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3 Ways Inflation is Still Hurting Your Workforce

3 Ways Inflation is Still Hurting Your Workforce

by | Jan 26, 2024 | Blog

3 ways high inflation is still affecting your workforce. Learn how to help your team cope with the continuing effects of high inflation.

Although inflation cooled during the end of 2023 and price increases have somewhat slowed, most employees aren’t feeling the benefits of a recovering economy. Over 90% of Americans cut back on spending in 2023, according to a CNBC and Morning Consult survey, due to the effects of rising inflation. Going into 2024, many of these reduced spending habits are expected to remain as 88% of respondents still listed inflation as a top concern.

Find out how inflation and high prices may still be affecting your employees. Plus, learn more about the actionable solutions that your team can use to help employees find relief from financial stressors. a surprising statistic about widespread inflation

3 ways high inflation is still affecting your workforce

1. Employees increasingly use “buy now, pay later” services to cover grocery expenses

Between supply chain disruptions and rising consumer demand, prices for most household goods have risen at historic rates. Americans are struggling to keep up with new market prices. So much so that, employees are turning to “Buy Now, Pay Later” services to pay for household expenses, according to research by Adobe Analytics.

After paying rent or mortgage payments and car payments, some Americans don’t have any cash left to cover all of their monthly expenses. So, to help make ends meet, many are turning to buy now, pay later services and apps, a form of short-term financing that allows shoppers to take out an easily accessible loan at checkout that they then repay in installments over time. 

Initially, Buy Now, Pay Later services were used to help individuals finance large expenses, such as a new treadmill or computer, and repay the borrowed amount in installments. However, today, many cash-strapped employees have resorted to buy now, pay later services to pay for their groceries and other necessities. Using installment loans to cover day-to-day purchases is a short-term solution at best. At worst, it leaves buyers vulnerable to mounting debt, missed payments and even credit score damage.

2. Inflation-fueled gas prices continue to eat into employees’ monthly budgets

Although national gas prices are lower than they were a year ago, according to the AAA, employees still struggle to afford new gas prices. And amid supply-and-demand issues and geopolitical tensions, gas prices remain susceptible to price volatility. 

Similar to groceries, to help afford gas prices, employees are increasingly taking out loans and buy now, pay later accounts to cover expenses. This means that instead of using today’s dollars to pay for gas, employees are increasingly relying on future dollars and digging themselves into a potential cycle of debt.

3. Employees put fewer dollars toward their retirement savings.

To prioritize and balance expenses, many employees have turned their financial focus away from the long-term, and become laser-focused on the short-term. The impact of inflation has fueled many employees to stop saving for retirement, and instead, spend that money on short-term necessities. 

About 25% of employed adults decreased their retirement savings in 2022 and 12% stopped saving altogether, according to a TIAA report. Among Hispanic and Black employees, the percentage is disproportionately higher. 

Many employees are making sacrifices today that impact their future financial standing. However, with the right financial wellness tools, employees can learn how to balance near-term financial responsibilities with long-term financial goals.

How companies can help their employees amid financial uncertainty

1. Offer robust budgeting tools

Balancing multiple expenses every month can be challenging, but with a robust budget tool, employees can keep track of monthly and one-off expenses all in the same place. Whether it be utility bills or entertainment expenses, keeping track of spending habits and categories can help employees improve their financial practices over time. 

2. Establish flexible retirement plans and resources.

Retirement planning tools and calculators can help employees balance current financial responsibilities while preparing for tomorrow’s goals. With the right tools, employees can learn prepare for retirement, despite the ups and downs of the economy. For instance, if an employee regularly contributes 10% of every paycheck to retirement savings, when economic hardship hits, financial planning calculators can help employees gauge a new contribution percentage that works for their latest financial situation.

3. Invest in financial wellness advisors and workshops 

Some employees are aware of inflation and economic uncertainty; however, they’re unsure of how these economic events connect to them and affect their financial standing. With a financial advisor, employees can get personalized financial guidance and understand how today’s economic events impact them. In addition, consider hosting financial wellness workshops on topics that resonate with employees in your workforce. For instance, if many employees are interested in homeownership, consider a workshop on how interest rates impact mortgages.

Offset the strain of inflation with comprehensive employee financial wellness 

Best Money Moves is an interactive financial wellness benefit that helps employees make smarter choices about their money. 

Whether employees are building their first budget, paying down debt, working toward homeownership or planning for retirement – Best Money Moves has the tools they need to turn financial goals into reality. 

Best Money Moves users gain access to a suite of debt trackers, budgeting calculators and a library of 900+ articles, videos and webinars. Our tools empower employees with actionable solutions to real-world problems. Best Money Moves users also receive exclusive member deals from our library of trusted benefits partners, including discounts on insurance, college planning prescription medications and so much more. 

Schedule a call with a member of our team to learn more about Best Money Moves. Contact us and we’ll reach out to you soon.

What is Employee Cybersecurity? Plus, 3 Ways to Improve Your Cybersecurity Strategy

What is Employee Cybersecurity? Plus, 3 Ways to Improve Your Cybersecurity Strategy

by | Jan 8, 2024 | Blog

What is employee cybersecurity? Plus, 3 ways to improve your cybersecurity strategy. Learn how organizations can improve employee cybersecurity practices through proactive training and hands-on education.

In 2023, employee cybersecurity breaches cost organizations an average of 4.45 million dollars, according to a 2023 report from IBM. What’s more, only 1 in 3 affected organizations were able to spot and report these breaches through internal security procedures. The rest had to be alerted of the breach by a third-party organization — or by the hackers themselves. 

Remote work and the rise of AI technology have redefined our digital landscape. Without robust employee cybersecurity measures in place, companies of all sizes find themselves increasingly vulnerable to hackers or ransomware attacks. 

Learn more about employee cybersecurity, including how a poor cybersecurity strategy could leave your organization vulnerable to attack.a surprising statistic about the importance of employee cybersecurity
What is employee cybersecurity? Why does employee cybersecurity matter?

Employees across all industries use some type of technology in their daily operations, from basic communications technology such as email and message systems to industry-specific technology such as medical devices or stock trading software. 

Employee cybersecurity is the art of protecting these digital networks, devices, and data from unauthorized access or criminal use. Cyber security strategy may include protecting documents and emails from hackers, frequently checking for software viruses, reporting suspicious emails and more. 

For many executive teams, employee cybersecurity is a top-of-mind issue. According to Accenture’s recent CEO survey, almost 3 in 4 CEOs worry about their company’s ability to minimize damage from a cybersecurity attack. And despite companies’ increasingly investing in cybersecurity software, these investments don’t address one of the greatest risks and vulnerabilities: employees, themselves. 

Many cybersecurity attacks start with human error, whether it be accidentally downloading a virus or clicking on a phishing link. Employee cybersecurity ensures that workers have the right knowledge, strategy and preventative tools when it comes to spotting and averting cyber attacks.

3 ways to improve employee cybersecurity

1. Upgrade employee passwords with two-factor authentication.

Having a strong, unique password is helpful, but this is only the first layer of password protection. Passwords can be reused, stolen or cracked. So companies have started to double-check employees’ identity with two-factor authentication (also known as multi-factor authentication) as another layer of protection.

With two-factor authentication, after an employee inputs their password, they will be prompted to complete a second step that would be a lot harder for a hacker to fake. Common authentication methods, according to CISA, include using:

  • Something an employee knows (e.g., a PIN or security question answer)
  • Something an employee owns (e.g., sending a confirmation text to your phone)
  • Something an employee is (e.g., fingerprint or face identification)

Adding an extra layer of protection can help prevent unauthorized access to accounts, software and other sensitive data. 

2. Educate employees to spot (and avoid) phishing scams. 

One of the most common ways that hackers target employees is through phishing scams, which involve the use of fraudulent emails, text messages, phone calls or websites designed to trick users into downloading malware, sharing sensitive or personal data (e.g., Social Security number, login credentials, etc.) and more. 

According to IBM, over 40% of cybersecurity attacks use phishing to gain access to company information and data. 

Phishing attacks commonly include grammatical and spelling errors, sketchy email addresses, threats of jail time and other unrealistic consequences. By teaching employees how to identify phishing, companies can minimize their vulnerability to hackers and ransomware attacks.

3. Create an online hub for employee cybersecurity resources.

To help employees navigate the ever-changing world of cybersecurity, companies have begun developing employee cybersecurity support hubs. Within these cybersecurity hubs, employees receive consistent reminders to perform software updates, regularly change their passwords and more. 

Employee cybersecurity hubs serve as a dedicated resource for all things cybersecurity and IT-related. For instance, cybersecurity and IT hubs may include a hotline number for employees to call with any questions, as well as a reporting system for phishing attempts. 

With a clear, consistent place for employees to get cybersecurity support, companies can help increase employees’ cybersecurity awareness and minimize the risk of a harmful breach. 

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 Ways Financial Stress Impacts Employees

3 Ways Financial Stress Impacts Employees

by | Oct 10, 2023 | Blog

3 ways financial stress impacts employees. Find out how financial stress may be affecting your workforce, and impactful ways companies can help.

More than 2 in 3 adults cite inflation, money and/or the economy as a leading source of stress, according to a report from the American Psychological Association (APA). Consequently, over time, financial stress can end up causing physical, emotional and mental health issues for employees of all ages.

With the support of employers and a robust financial wellness program, employees can dial down their financial stress over time.

A surprising statistic about the impacts of employee financial stress

1. Financial stress can cause physical health issues.

Over time, money-related stress and worry can lead to physical health issues that may ultimately require a doctor’s intervention. It’s common for those experiencing chronic financial stress to also have physical symptoms, like headaches, migraines, insomnia and fatigue. 

According to the APA’s report, employees with high stress levels are 3x as likely to experience headaches and fatigue, compared to employees with average stress levels. These physical health issues can inhibit employees from showing up as their best selves and ultimately decrease employee productivity.

2. Financial stress can harm employees’ mental health and self-esteem.

Beyond the physical body, money-related stress and worries can impact well-being in other areas, such as mental health and self-esteem. According to PwC’s 2023 report, more than half of employees say they’ve experienced decreased self-esteem and mental wellness due to their financial stress. The mental health effects of financial stress can present itself in many ways, including employees feeling anxious, nervous, sad or depressed. Moreover, the lack of a clear, grounded headspace can make it harder for employees to concentrate and remain engaged throughout the day.

3. Financially stressed employees feel less connected to their company.

It’s important to remember that financial stress is not only tied to debt-related worries, like a mortgage or car loan — financial stress can be tied to day-to-day financial expenses, like affording food or transportation to work. Over time, financial stress among employees can lead to retention issues.

Employees that are financially stressed are less likely to feel connected to their employer, and ultimately, may consider looking for another employer. According to a PwC report, employees who are financially stressed are 33% more likely to say that they don’t feel connected to their company than those who are not financially stressed. The lack of belonging at a firm can lead employees to look for another employer. 

In addition, in PwC’s report, more than half of all employees say they’d be attracted to employers that care more about their financial well-being. This points to a growing trend of employees increasingly wanting an employer that makes them feel heard and supported, especially regarding their financial well-being.

Financial wellness support has increasingly become a standard in the corporate benefits space. Rather than being seen as a “nice-to-have,” top talent see financial wellness support and benefits as a “must-have” benefit for their next employer.

Looking for a financial wellness program fit for all? Try 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 bolster employee financial wellbeing.  

Whether paying off debt 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 900+ 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 Ways Companies Can Fight Racial Wealth Inequality

3 Ways Companies Can Fight Racial Wealth Inequality

by | Sep 5, 2023 | Blog

3 ways companies can fight racial wealth inequality. Learn more about the effects of wealth inequality and how organizations nationwide are working to promote racial wealth equity.

Racial wealth inequality is a pervasive problem for American workforces. The median household income is around $101,418 for Asian households and $77,999 for White households, according to data from the U.S. Census Bureau. However, the median for Hispanic households is $57,981 and the median for Black households is $48,297. 

Combating racial wealth inequality in the workplace requires time, resources and the participation of senior leadership. These three strategies target common sources of racial wealth inequality in order tp create a more equitable landscape for all employees.

A surprising stat related to the fight against racial wealth inequality

1. Target housing inequality with mortgage resources and advising.

For many, homeownership is a guaranteed track toward building wealth — however, this pathway to wealth isn’t paved the same for all Americans. Today, the mortgage lending process continues to be entrenched with racial bias and discrimination — Black mortgage applicants are 80% more likely to be denied, compared to their White counterparts, according to the Center for Public Integrity. And if approved, Black homeowners are usually given costlier, higher-risk mortgages than their White counterparts — ultimately, leading to less wealth amassed over time. 

Policymakers and the private sector have an opportunity to help create a more equitable path toward homeownership and obtaining a mortgage. For instance, some corporations have invested in employee financial benefits that support future homeowners, such as access to small-balance mortgage loans or down payment assistance programs. Other companies offer 1:1 financial advising, which can help employees compare mortgages. Together, these resources can help employees root out racial disparities in the homeownership process, like disproportionately worse mortgage loans.

2. Fight racial wealth inequality with student loan assistance.

Even years after graduation, many employees still battle looming student loan debt. However, Black and Brown employees tend to carry about 30% more student loan debt than their White counterparts, according to research by the U.S. Treasury Department. This is a result of compounded inequality; the lack of wealth for Black and Brown families doesn’t allow them to pay for college, which in turn forces many Black and Brown students to accumulate thousands in debt to pay for school.

Student debt follows many people into the full-time workforce; however, for Black and brown employees, it’s disproportionately more difficult to pay off student loans. For every dollar that Black families earn, White families earn $6, according to the Federal Reserve Bank of Minneapolis. Black and Brown families have less money to allocate for bills and other expenses, including student debt. 

To help employees combat their student loan balance, companies have been investing in student loan repayment benefits. For instance, some firms offer a match assistance program, where as long as employees make contributions to their student loan balances, their employer will also contribute a certain percentage toward repayment. This assistance can accelerate employees’ path toward becoming debt-free and increasing their overall wealth.

3. Contribute to employees’ emergency funds.

A key element of financial wellness is the ability to cover emergency expenses. About 60% of Americans say they won’t be able to afford a $1,000 emergency, according to a 2023 Bankrate report, without going into debt. This inability to afford a $ 1,000 emergency is a huge indicator of poor financial wellness, moreover, it can leave Americans at risk for more debt. 

Although debt affects all Americans, it affects Black and brown Americans differently. According to the Aspen Institute Financial Security Program (FSP), Black and brown employees are more likely to face negative consequences for their looming debt, such as bankruptcy, debt collection lawsuits and poor mental health.

Sometimes creditors or debt collectors will resort to lawsuits in an attempt to collect owed money — generally about 15% of debts are sued by a creditor or debt collector regarding unpaid funds. However, according to the Aspen Institute FSP, the majority of the debtors sued for unpaid funds identified as either Black or Latinx. 

Companies across the nation have presented several solutions that can aid employees during financial emergencies. For instance, some have increased employees’ access to affordable loans and lines of credit by investing in financial wellness solutions. Other companies have invested in emergency funds (also known as rainy day funds) for employees — these funds are designed to help employees save for, and afford, a financial emergency, without having to go into debt or dip into their 401(k) savings.

Looking for a financial wellness program fit for all? Consider 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 bolster employee financial wellbeing. 

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

Our dedicated resources, partner offerings and 700+ 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 Ways to Maximize Your Financial Wellness Benefits

3 Ways to Maximize Your Financial Wellness Benefits

by | Aug 23, 2023 | Blog

3 ways to maximize your financial wellness benefits. Financial wellness is a must-have employee benefit — learn how to maximize your financial wellness program.

Today, almost 35% of companies have financial wellness offerings for their employees, up from 25% in 2020, according to the Employee Benefit Research Institute (EBRI). Financial wellness benefits help companies help reduce attrition, attract top talent and improve the overall wellbeing of their employees.

Whether your team already offers financial wellness tools or is looking to build a new plan these three strategies can help maximize your benefits.

a surprising fact about the importance of employee financial wellness benefits

1. Supplement online tools with live, 1:1 financial guidance.

Every employee’s financial situation is unique — with a financial advisor, employees can talk through any issues they’re facing and receive personally tailored support. For some employees, live money coaching is an easier, less intimidating avenue to receive financial support than engaging with self-guided online tools. Working with an advisor can offer a more accessible avenue for receiving financial advice.  

It’s also a good idea to contract financial advisors outside of your employees’ retirement plan. Of the employers that offer financial advising, 65% of them offer this benefit through their retirement representative, according to EBRI’s report. 

While retirement providers are often a source for financial advice, they are not the preferred source for financial advice among employees. According to PWC’s 2023 report, employees of all ages say they’d prefer and trust an objective financial advisor not tied to financial products or their company retirement plan. Look for advisors who can provide objective, personalized guidance across a range of financial topics.

2. Shift toward a holistic financial wellness benefits.

Employees across different demographics suffer from different pain points. Instead of simply offering one aspect of financial wellness, like a retirement plan or student loan support, a holistic program packages multiple offerings together. Tools such as budgeting aids and loan calculators can help boost employees’ overall financial wellness and are helpful across a wide spectrum of financial situations. 

For companies unsure of where to begin with building a holistic financial wellness program, start by bundling together financial wellness benefits that are beneficial for your specific workforce. Consider: What are the main financial issues, stressors, or insecurities that your employees face? What tools and/or resources can help employees face these issues head-on?

Even if you already offer a holistic financial wellness program, companies are continuously innovating their financial wellness offerings, so it’s important to look for a program that provides new materials and tools over time. In fact, 79% of the companies currently offering financial wellness initiatives said they were encompassing more benefits, according to EBRI’s report.

3. Provide savings tools to help employees build funds for a rainy day.

While there are many forms of emergency fund or employee hardship benefits, many of the existing options rely on already-available money sources — the most common emergency fund benefit offered is withdrawals from after-tax retirement, followed by employee relief/compassion funds. The least commonly offered emergency fund benefit is rainy day funds.

However, rainy day funds allow employees to prepare for short-term emergencies without obstructing their monthly budget and finances. Today, more than 1 in 5 Americans do not have any emergency savings and cannot afford a $1000 emergency, according to a Bankrate 2023 survey. By helping employees build designated emergency savings, employers can help employees boost their financial wellness, and avoid going into debt or dipping into their retirement accounts.

Maximize your financial wellness benefits 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 700+ 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.