Improving Employee Financial Wellness in 2021

Improving Employee Financial Wellness in 2021

Improving employee financial wellness in 2021. How employers can help workers achieve their financial goals and reduce financial stress in 2021.

An incredible 85 percent of employees say they worked on their financial habits during the COVID-19 pandemic and 96 percent of them plan to continue improving their financial behaviors in 2021, according to research by NerdWallet.

Nearly 90 percent of those with financial goals for 2021 recognize current events could interfere with their plans, 53 percent are concerned about the uncertainty of the pandemic, 36 percent are worried about the effects of election outcomes and perhaps most surprising 19 percent are uncertain about having access to the best resources to help them achieve their goals.

This financial wellness month employers can help employees reach their goals and minimize the negative impact financial stress has on their business by choosing a financial wellness solution that meets their varying needs. 

Improving Employee Financial Wellness in 2021

Understanding Financial Goals for 2021

Understanding the different financial goals employees have can give employers a better idea of the tools and features they could benefit from. According to a survey by MagnifyMoney, these are the financial resolutions employees are most interested in achieving in 2021:

  • 50 percent of employees want to reduce their debt or become debt-free
  • 46 percent want to increase their credit score
  • 45 percent want to increase their savings
  • 38 percent want to save for a specific purpose (retirement, vacation, etc.)
  • 33 percent want to build an emergency fund
  • 31 percent want to stop living paycheck to paycheck
  • 29 percent want to get a higher-paying job
  • 22 percent want to create a budget and stick to it
  • 13 percent want to donate more money to charity.

As employees build on the habits they developed in 2020, it’s vital they have access to resources that can help them break these broad topics down step-by-step. Most employees (84 percent) say getting advice at work would be valuable and 74 percent say it would reduce their financial stress, according to research by Edelman Financial Engines. 

How Financial Wellness Programs Can Help

Now more than ever, the desire for financial wellness is evident. Platforms like Best Money Moves have everything employees need to improve their financial wellness and reach the goals they set for themselves.

Best Money Moves goes far beyond basic budgeting tools. Employees can educate themselves about everything from investing in the stock market to co-signing loans to buying their first homes with access to a library of over 700 articles, videos and calculators. A team of Money Coaches, trained financial counselors, are ready to answer any remaining questions and give employees financial guidance whenever they need it. Going another step further, Best Money Moves leverages user analytics to create individualized employee content and it’s gamified to encourage consistent engagement. 

Employee information is always private but employers do have access to key analytics that show overall employee financial stress and stress levels over time. The Employer Dashboard also features information on program usage, debt and savings levels and more so employers can see just how valuable Best Money Moves is to their employees.

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.

More on Topics Related to Improving Employee Financial Wellness in 2021

Top 10 Employee Benefits for 2021

3 Ways to Reduce Employee Burnout in 2021

Why Financial Wellness Is a Must-Have Employee Benefit

Top 10 Reasons Why Employees Leave Their Jobs in 2021

Managing Employee Healthcare Costs in 2021

Top 4 Biggest Challenges of Working from Home in 2021

Top 4 Biggest Challenges of Working from Home in 2021

Top 4 biggest challenges of working from home in 2021. How employers can meet the challenges of remote work and help employees adapt to working from home.

Permanent remote work arrangements are expected to double from 16.4 percent in early 2020 to 34.4 percent in 2021, according to a study by Enterprise Technology Research.

But adapting to working from home continues to be a challenging process, evidenced by popular searches like “how to stay focused working from home” and “tips for working from home with kids.”

Transitioning to remote work is a massive undertaking that’s all the more complicated when it occurs overnight in response to a global pandemic. Organizations expanding remote work capabilities in 2021 must address the biggest pitfalls of working from home for a successful endeavor. 

Top 4 Biggest Challenges of Working from Home in 2021

Minimizing Distractions at Home

Distractions are plentiful at home. Employees lose focus because of family members, pets, chores, construction, their phones, televisions and so much more. It’s important to adapt a routine that’s conducive to remote work by identifying and working around major distractions. Maybe it’s as simple as setting a specific day or time to do chores, or setting up a workspace in a bedroom to avoid high traffic areas like the living room and kitchen. 

Some employees don’t have home office equipment and could be distracted by their limited setup. Nearly 65 percent of people working from home due to the coronavirus reported new physical woes including “tech neck” and lower back pain, according to findings published in the Journal of Occupational and Environmental Medicine. Employers recognized this distraction and barrier to productivity as well as wellness and allowed workers to start expensing desks, chairs and computers or instituted allowances for WiFi and phone costs

Employers should check in with employees when adapting to remote work to see how they’re adjusting to the new routine and if they have the right equipment to get the job done at home.

Supporting Mental Health and Financial Wellness

Supporting Remote Worker Mental Health

Social isolation has been linked to depression, poor sleep quality, impaired executive function, accelerated cognitive decline, poor cardiovascular function and imparied immunity, according to the American Psychological Association. Social isolation, as well as anxiety about the virus and the uncertainty of the economy are just a few of the mental health challenges employees are experiencing that could be impacting their performance or productivity at work.

Employers can help by asking workers how they’re doing in general when conducting performance check-ins and by reminding them or even emphasizing the mental health benefits and perks that might be available, like teletherapy or mental health days.

Supporting Employee Financial Wellness

Financial stress costs employers $2,169 in lost productivity and absenteeism per employee, according to research by John Hancock. Absenteeism due to financial stress more than doubled from 2019 to 2020 and 43 percent of workers spend time on their finances during work hours. 

Nearly 60 percent of employees are feeling more financial stress during the COVID-19 pandemic than before it began. Close to 80 percent are worried about economic conditions, over 70 percent are worried about not having enough retirement savings and 22 percent have dipped into their emergency savings. 

Supporting employee financial wellness in a remote work environment is all about finding the right financial wellness program for your workforce. Best Money Moves has all the tools and features employees need to assess their financial situations; budget for monthly expenses, pay down debt, plan for emergencies, save for retirement and diversify their portfolios. It has a library of over 800 articles, videos and calculators, resources that employees can use to educate themselves about everything from investing in the stock market to co-signing loans to buying their first homes. Our team of Money Coaches, trained professional financial counselors, are ready to give employees additional financial guidance whenever they need it.

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.

Creating a Connect Culture

One of the most challenging parts of adapting to working from home is figuring out how to stay connected as a team. Over 40 percent of employees struggled with group work, 28 percent had a hard time with customer interactions, 18 percent found information gathering straining and 14 percent had a tough time with task execution when working remotely during COVID-19, according to research by Ring Central. More than half of employees said their companies did not make significant attempts to help them collaborate remotely, which made collaboration more difficult than in a physical office.

Ring Central found that 34 percent of employees working at companies that foster a connected culture say they’re more productive when working from home. When asked what helped them feel more connected at work, half of employees said that frequent employee communication helps, 26 percent said enhanced collaboration tools, 24 percent said virtual happy hours, 22 percent said peer chats and 15 percent said group video games.

Employers should work with their teams and try different ways of connecting remotely to determine what works best for them.

Flexibility for Parents and Caregivers

Over 60 percent of parents agreed that the COVID-19 pandemic made the 2019-2020 school year extremely stressful for them, according to research by the American Psychological Association. Parents were challenged with setting their kids up for virtual or hybrid learning on top of adjusting to the shift to working from home. 

Employers can better support parents and caregivers by providing more flexibility, whether it’s giving them more control over what they work on, when they work or how they work. Flexibility allows people to do their jobs while wrestling with new stressors and responsibilities, such as a child’s education or caring for an aging parent.

Meeting the Challenges of Working from Home During COVID-19 in 2021

These are the four biggest challenges of working from home in 2021: minimizing distractions, supporting employee wellness, creating a connected culture and providing flexibility for parents and caregivers. But they aren’t the only challenges employers will face adapting to a remote workforce. Employers will need to digitize HR functions and rethink benefits and perks that worked well in a physical workplace (such as staff lunch, snacks, gym memberships) to create a remote employee experience that improves productivity, retention and recruitment. 

More on Topics Related to the Top 4 Biggest Challenges of Working from Home in 2021

Top 10 Employee Benefits for 2021

HR Trends 2021: Which Benefits Do Employees Value Most?

Top HR Challenges in 2021 and How to Overcome Them

Top 10 Reasons Why Employees Leave Their Jobs in 2021

How Employee Health and Wellness Programs Help Build Resiliency

3 Ways to Reduce Employee Burnout in 2021

3 Ways to Reduce Employee Burnout in 2021

3 ways to reduce employee burnout in 2021. How to spot the symptoms of employee burnout and minimize its impact on your business.

An alarming 76 percent of U.S. employees are currently experiencing burnout, according to new research by Spring Health. 

“The events of 2020 put a tremendous amount of pressure on U.S. employees — especially those who are raising children or taking care of elderly loved ones,” said Dr. Millard Brown, senior vice president of Medical Affairs at Spring Health. “Burnout is extremely costly for organizations, so it’s imperative that leaders take steps now to reduce and manage burnout symptoms for their workforce.”

Employers can minimize the impact of employee burnout by spotting symptoms early and making changes in workplace culture or employee benefits offerings.

3 Ways to Reduce Employee Burnout in 2021

Spotting the Symptoms of Employee Burnout

The first step to reducing employee burnout is spotting the primary symptoms including exhaustion, feeling negative, cynical or detached from work, reduced productivity and poor work performance. Employee burnout is often reached after an extended period of high stress.

“Employee burnout can present on a spectrum,” said Dr. Brown. “At its earliest stages, burnout can be mobilized more easily. Whether it’s offering more flexible work schedules for caretakers or rebalancing workloads that have been skewed by layoffs, employers have a lot of opportunities to support their team members without sacrificing larger organizational goals. Once an employee reaches the complete burnout stage, though, recovery can become a challenging and long-term process that significantly disrupts both the employee’s life and the organization’s efficacy.”

Making Changes to Workplace Culture to Reduce Employee Burnout

Almost a third of employees experiencing burnout say that increased responsibilities at work contributed to their burnout and that reducing the number of hours spent working would help them reduce or avoid burnout altogether. Over 25 percent of employees say having a supportive and understanding manager at work would also help them to reduce and avoid burnout. 

Training supervisors to lead with empathy, spot the signs of burnout and respond effectively by supporting the employee and working to find reasonable solutions can make a huge impact in reducing employee burnout.

Making Changes to Employee Benefits to Reduce Employee Burnout

Nearly 1 in 4 U.S. employees believe that better mental health-related policies at work would help them avoid or reduce burnout. Mental health benefits can help employees reduce stress and build emotional resiliency that can help them through times of crisis, like the COVID-19 pandemic and the economic uncertainty that followed.

Another 30 percent of workers said receiving more paid time off from their employer would assist them in avoiding or reducing burnout. Paid time off allows employees to take time off when they need it, for whatever reason, and being able to split paid time off between vacation days, sick time and mental health days could help employees reduce and avoid burnout.

Employers who want to reduce the negative impact of employee burnout and get back to the business at hand should train supervisors to spot the symptoms and react accordingly by reassessing workloads and looking to changes to office culture or benefits offerings that could be advantageous.

More on Topics Related to Employee Health and Wellness 

Why Financial Wellness Is Important to Employees in 2021

Top HR Challenges in 2021 and How to Overcome Them

Managing Employee Healthcare Costs in 2021

How to Build Remote Work Culture to Support Virtual Teams

HR Trends 2021: Which Benefits Do Employees Value Most?

Why Financial Wellness Is Important to Employees in 2021

Why Financial Wellness Is Important to Employees in 2021

Why financial wellness is important to employees in 2021. Why employees want financial wellness benefits and what they value most about their tools and features.

An astounding 86 percent of employees agree it’s important for employers to offer financial wellness programs, according to research by John Hancock.

The time employees spend distracted by their personal finances at work equates to over 47 hours in lost productivity per year. Nearly 20 percent of employees worry about personal finances at work every single day and roughly 60 percent worry about it at least once a week. Financial stress is top of mind for 64 percent of employees.

More than 65 percent of employees believe that employer-sponsored financial wellness programs have an impact on reducing financial stress, 59 percent say such programs improve loyalty and the likelihood they’d recommend their employer and 54 percent say a financial wellness program would increase their job productivity.

All financial wellness programs are not created equally, however, and employees are looking for a specific mix of tools and resources to help them manage their finances and reduce financial stress. 

Why Financial Wellness Is Important to Employees in 2021

The vast majority of employees agree it’s important for employers to offer financial wellness programs. Most employees don’t feel knowledgeable enough to determine their overall financial wellness and 62 percent would like their employer to help them. 

These are top sources of financial stress that employees believe financial wellness programs could help them with:

  • 80 percent of employees aren’t sure if they’re on track for retirement
  • 57 percent of employees worry about not having enough emergency savings to cover an unexpected expense
  • 23 percent of employees have student loan debt for themselves or others and 60 percent of them have a balance of $20,000 or more
  • 20 percent of employees believe their debt is a major problem

Employees are most interested in financial wellness programs that can help them assess their situation, manage debt, balance financial priorities, set goals and create a budget. More than half of workers believe if they were taught how to balance their financial priorities, they would be able to save more for retirement.

How Best Money Moves Can Help

Best Money Moves has it all. It has tools and features that help employees assess their financial situations, budget for monthly expenses, pay down debt, plan for emergencies and save for retirement. Our team of Money Coaches, trained professional financial counselors, are ready to give employees financial guidance whenever they need it. Employees can educate themselves about everything from investing in the stock market to co-signing loans to buying their first homes with access to a growing library of over 700 articles, videos and calculators. We leverage user analytics to create individualized employee content and Best Money Moves is gamified to encourage consistent engagement. 

Employee information is always private but employers do have access to key analytics that show overall employee financial stress and stress levels over time. The Employer Dashboard also features information on program usage, debt and savings levels and more so employers can see just how valuable Best Money Moves is to their employees.

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.

More on Topics Related to Why Financial Wellness Is Important to Employees in 2021

What to Look for in a Financial Wellness Program

How to Choose Your Benefits Package for 2021

Why Financial Wellness Is a Must-Have Employee Benefit

How Financial Stress Impacts Job Performance

HR Trends 2021: Which Benefits Do Employees Value Most?

Top 10 Reasons Why Employees Leave Their Jobs in 2021

Top 10 Reasons Why Employees Leave Their Jobs in 2021

Top 10 reasons why employees leave their jobs in 2021. They’re most likely to leave when they don’t feel valued, have unreasonable workloads or when opportunities for advancement are scarce.

Nearly a quarter of employees voluntarily left their jobs in the past year. 

Job satisfaction plummeted during the COVID-19 pandemic. Nearly 30 percent of employees are dissatisfied with their jobs, up from just 7.4 percent in 2019, according to research by iHire. Less than 20 percent of employees consider themselves to be very satisfied at work these days.

iHire asked employees to rank factors that led them to leave their jobs as well as what their recent employer could have done to keep them aboard. 

Top 10 Reasons Why Employees Leave Their Jobs in 2021

These are the top 10 reasons why employees leave their jobs:

  1. Unsatisfactory salary or pay (15.8 percent)
  2. Stress or an unmanageable workload (11.7 percent)
  3. Few growth or advancement opportunities (11.5 percent)
  4. Employer’s values not aligning with their own (7.0 percent).
  5. Interest in a different industry or career path (6.7 percent)
  6. Poor work/life balance (6.5 percent) 
  7. Unsatisfactory benefits (3.8 percent) 
  8. Lack of employee recognition (2.9 percent)
  9. Concerns about their employer’s ability to address health and safety concerns in the wake of COVID-19 (2.3 percent) 
  10. No options for remote work (1.3 percent)

iHire gave employees the option to select “Other” as a reason for leaving their job and the 15.7 percent of employees who selected it were asked to elaborate. Popular responses included: 

  • Poor relationships with managers and coworkers
  • Relocation
  • Toxic work environment
  • Long commute
  • Retirement
  • Disorganized management teams
  • Not enough hours
  • Unreasonable expectations
  • Not enough training
  • Not using skills to one’s potential
  • Company longevity/stability
  • COVID-19 concerns in general

Employees who feel like they are undervalued and overworked are most likely to leave their jobs, but opportunities for advancement, company values employees can get behind and robust benefits offerings are just as important to employee retention and job satisfaction.

What Employers Could Do to Get Employees to Stay

These are the top 10 reasons employees would reconsider accepting a new job offer and stay with their current or most recent employer:

  1. Raise or bonus (50 percent)
  2. Healthier work/life balance (25.7 percent)
  3. Clear growth or advancement opportunities (25.4 percent)
  4. Better benefits package (22 percent)
  5. Meaningful employee recognition (19.8 percent)
  6. Professional development opportunities (15.2 percent)
  7. Promotion (12 percent)
  8. Remote work (11.5 percent)
  9. Regular performance feedback (8.1 percent)
  10. Student loan repayment assistance (4.8 percent)

Once again the emphasis is on job compensation, manageable workloads, clear paths for advancement, but also opportunities for professional development, better employee benefits and flexibility. 

Employers who are prioritizing retention in the new year should review their operations to see which areas they’re excelling in and where they can build out processes and programs to better retain employees.

More on Topics Related to Top 10 Reasons Why Employees Leave Their Jobs in 2021

Top HR Challenges in 2021 and How to Overcome Them

HR Trends 2021: Which Benefits Do Employees Value Most?

Top 10 Employee Benefits for 2021

Managing Employee Healthcare Costs in 2021

Why Financial Wellness Is a Must-Have Employee Benefit