LizStevens, Author at Best Money Moves

Zombie Employees: Who Are They and What Do You Need to Know?

by LizStevens | Jan 16, 2019 | Blog

Zombie Employees: who are they and what do you need to know? This is the reason why employees are distracted, taking more time off and losing sleep.

Financial stress keeps 40 percent of Americans up at night, according to a new survey from Marcus by Goldman Sachs. This echoes research from Fidelity Investments, which found those with financial stress don’t get enough sleep and are more likely to be frequently stressed-out or anxious.

But employees aren’t just losing sleep. Financial stress can lead to poor health, lower productivity and higher absenteeism. The result is a disengaged workforce, a.k.a., zombie employees.

Zombie Employees, Financial Stress and Health

Nearly 90 percent of those surveyed by Marcus by Goldman Sachs agree financial well-being has an impact on their overall health. Willis Tower Watson found employees with high levels of financial stress are twice as likely to have poor health as opposed to those without financial stress. Employees struggling with finances are absent twice as often as those who are financially stable. Financial stress is so high, more than 25 percent of Americans skip necessary medical care because they’re unable to afford the cost, according to the 2017 Federal Report on Economic Well-Being.

Financial Stress at Work

Employees bring financial stress with them to work. Bank of America found more than 50 percent of employees who feel stressed report that it interferes with their ability to focus and be productive at work. More than 40 percent of employees spend 3 or more hours at work dealing with personal finance matters each week. John Hancock found 70 percent of financially stressed employees worry about personal finances at work, costing employers up to $2,000 annually per employee in lost productivity.

The good news is, a recent survey by Bankrate found almost 90 percent of Americans have a financial goal they’re hoping to accomplish in 2019, like paying down debt, budgeting spending better and saving more for retirement. The catch? They’ll need help to achieve their financial goals. Marcus by Goldman Sachs found almost 60 percent of Americans found tracking and budgeting expenses to be more stressful than activities like opening a new savings account or trying a new workout.

Financial Wellness Programs

Employers can help zombie employees overcome financial stress and revive their work lives. A report by Ernst & Young found more than 40 percent of employees who are engaged with their financial wellness program are likely to remain productive in the office. The right financial wellness program will help employees reduce financial stress and its detrimental effects so they can bring focused productivity back to work.

More on Financial Stress and Employee Wellness

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

How to Support Mental Health at Work

by LizStevens | Jan 8, 2019 | Blog

How to support mental health at work: Manage work-related mental illness risk factors and encourage employees to engage with available mental health programs and benefits for improved health and higher productivity.

Nearly a quarter of U.S. workers have been diagnosed with depression and 40 percent of them take an average of 10 days off from work each year because of their mental illness, according to the American Psychiatric Association (APA).

The World Health Organization (WHO) estimates depression and anxiety cost the global economy $1 trillion each year in lost productivity. The good news? WHO also estimates that for every $1 put into scaled up treatment for common mental disorders, there is a return of $4 in improved health and productivity.

Employers can start to minimize the effects of mental illness in the workplace by identifying work-related risk factors and simplifying access to mental health benefits.

The WHO identified work-related risks, like inadequate health and safety policies, poor communication and management practices, limited participation in decision making or low control over one’s area of work, low levels of support for employees, inflexible working hours and unclear tasks or organizational objectives, as factors that could negatively impact employees’ mental health. The WHO recommends offering flexible hours, job-redesign, addressing negative work dynamics, and supportive and confidential communication with management to help people with mental disorders continue or return to work.

Traditionally, employees have accessed mental health benefits using an employee assistance program (EAP), a time-consuming process where they’re screened by phone and directed to an in-network provider. Benefits providers have started looking for solutions that streamline access to mental health benefits, acknowledging how frustrating the traditional model can be.

Fairview, a health system based in Minneapolis, places a behavioral health provider onsite, or at the nearest clinic, for employees to consult with in person. “The system eliminates barriers; people will know where to go for help. And getting help sooner means that we’re more likely to resolve the issues earlier in the process. We believe that will save the employer money, both with claims costs and productivity,” says Rene Coult-Calendine, Vice President of Market and Product Development at Fairview.

Organizations should develop integrated health and well-being strategies that include mental health intervention, covering prevention, early identification, support and rehabilitation to better support mental health in the workplace. Communicating available programs or benefits, and, more importantly, encouraging their use can make a real difference when it comes to managing mental illness in the workplace.

How to Help Employees Save More for Retirement

by LizStevens | Jan 2, 2019 | Blog

How to help employees save more for retirement. Employees experience debilitating financial stress when it comes to retirement and they want employers to provide tools and support that ensure they’ll have enough money saved to last through retirement.

A third of workers and a fifth of retirees are ‘overwhelmed’ or ‘paralyzed’ by their financial situations, according to the latest Retirement Study Reveal by Wells Fargo. Nearly 40 percent are unsure how much they’ve saved for retirement, or say living to age 85 would be a ‘financial hardship.’

Close to 70 percent of employees are concerned about running out of money in retirement and don’t know what they’d do if it happened. Almost 60 percent of retirees took retirement earlier than expected or started taking Social Security as soon as they could.

Most of the focus for retirement education and support has gone to Millennials and Baby Boomers, but GenXers are nearing the critical pre-retirement phase and experiencing high levels of financial stress.

Less than half of GenXers are saving enough for retirement. Only 45 percent of them have a detailed financial plan, less than all other generations. They’re sandwiched between the financial responsibilities of Millennial children and Boomer parents. More than 60 percent of GenXers want more help from employers with their retirement choices.

How to Help Employees Save More for Retirement

Across all three generations, nearly 90 percent of employees want a 401(k) statement with retirement income estimates. Roughly 60 percent say making savings last through retirement is the most important part of retirement planning. If employees receive a quarterly estimate of what they’ll have in retirement they can compare it with the national average income they’ll need and will likely be more motivated to adjust retirement contributions accordingly.

Employees with a ‘planning mindset’ are more than 40 percent less likely to have financial stress. A planning mindset is a tendency towards setting short-term and long-term financial goals. Those who have one are twice as likely to say they’re ‘thriving’ and have three times more household retirement savings than those without a planning mindset. Employer-sponsored tools that simplify and automate the planning process make it easier for employees to develop and maintain a planning mindset.

Employers can also help employees plan for retirement by giving them access to professionals who can answer questions, clarify the process and give them direction to improve their preparation. The Society for Human Resource Management found companies providing access to investment retirement advice increased almost 15 percentage points over the last five years, and over 50 percent of organizations offered online advice in 2018, a 50 percent increase from 2017.

What Benefits Do Employees Want in the New Year?

by LizStevens | Dec 20, 2018 | Blog

What benefits do employees want in the new year? Employees want benefits that support employees’ diverse needs like transgender-inclusive healthcare benefits, fertility assistance and pet perks.

Over 30 percent of employers increased their benefits in 2018, according to research by the Society for Human Resource Management (SHRM), a trend likely to carry over into 2019 as employers continue to wrestle with low unemployment.

Healthcare benefits have been a hot topic this year, but healthcare regulation is in flux and as costs soar across the board, cost-management has become a priority. According to the International Foundation of Employee Benefit Plans (IFEBP), employers are looking to solutions like telemedicine, nurse advice lines and healthcare claims utilization analysis to help rein in expenses. Wellness programs that help employees improve physical, emotional and financial health have also skyrocketed in popularity as another way to manage burgeoning healthcare costs.

New healthcare benefits are going to be equally important in 2019. Employees have a wide range of needs and company culture/inclusivity are factors that future candidates are likely to take into consideration when evaluating job offers.

Employers have started to meet the demand for diversified healthcare benefits. The IFEBP found nearly 30 percent of employers now offer transgender-inclusive benefits, like coverage of sex-reassignment surgery or subsidies for cosmetic procedures, such as electrolysis, mastectomy and Adam’s apple reduction surgery. Employers are also adding more fertility benefits. Close to 20 percent of companies offer financial assistance for adoptions, egg harvesting/freezing, fertility treatments and counseling.

Another big benefits trend in 2018 that’s likely to carry over into 2019 is the rise of pet perks. SHRM found nearly 10 percent of organizations now allow pets at work or offer pet health insurance. Some companies have gone as far as offering paid time off or the flexibility to work from home for employees who adopt a pet, referred to affectionately as ‘paw-ternity leave.’

While healthcare cost-management and benefits inclusivity are industry trends likely to see more growth in 2019, that doesn’t mean they automatically make the most sense for every employer. Employee benefits engagement is difficult and under-utilization is often an issue employers need to strategically tackle. Including employees in the benefits selection process, whether it be through polls or surveys or direct employee involvement in meetings, will help employers offer benefits that make the most meaningful impact in the lives of their employees.

How to Make Traditional Work Better for Freelancers

by LizStevens | Dec 18, 2018 | Blog

How do you make traditional work better for freelancers? Freelancers have traditional jobs too and what they want to get from them is predictable income flow and the flexibility to continue their freelance work.

More than one in five freelancers are also employed at established companies and for most, their traditional job is their primary source of income, according to recent research by FlexJobs.

Freelancers and others working in the gig economy are looking for flexibility from potential employers. Striking the right balance between structured work and flexible work arrangements is important for employers who want to stay competitive because unemployment continues to hover at a historic low.

Research by Edelman Intelligence found some form of formal employment is necessary for most freelancers because, in most cities, the average freelancing rate falls well below the compensation needed to afford an apartment independently, and in some cases, even with a roommate.

If freelancing isn’t enough to cover basic housing costs, why are more than 57 million Americans still doing it? More than 90 percent of FlexJobs’ survey respondents said the freelancing lifestyle is important to them because of benefits like a flexible schedule, work-life balance, no commuting, self-development and the freedom to choose where they work. Over 60 percent of freelancers said it had a positive impact on their overall quality of life. Freelancing helped them become healthier, less stressed and they’re either less financially stressed or feel no difference from when they worked in a traditional job.

The two biggest challenges for freelancers are finding clients and having predictable income flow. They also struggled with handling the business aspects of freelancing (taxes, insurance, etc.), getting payment from clients and dealing with the perceptions of freelancers.

Employers likely already have at least one freelancer in the office, though they might not know who it is, because nearly 35 percent of GenXers and Baby Boomers and over 20 percent of Millennials are in the freelance workforce. And most of them aren’t entry-level employees either, more than half of freelancers described themselves at the intermediate or management levels of their careers.

Traditional jobs help freelancers gain predictable income flow but complicate their work-life balance. A normal job could limit the scope of projects they can take on, their availability to meet deadlines and limit timeframes they can meet with potential clients. Finding additional flexibility for freelancers who need it can build company loyalty and boost job satisfaction. Most freelancers are going to need a traditional job to afford housing costs, so why not employ them, give them the flexibility they need and benefit from their tenacious skill set?