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Financial Resiliency: The Skill You Didn’t Know Your Team Needed

Financial Resiliency: The Skill You Didn’t Know Your Team Needed

by | Aug 6, 2024 | For Employers

Financial resiliency: The skill you didn’t know your team needed. Learn why fostering financial resiliency may be key to a more productive, confident workforce.

Everyone encounters rough financial patches at some point. The key is how easily you adapt to these challenging. situations. This concept is at the core of financial resiliency, the skill your workforce may be missing.

Financial resiliency refers to a person’s ability to withstand life events that impact their income, assets, or overall financial wellness. Divorce, sudden medical issues and unemployment can throw a wrench into a person’s finances. However, the right tools and support can help employees build financial resiliency and weather any storm.

Employees often look to their employer as a source of financial wellness support. In a survey of nearly 2,000 employees conducted by Transamerica Institute, seventy-seven percent of respondents rated employee financial wellness programs as somewhat or very important. Yet only 28% of employers report offering such benefits to their teams.

Supporting employee financial resiliency can help companies dial down employee financial stress and accelerate the path to financial security. Learn more about the unique benefits of a financially resilient team. Plus, learn to build resiliency among your organization at large.

1. Many employees cannot afford a $1000 emergency

Having enough money for a rainy day is a key pillar of financial resiliency. According to Bankrate’s 2024 Emergency Fund report, nearly 1 in 3 employees have $0 saved for emergencies — a clear indication of low financial resiliency. If faced with a $1000 emergency, many Americans would have to borrow the money, whether through a loan, from a family or friend, or carrying a balance on their credit card, according to Bankrate’s report.

To help employees craft a more financially resilient future, consider offering an emergency fund as part of your employee benefits package. One practice is to have employees complete financial wellness courses/training in exchange for a $1000 emergency fund — this benefit offering demonstrates a keen dedication to building employee financial resilience and education.

2. Looming debt can impact employees’ financial resiliency and overall health

Debt can come from a myriad of sources — car loans, education, payday loans, medical expenses, and more. Regardless of one’s debt origins, high levels of debt can lower one’s financial wellness and ability to withstand future financial emergencies.

Having a high debt-to-income ratio can limit the options an employee has amid a sudden emergency, even for employees earning six-figure salaries. Lenders and banks may view individuals with a high debt-to-income ratio as high-risk borrowers — this can lead to extremely high interest rates or being denied for a loan altogether. With high interest rates, carrying debt has become increasingly expensive. Over time, the chronic stress from carrying debt can also take a toll on the human body.

According to Forbes’ Mental Health & Debt survey, about 40% of Americans reported experiencing anxiety due to debt-related stress, and nearly half reported having trouble sleeping due to debt-related stress.

3. Help employees build financial resiliency using personalized financial wellness tools

High levels of debt can make borrowers feel stuck and unsure about the best way to manage their looming debt. Moreover, looming debt can feel cyclic.

Employees don’t have to manage their financial stress alone. A robust financial wellness program can empower employees along their financial wellness journey and help them build financial resiliency.

Every employee has a different starting place when it comes to financial wellness and. Find a financial wellness program that personalizes their offerings and counseling, based on each employee’s unique situation, as opposed to taking a cookie-cutter approach. This can help equip employees with the right tools and resources to develop financial resiliency for today and years to come.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

3 Big Benefits Mistakes to Erase From Your Program

3 Big Benefits Mistakes to Erase From Your Program

by | Jul 30, 2024 | Blog

3 big benefits mistakes to erase from your program. Your employees are disappointed in their benefits. Avoid these common benefits mistakes to improve engagement and promote wellbeing at your company.

The right benefits strategy is critical to attracting and retaining talent at any company. In a recent PeopleKeep survey, 81 percent of respondents felt that an employer’s benefits package was a deciding factor when accepting a new job.

In fact, according to MetLife’s 2024 Employee Benefit Trends Study, 93 percent of employees consider workplace wellbeing as important as salary. 

However, despite this importance, employers still fall short when it comes to selection — and these benefits mistakes can lead to serious consequences for your team. Forty percent of employers see workers leave their jobs for access to better benefits, according to data from Forbes Advisor. The wrong strategy can leave employees feeling undervalued and overworked, resulting in high turnover and other expensive problems.

Don’t let simple benefits mistakes derail your entire organization. Avoid these costly missteps when putting together your benefits packages. Benefits mistakes from MetLife’s 2024 Employee Benefit Trends Study

1. Having an unclear benefits offering

A lack of understanding is the most common issue that prevents employees from accessing benefits. According to Ameritas, 85 percent of workers don’t understand their benefits options. Responsibilities at work and at home often push accessing benefits far down the list of priorities. The intricacies of plan choices and coverage options may also overwhelm employees who haven’t engaged with them before.

The solution, then, is clear. Providing educational benefits materials is key to improving engagement and making the most out of your current offering. Breaking down complex benefits into digestible steps can help employees of all backgrounds get a jumpstart on their benefits. Also, be sure to provide support and answer questions as they come up.

2. Choosing irrelevant and outdated benefits

Before considering any benefits, it’s important to understand what employees want out of their compensation package. According to PeopleKeep, the most important resources to employees include health benefits, dental insurance, paid time off and retirement options.

However, just because a resource is requested doesn’t mean it’ll be utilized. Consider the usage of each of your benefits when evaluating which ones are best for your organization.

To provide relevant benefits, it’s important to survey your workforce to understand what they are looking for. In the same PeopleKeep survey, only 47% of respondents claimed that the benefits their employers offered fit their specific needs. As a result, personalization is another major aspect of benefits that goes unnoticed. According to Benefit Hub, 75% of employees want custom support based on their mental, physical and financial needs.

3. Overlooking employee financial security

Financial stress is one of the top issues affecting Americans and may be taking its toll on your employees. According to CNBC, nearly 60% of Americans live paycheck-to-paycheck. And this financial stress comes at a cost. In a 2024 SoFi survey, 1 in 4 employees claimed that this financial stress was detrimental to their workplace performance.

According to MetLife’s 2024 Employee Benefits Trend survey, 45 percent of employees reported that financial stress was the top cause of their poor mental health.

The key to financial stress is a holistic financial wellness program. And employees have taken notice. A 2023 Transamerica Institute report found that 77% of employees want a financial wellness program, but only 28% of employers provide it.

Financial wellness provides clarity when making big decisions and hitting important financial milestones. With educational resources and tools, your workforce can rest assured that their most pressing financial questions are answered.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

5 Simple Ways to Increase Engagement for Financial Wellness Benefits

5 Simple Ways to Increase Engagement for Financial Wellness Benefits

by | Jul 24, 2024 | Blog

5 simple ways to increase engagement for financial wellness benefits. 5 proven strategies to increase employee engagement for your financial wellness programs.

Financial wellness benefits are more important than ever before, as financial stress weighs heavily on Americans. Nearly half of all respondents (47%) in a recent MarketWatch survey claim that 2024 was the most stressful year of their financial lives.

Financial wellness benefits offer the resources and education required to curtail the effects of long-term financial stress. For employees, they provide financial security, customized guidance and peace of mind beyond their primary source of compensation. For employers, the right financial benefits help attract talent and keep their workforce satisfied.

According to a TIAA survey, 65 percent of Gen Zers and 61 percent of millennials believe it is a company’s responsibility to help employees improve and maintain their financial wellness. However, despite these concerns, financial wellness programs may go overlooked among the other, more common benefits an employer may provide.

To improve engagement in your financial wellness programs, implement the following five strategies with your workforce.

47% of employees claim that 2024 has been the most stressful year of their financial lives. Financial wellness.

1. Clarify why financial wellness is important.

An open line of communication is the best way to maximize the benefits your employees get from your benefits programs. This goes beyond initial presentations and quarterly emails. Be sure to clarify the resources your wellness program offers and why they are important. Building habits that promote financial wellness are proven to eliminate stress and set your employees up for success.

Effective communication is key to ensuring employees are aware of and understand the benefits available to them. Consistently check in with your workforce to find out what resources will help them best and explain how financial wellness is the solution. This may include communication via emails, messaging channels, newsletters and in-person meetings. To see engagement increase, it’s important to use as many lines of communication as possible.

2. Explain how financial wellness programs can help.

Although the majority of Americans are stressed about finances, employees don’t take advantage of financial wellness benefits and they don’t understand how they work. But the fix is simple. Workshops, webinars and coaching sessions can all be used to explain how the benefits work and how they can improve employees’ financial situations.

For example, budgeting programs allow users to track expenses and see where their spending might be causing issues. Educational resources like articles and videos provide the necessary context to their pressing financial questions. Without understanding why financial skills are necessary, employees are unlikely to use the programs being offered to them.

Financial wellness programs can seem complicated, but the goal is to make them more approachable to the employees who need them most.

3. Understand the necessity of personalized benefits solutions.

Benefits might feel out of reach for many of your employees due to their current circumstances. Instead of using a one-size-fits-all approach, try personalizing your benefits to match the needs of your team. Employees who resonate with their benefits are more likely to use and see results from them. As Deloitte’s 2023 Employer Health Benefits Survey reports, “Today’s workers need a much more customized experience to feel appreciated and valued for what they do.”

Speak directly with employees to find out where their financial strengths and weaknesses lie. With this information, you can understand exactly what your staff needs. For example, an employee fresh out of college will likely be more interested in student loan repayment assistance, while older employees might get the most from family planning or retirement resources.

Personalization ensures that the benefits are relevant and valuable to each individual, leading to higher engagement rates.

4. Provide incentives for using financial wellness benefits programs.

Incentivizing employees for their efforts while using financial wellness programs can be a powerful strategy to improve engagement. For example, consider offering rewards for participation or reaching certain financial milestones. Instead of forcing benefits communication, provide employees the opportunity to opt-in using friendly competitions or rewards programs.

Also, consider highlighting the success stories of those who already use your offerings. Employees who see their peers benefiting from financial wellness programs may be more inclined to take action. By providing real rewards, you can encourage employees to engage with the programs and create a positive association with financial wellness.

5. Consider employee feedback.

Alongside consistent communication, learning from feedback is the best way to improve engagement in your benefits.

Use this feedback to develop your strategy to ensure the needs of your employees are being met. Employees who see their feedback lead to real changes are more likely to feel invested in and engaged with the financial wellness benefits offered. These programs are built for employees, so it’s important to incorporate suggestions that are provided by them.

Improving engagement in financial wellness benefits requires a concerted effort, but is well worth the investment. Financial stress is one of the most powerful detractors of productivity and well-being. Financial wellness programs are the key to improving employee financial health and contributing to a satisfied workforce.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

How To Help Younger Employees Tackle Money Worries

How To Help Younger Employees Tackle Money Worries

by | Jul 15, 2024 | Blog

How to help younger employees tackle money worries. Younger employees are especially vulnerable to money issues at home. Here are the best ways employers can help.

Younger Americans are disproportionately worried about money, compared to their parents’ and grandparents’ generations. According to an American Psychological Association study, over 60% of Gen Z and Millennials say they feel overwhelmed by their financial woes. And for younger employees, their financial worries extend far into the future.

According to Georgetown and Bank of America’s study, most Gen Z and Millennial employees (64%) don’t foresee themselves being able to retire at 65, due to their lack of financial security. This issue is further exacerbated by the fact that 44% of younger workers report outstanding student loans or other consumer debt.

Today, more than half of the U.S. student loan debt belongs to borrowers under 40 years old, totaling over $800 billion, per the Education Data Initiative. Credit card delinquencies have also risen this year. According to the Federal Reserve Bank of New York, most of these missed payments are driven by Gen Z and Millennials.

Here are three ways companies can support their younger employees with their unique financial struggles.A statistic about younger employees

1. Offer debt management resources and tools

Debt management support is needed and highly sought-after by younger employees. According to a Georgetown study, nearly 1 in 5  say they’d like their employer to offer debt management benefits. 1 in 3 younger employees with outstanding debt  say they’d like their employer to offer debt management benefits.

With budgeting tools and other debt management resources, younger employees can get the individualized support they need for their financial situation.

 

2. Provide younger employees with personalized financial guidance.

With money coaching, younger employees can learn how to address their short-term and long-term money goals. Instead of getting generic cookie-cutter advice, money coaching can provide Gen Z and Millennials with the personally tailored support they need for their financial situation.

For instance, 1 in 2 younger employees with outstanding debt say they’d rather pay off their consumer or student debt than invest for retirement, per Georgetown and Bank of America’s study. Alongside a money coach, younger employees can develop a plan to pay off their debt while preparing for retirement.

3. Take a digital-first approach to financial wellness benefits.

Today, younger employees use their phones for more than just streaming and social media. Many use online resources and applications for banking and managing their finances.

Whether it be viewing an account statement or transferring money, more than 95% of Gen Z and Millennials use mobile banking apps to manage their money, according to CNBC’s Digital Banking Attitudes study.

Given younger employees’ comfort with technology and online banking, take a digital-first approach to financial wellness benefits. Younger employees are more likely to engage with an online financial wellness program, especially if it can be accessed from their phone.

Try Best Money Moves to support your younger employees.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

5 Ways to Motivate Your Employees to Save Money

5 Ways to Motivate Your Employees to Save Money

by | Jul 8, 2024 | Blog

5 ways to motivate your employees to save money. Help employees save money with financial wellness programs, benefits communication, retirement plans and more.

Financial experts generally recommend having three to six months’ worth of expenses in an emergency fund to help cover unexpected costs. However, for many employees, putting this advice into practice is easier said than done. 

In a survey of over 1,000+ U.S. adults conducted by Bankrate, 56% of respondents reported being unable to cover a $1,000 expense. Additional data from the Consumer Financial Protection Bureau found that roughly 25% of consumers have no emergency savings whatsoever. 

Here are five important ways that employers can help motivate employees to save money to help prevent financial emergencies and reach their unique financial goals.

A statistic about Americans who struggle to save money

1. Comprehensive financial wellness programs help employees save money.

Saving for the future is often not a priority, especially for employees living paycheck-to-paycheck. However, having these savings is important both for individual employees and the workplace as a whole. A 2023 PwC study found that 57% of employees cited finances as their top stressor. Helping employees manage their financial stress can reduce absenteeism, improve workplace productivity and improve morale among staff members. 

While many employers offer retirement plans, financial security is not only about the distant future. It also means being prepared for unexpected expenses in the present. Addressing the broader aspects of financial wellness can lead to more immediate and impactful benefits for employees.

Educating employees on the importance of an emergency fund can help them handle any sudden costs that come their way. Many employees also struggle with debt from student loans, credit card balances and mortgages. Counseling and resources for debt reduction and management can lower financial stress and help your team regain control of their spending. 

Ask employees how they prefer to access such resources to maximize their usage. For example, some employees may prefer to learn from a website while others would rather talk to an expert. For employees looking for more direct guidance, providing access to a financial counselor who can work one-on-one with employees is crucial. Qualified advisors can help individuals set goals, formulate budgets, choose investments and save money.

2. Focus on improving your existing benefits communication.

Some employers already offer financial benefits that help their employees save money. However, poor benefits communication means these services go unused. Recent data from the Bureau of Labor Statistics estimates that benefits account for just under 40% of an employee’s total costs. So, when your team fails to take advantage of their existing benefits, both the employee and employer lose money. 

Benefits communication efforts can increase employee engagement, financial wellness and staff satisfaction. Furthermore, there is a demand for clearer communication among employees themselves. According to the Society for Human Resource Management (SHRM) 2023 Employee Benefits Survey, 71% of employees want more accessible information about their benefits choices. Through consistent communication with employees, employers can increase the take rate of benefit opportunities and help employees manage their savings.

3. Use default opt-out for retirement plans.

In some cases, it may also help to make benefits participation automatic. Rather than having employees opt into a company’s retirement plan, employers can automatically enroll all employees into the plan unless they actively choose not to participate by opting out. This way, workers have to take action to not be enrolled in the retirement plan and many end up taking the path of least resistance by staying enrolled, thus making regular retirement contributions. 

Employers can also offer retirement plans to new and part-time employees, as long qualifying work periods can discourage workers from saving for retirement—avoiding these buffer periods can attract and retain talent.

4. Help employees save money by offering debt education.

Monthly debt payments and high interest rates eat up space in employee budgets, making it difficult to save money.  However, employers can step up to help employees manage their debt and make room in their budgets to cover surprise expenses. 

The process of managing debt begins with understanding employees’ needs. For example, student loan debt follows some employees far into their lives. 46% of student loan debt is held by those over 40 years old. Offering housing assistance is another way employers can help with debts among the housing shortages and increasing home and mortgage costs. This can be done through down payment offerings and closing cost assistance in the form of a loan forgivable over a designated period. 

Grants, loans and security deposits, along with homeownership education and counseling, can also help employees with mortgage loan support. Debt consolidation resources can also help simplify the debt repayment process. Employees can quicken their debt payoff by merging the separate payments into a single monthly payment. This may also allow employees to pay an interest rate less than the average interest rates of their multiple debts.

5. Facilitate payroll deductions and on-demand pay to help save money. 

78% of Americans live paycheck to paycheck, which is a 6% increase from the previous year, according to a 2023 survey conducted by Payroll.org. These numbers underscore the need for employers to take steps to support their employees. 

One way for employers to do this is by enforcing after-tax payroll contributions to a savings fund. Because the process is fully automatic, it makes saving easy for employees—the earnings go straight from the payroll to this rainy day fund so people are not tempted to use the money from the accounts for everyday costs. 

On-demand pay is another way for employers to support employees financially. On-demand pay gives employees access to their pay as they earn it—employees can request a portion of their pay before the end of the pay period, which supports their short-term financial security, giving them the flexibility to cover bills and emergency expenses as they arise without sacrificing long-term financial stability, allowing them to establish a solid financial foundation.

Help your team build their savings with Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being.

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.