COVID-19, according to the latest Modern Wealth Survey by Charles Schwab. They’re 15 percent more financially stressed than they were before the pandemic and they think their increased stress might have a lasting effect on their wellbeing. It’s prompted many of them to start taking steps to improve their personal finances and employers are eager to help.

Financial stress is one of the top motivators driving organizations to invest in financial wellness programs and 40 percent say that addressing financial stress is a top reason for increasing voluntary benefits, according to a new survey by Buck.

“Financial wellbeing is clearly a top priority for employers,” said Brian Stitzel, U.S. Health Practice Leader for Buck. “Now, as we navigate the impact of COVID-19 on the U.S. economy, it’s even more critical. Workers who’ve had wages reduced, been furloughed, or re-hired after a period of unemployment, may need extra support. And employers recognize that using voluntary benefits to help meet these employee needs can benefit their organization by lowering costs and increasing loyalty.”

What to Look for in a Financial Wellness Program

Employees are concerned about missing mortgage or car loan payments, using credit cards to pay for everyday expenses, draining their savings accounts and withdrawing from their retirement savings in the next few months. Helping employees meet short-term financial needs to prevent scenarios like these is a top priority for employers.

When looking at the features of financial wellness programs, employers are most interested in:

68 percent of employers want to help employees budget and save
66 percent of employers want to help employees manage their credit card debt
59 percent of employers want to help employees deal with unexpected medical expenses
58 percent of employers want to help employees retire when they’re ready

Employers are also considering adding financial wellness benefits that support emerging employee financial needs:

20 percent want to add student loan guidance and refinancing
18 percent want to add a student loan repayment benefit
13 percent want to add hospital indemnity insurance
11 percent want to add long-term care insurance

It’s important that employers choose a financial wellness program that is flexible enough to meet the varying needs of their employees both now and as they change over time.

How Best Money Moves Can Help

Best Money Moves is a financial wellness program that provides all the guidance and support employees need to help them reduce their financial stress. It has tools and features that help employees measure their financial stress, budget for monthly expenses, pay down debt and plan for emergencies.

Employees can talk to trained professional financial counselors and educate themselves about everything from investing to co-signing loans and buying their first homes with access to a library of over 700 articles, videos and calculators.

Best Money Moves is also gamified, featuring a point-based rewards system where users earn points every time they log in, enter their information into their profile, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

Employers want a financial wellness program that is expansive, engaging and suited to meet each of their employee’s unique needs and they’ve found it in Best Money Moves.

If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

COVID-19 Retirement Impact: Early Withdrawals and Reduced Contributions

COVID-19 Retirement Impact: Early Withdrawals and Reduced Contributions

COVID-19 Retirement Impact: Retirement Outlook

Financial Stress and How Best Money Moves Can Help

More on Topics Related to COVID-19, Retirement and Financial Stress

The Caregiver Crisis at Work During the COVID-19 Pandemic

The Caregiver Crisis at Work During the COVID-19 Pandemic

Strategies to Support Working Parents and Caregivers

Flexibility at Work

Flexibility from Work

More on Topics Related to the Caregiver Crisis at Work During the COVID-19 Pandemic

How to Build Remote Work Culture to Support Virtual Teams

How to Build Remote Work Culture to Support Virtual Teams

Remote Work Culture and Employee Recognition

More on Topics Related to How to Build Remote Work Culture to Support Virtual Teams

When Should Employees Return to Work After COVID-19?

When Should Employees Return to Work After COVID-19?

CDC Isolation Timeline for Non-Hospitalized Employees with COVID-19

Are COVID-19 Liability Waivers Legal?

More on Topics Related to When Should Employees Return to Work After COVID-19?

What to Look for in a Financial Wellness Program

What to Look for in a Financial Wellness Program

How Best Money Moves Can Help

More on Topics Related to What to Look for in a Financial Wellness Program

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