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Financial Wellness: The Missing Piece of Your DEI Strategy

Financial Wellness: The Missing Piece of Your DEI Strategy

by | Jan 11, 2023 | Blog

Financial Wellness: The missing piece of your DEI strategy. Financial wellness could be the key benefit that your DEI initiative is missing. Here’s what to consider.  

Organizations are constantly trying to improve diversity. But while progress has been made, many workplaces are still a long way from achieving true equity. 

The median wealth for white households is $187,300, according to data released by the U.S. Census bureau. However the median wealth is only $31,700 for hispanic households and $14,100 for black households.

This imbalance highlights just one aspect of the stark wealth equality problems that still exist both in the office and at home. For teams looking to bridge the opportunities gap between employees of different backgrounds, one thing is clear: Financial Wellness is a key piece of DEI. 

Financial Wellness: The missing piece of your DEI strategy.

An emerging strategy to increase diversity, enquiry and inclusion that corporations still underrate is utilizing financial wellness resources. Employing a comprehensive financial wellness program is a great way for management to understand and tackle the unique personal finance problems that confront each of their workers. It also can be a great way to retain and attract talent as 4 out of 5 employees said they would prefer benefits over a pay increase, per Human Resources Director.

A financial wellness solution is only an assistant on the journey towards equality. Being transparent and vocal with your employees about unequal discrepancies in wages can help increase employee mood and assist in restoring the economy. According to the Bureau of Labor Statistics, women make 82 cents for every dollar a man makes. Additionally, black and latina women with a bachelor’s degree make 65% of what a white man with the same education makes. This gap in pay can be easily overlooked when talking broadly about equity and inclusion, so addressing these problems head on is a great step forward towards a solution.

Many of these issues have been more prevalent since COVID-19 became an issue. Since the beginning of the pandemic, stress levels have increased across the board for many workers. According to SoFi at Work, 51% of employees are more stressed about their finances now than they were at the height of the pandemic. Additionally, employees spend around 25% of their workweek dealing with financial issues. This stress can be increased due to a lack of financial literacy and a feeling of hopelessness when confronting the turbulent economic situation of today. Providing a comprehensive financial wellness program can ease stress and allow workers to focus on their work.

Elevate your DEI initiatives with Best Money Moves.

Best Money Moves is a financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As a comprehensive financial well-being solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age. 

Whether it be college planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. 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.

Financial Stress in 2023: 3 Problems Facing Your Workforce

Financial Stress in 2023: 3 Problems Facing Your Workforce

by | Jan 10, 2023 | Blog

Financial Stress in 2023: 3 Problems Facing Your Workforce. 2023 is shaping up to be a tough financial year. Keep an eye out for these 3 major causes of financial stress among your employees.

Average savings decreased by 15% in 2022, according to Northwestern Mutual’s 2022 Planning & Progress Study.  What’s more, data from the same study confirms that over half of U.S. adults feel somewhat or very anxious about their financial situation. 

With a recession looming in 2023, helping employees bolster their financial health should be at the top of every employer’s to-do list. Here are the top 3 financial issues facing your workforce in 2023.

1. Inflation remains the top cause of financial stress for many employees.

Inflation was one of the biggest news stories throughout 2022, so it’s no surprise that rising prices remain top of mind for many employees. According to CNN, global inflation rose from 4.7% in 2021 to 8.8% this year and is projected to be at 6.5% in 2023. This growth has forced families to tighten their budgets and make tough choices about competing expenses. In a survey of roughly 1,000 U.S. adults conducted by NPR/PBS news, 72% reported having to cut at least one major expense in the wake of rising inflation. 

Stress over inflation and other financial hurdles frequently follows employees into the office. Financial stress results in higher levels of absenteeism and lowered productivity. The American Institute of Stress reports that more than 275 million days of work are lost annually due to the stress of American workers.

2. Rising interest rates could slow your employees’ financial progress.

To help combat inflation, the Federal Reserve has steadily raised interest rates throughout the course of 2022. According to the Economist, the markets are expecting the Federal Reserve to raise interest rates as high as 5% in 2023. Increased interest rates may help curb inflation, but they also present a stumbling block for employees on the road to homeownership or debt repayment. This is especially true for households of color, according to data from housing research nonprofit, the Urban Institute. Many of these households are still recovering from the significant financial ramifications of the COVID-19 pandemic. 

It should be a major focus for employers to help workers assuage their fears around interest rates and provide assistance for their personal finances. Including these benefits not only increases the well-being of current staff, but also entices potential newcomers. According to Financial Wellness Magazine, 40% of employees say that financial planning and education benefits are important when deciding a new job. These programs are also increasing in importance for younger generations, so providing financial wellness programs can also set your company up for the future.

3. Slowing economic growth creates financial stress and uncertainty about the future.

Looking towards 2023, global economic prospects are the 3rd weakest since 2021, according to the International Monetary Fund. The effects of the slowdown have fully trickled down, affecting many Americans and their salaries.  

According to CNBC, 60% of Americans are currently living paycheck to paycheck. Many people who are used to living comfortably have been forced to drastically cut costs and change their spending behavior. It can be difficult to pin down what areas are hurting your personal finances the most. Utilizing a comprehensive financial wellness program is an effective tool to combat your employee’s personal finance woes.

Give your 2023 Employee Benefits a boost with a financial wellness solution from Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help employees dial down their financial stress and meet their most top-of-mind financial goals. With budgeting tools and personalized money coaching, users can easily receive compressive financial advice right from their phones. 

Best Money Moves is designed to guide employees through difficult financial times and topics. 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.

4 Top 2023 Employee Benefits

4 Top 2023 Employee Benefits

by | Jan 9, 2023 | Blog

4 top 2023 employee benefits. Here are the trending employee benefits that companies are investing in for 2023, to help cope with financially stressful times.

The International Monetary Fund estimates that 2023 will see global economic growth decline to only 2.7 percent in 2023. This is a significant drop from the 6.0 percent growth recorded in 2021, and the lowest since 2001. 

Employers should consider these numbers when planning their 2023 employee benefits: A recession is likely on the horizon. 

The top 2023 employee benefits 

Here are 4 top 2023 employee benefits to inspire your staff and keep them feeling secure in a financially uncertain year. 

1. Financial wellness benefits

Ninety-seven percent of employers feel responsible for employee financial wellness, according to a 2022 study conducted by Bank of America. And 91% of employers report a higher level of employee satisfaction when providing financial wellness resources to their teams. It’s no surprise that more workforces are adding financial wellness benefits in 2023.

What’s more, research shows that financial stress is debilitating to productivity. A company of just 50 employees will face a productivity loss of upwards of $87,000 due to individual employees’ financial stress and those numbers only increase along with the size of your organization. Employers looking for ways to ease the burden of financial stress, while improving overall productivity and well-being should consider adding a financial wellness offering to their 2023 employee benefits package.  

2. Mental health support

The Money and Mental Health Policy Institute depicts the relationship between financial and mental wellness as a cycle: Financial strain can cause stress, anxiety, depression and other mental health challenges. This lack of motivation can in turn make it harder to earn and manage money, resulting in more financial stress. The cycle of financial stress and depression is found to have long-term, lingering effects on employee well-being.

Luckily, employers are poised to help by expanding mental health coverage in 2023. According to benefits expert SHRM, nearly 83% of wellness plan providers plan to assist with finding employee mental health care in addition to other wellness support. These resources, in addition to strong financial wellness efforts, can greatly alleviate employee pain points.

4. Increased work-from-home options

Many companies are also exploring permanent work-from-home options. According to Fortune, 78% of employers will offer the option to work from home regularly in 2023, and 66% will offer a four-day workweek or will work with employees to craft a flexible schedule. 

Remote or hybrid work can have strong benefits for employees. McKinsey’s American Opportunity Survey worked with market research leader Ipsos to survey 25,000 Americans on whether or not they would benefit from the option to work from home, returning 58 percent. With the cost of gas on the rise, allowing employees to work from home will relieve them of any transportation expenses. Additionally, just having the option to stay home means more personal time with no headache of a long commute. And for parents, it can mean being available to fit vital childcare around work duties.

Give your 2023 Employee Benefits a boost with a financial wellness solution from Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help employees dial down their financial stress and meet their most top-of-mind financial goals. With budgeting tools and personalized money coaching, users can easily receive compressive financial advice right from their phones. 

Best Money Moves is designed to guide employees through the most difficult financial times and topics. 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.

The State of American Financial Wellness and Financial Stress, 2022

The State of American Financial Wellness and Financial Stress, 2022

by | Dec 13, 2022 | Blog

The State of American Financial Wellness and Financial Stress, 2022. The Covid-19 pandemic changed Americans’ relationship to their personal finances. Here are the top financial wellness and financial stress highlights from 2022.

The Covid-19 pandemic has dramatically changed Americans’ relationship to their personal finances. Study after study has found that more than half of Americans live paycheck-to-paycheck. One- third of those earn more than $100,000 per year, but still struggle to make ends meet. Indeed, midway through 2022, a new survey found that nearly one in three consumers earning $250,000 or more annually is living paycheck-to-paycheck.[1] Another study[2] found that 75% of U.S. employees are facing at least one source of major financial stress and are spending 9.2 work hours per week dealing with their finances. 

Globally, consumers face extremely high rates of inflation while food, fuel and housing costs soar. Household debt climbed past $16 trillion in the second quarter, with credit card balances surging 13% in the past year. Rising interest rates strain pocketbooks, and that doesn’t include $1.6 trillion in student loan debt repayments, which have been suspended since the start of the pandemic, in 2020.

Clearly, personal financial stress is on the rise.

Generational Financial Stress

Americans from all generations struggle with financial stress: [3]

  • 63% of all employees say their financial stress has increased since the pandemic started
  • 42% of full-time employees struggle to pay household expenses on time each month
  • When it comes to personal finances, 87% of employees want help and 84%[4] believe their employers should be responsible for their financial wellbeing.

But, it appears that younger workers are struggling more:[5]

  • The majority of Gen Z and Millennials (about 70%) have high financial stress due to the pandemic;
  • 29% of Gen Z says the cost of living (meaning housing, transportation and bills) is their most pressing concern and 46% say they live paycheck-to- paycheck;
  • 72% of U.S. millennials carry some form of non-mortgage debt, with the average millennial owing $117,000;[6]
  • 63% of Millennials believe it will take them one to five years to pay off their debt, 9% think it will take them more than 10 years, and 6% think they’ll never pay it off; [7]
  • And while Millennials and Gen Z want to buy homes, Gen Z is currently unable to afford a median priced home in any of the top 100 markets. Millennials can only afford a median priced home in 34 of the biggest 100 metro areas.[8] 

Millennials, Gen Z and Student Loan Forgiveness

A top concern for many Millennials is their looming student debt. About 30% of Millennials carry a student loan, and in many cases, these loans have affected their ability to meet financial goals.[9] Over 30% of Americans put off buying a home because of looming student debt, and almost 25% of Americans have limited their retirement and emergency savings due to outstanding student debt.[10]

In August, President Biden announced widespread student loan forgiveness up to $10,000 of debt for borrowers who earn less than $125,000 per year or married couples (or heads of households earning less than $250,000). An estimated 37 million Americans out of 45 million who hold student loan debt may be eligible.

While those eligible for student loan forgiveness will not have to pay federal income tax on the amount that is forgiven (which the IRS treats as a gift), more than a dozen states may impose state income tax on the forgiven amount.

Baby Boomers, Gen X and Financial Stress

Conversely, Baby Boomers tend to report the least amount of financial stress. In fact, just 14% of Baby Boomers say that debt has affected their quality of life, and more than half say they have control over their debts.[11]

Gen X falls somewhere in the middle. They carry looming debt and financial stress, but are working to dial it down. In 2021, almost 48% of Gen Xers reported a good or great sense of financial wellness, up from 38% in 2020. This is the largest percentage point increase for any generation for reported financial wellness.[12]

However, across all generations — from Gen Z to the Silent Generation — financial wellness and security during retirement remains a primary concern.[13] 

Turnover, Retention & Financial Stress

There’s more bad news for companies struggling to keep employees. Several recent studies found that employees are more likely to look for a new job if they’re financially stressed.

  • Financially-stressed employees are twice as likely to change jobs as those who aren’t;
  • Among 44% of employees looking to change jobs[14], 65% say the reason is financial: they need more money;
  • 76% of employees looking to change jobs would prefer to work for a company that cares about their financial wellbeing;
  • 49% of employees have experienced a financial shock, including a significant medical expense (31%) followed by working hours cut (23%) fraud (15%) and the impact of divorce (13%).

Moreover, there’s a stark disconnect in what people want in financial wellness programs versus what they’re being given. Employers are well positioned to help change that. 

Financially Stressed Employees Have Worse Health Outcomes

One of the most concerning elements of financial stress is the relationship to physical and mental health. People who are financially stressed are much more likely to struggle with substance abuse, be overweight and have worse health outcomes than their non-stressed peers. They’re also much less likely to be engaged at work. But with inflation running rampant, other cracks are emerging:

  • One-third of those who find it difficult to afford healthcare deferred appointments or treatments and say their health suffered because of it;
  • For employees whose financial stress increased over the pandemic, about 60% avoided seeking medical treatment due to high costs;
  • Among financially-stressed employees, 49% said that money worries had a severe or major impact on their mental health in the past year.[15] 

One way to improve workforce financial wellbeing is to help employees make a smarter decision about healthcare coverage. Best Money Moves’ partners have seen employees save an average of $1,300 per year simply by making better decisions based on actual claims data, while employers have seen usage go up and, in some cases, overall costs decline.

Financial Health of Americans

About 35 million Americans are estimated to be financially vulnerable, which means they’re struggling with almost all aspects of their financial lives. Comparatively, about 131 million Americans say they’re coping financially, while struggling with some aspects of their financial lives.[16]

Many societal and pandemic-related trends have shaped the financial challenges people face (e.g., rising costs of living, workplace instability, earning gaps, etc.).

Although almost 80% of Americans have an emergency fund, less than half can cover six months of expenses. And even those with high financial wellness, one in five cannot easily cover six months of expenses.[17] All of this paints a worrying picture of financial health for most Americans, especially with many economists forecasting a recession in 2023. 

Employees want more than just retirement assistance

One of the most-requested benefits in 2022 is financial wellness support. Companies tend to only offer retirement plans and safety net insurance. Employees don’t think it’s enough.

Over 80% of employees want personal finance help from their employers, beyond the typical retirement plans and safety net insurance.[18] Employees need to learn basic money management and prefer to get money coaching, budgeting help and other resources that can help them achieve their financial goals.

The benefits are clear: employees who participate in financial wellness programs are twice as likely to have high financial wellness than those not offered such resources (32% vs. 15%).[19] The ROI for employers includes reduced turnover, improved retention and productivity, fewer workplace accidents and healthier employees, among other benefits.

Best Money Moves can help. Personalized, gamified and easy-to-use, Best Money Moves helps employees budget, make better financial decisions and implement their personal best money moves to achieve their most specific financial goals.

About Best Money Moves

Best Money Moves helps your employees measure and dial down their financial stress, with measurement tools, 900+ written and video resources, and best-in-class voluntary benefits to supplement those you already offer. Depending on the version chosen, you may be able to integrate your own company benefits into the platform, personalizing the financial wellness journey your employees are on. Call us for a demo and find out how adding a great financial wellness benefit can help improve retention, lower turnover and reduce healthcare costs.

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.

1 New Reality Check: The Paycheck-To-Paycheck Report – Financial Distress Factors Edition, PYMNTS and LendingClub survey, 2022
2 https://www.sofi.com/sofi-at-work/workplace-2022/
3 2021 PwC Employee Financial Wellness Survey, PwC, 2021
4 https://www.sofi.com/sofi-at-work/workplace-2022/
5 https://www.forbes.com/sites/markcperna/2022/05/23/deloitte-almost-half-of-gen-z-workers-live-with-financial- anxiety-every-day/?sh=3ecd0cd97073
6 https://www.realestatewitch.com/millennial-debt-2022
7 https://www.realestatewitch.com/millennial-debt-2022
8 https://www.point2homes.com/news/us-real-estate-news/unaffordable-housing-by-generation-100-counties.html
9 https://educationdata.org/student-loan-debt-by-generation
10 https://www.cnbc.com/2021/04/08/older-millennials-with-student-debt-say-their-loans-werent-worth-it.html
11 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
12 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
13 https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0905/documents/2021-WBR.pdf
14 https://www.wtwco.com/en-US/Insights/2022/06/2022-global-benefits-attitude-survey
15 https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness- survey.html
16 https://fhn-finhealthnetwork-assets.s3.amazonaws.com/uploads/2021/10/2021_Pulse_Trends_Report.pdf
17 https://www.tiaa.org/public/pdf/2022_financial_wellness_survey_final_results.pdf
18 https://www.brightplan.com/2021-wellness-barometer-survey
19 https://www.tiaa.org/public/pdf/2022_financial_wellness_survey_final_results.pdf 
Financial Wellness Leads to Employee Retention, Says Bank of America Report

Financial Wellness Leads to Employee Retention, Says Bank of America Report

by | Dec 5, 2022 | Blog

Financial wellness leads to employee retention, says Bank of America report. Researchers find increasing evidence between financial wellness benefits and employee retention. Plus, 4 more highlights from the survey.

Employers are starting to realize the fuel value of financial wellness benefits. Compared to last year, more companies are offering financial wellness benefits and about 85% of employers say they reduce employee attrition, according to Bank of America’s 2022 Workplace Benefits report.

a helpful statistic about the connection between financial wellness programs and employee retention

Financial wellness resources are just one of many ways that companies can boost employee retention and attract top talent. Here are four retention-boosting ideas fit for any workforce:

1. Improve employee retention by investing in the health of your team.

Since the onset of the Covid-19 pandemic, companies have taken a more holistic approach to employee wellness. Instead of just focusing on physical health, companies have started offering benefits that support employees’ mental, financial and emotional health, too. In fact, 97% of employers feel somewhat responsible for their employee’s financial wellness, according to Bank of America’s survey. 

Exhibiting genuine care for employees’ wellbeing and wellness goes a long way, especially with attracting the best and brightest talent. Studies have shown that employees actively seek out companies that are invested in employee wellbeing, even if that means looking for a new job. 

2. Elevate DEI initiatives and programs.

Today, young employees are increasingly more diverse than older generations. In fact, only 17% of the Baby Boomer workforce is diverse, compared to 35% of the Gen Z and Millennial workforce. To capture top, diverse talent, companies have invested in diversity, equity and inclusion (DEI) efforts. When enacted efficiently, these DEI efforts can simultaneously bolster recruitment and talent management efforts.

About 3 in 4 employers believe that DEI programs are important for retaining talent, per the same Bank of America survey. Moreover, the diverse talent that flow through these corporate DEI programs are set to become the future leaders of tomorrow.

3. Help employees build future wealth to reduce employee retention.

Preparing for retirement doesn’t happen overnight, neither does accumulating wealth. Both processes require commitment and dedication over time, and more importantly, the resources to fund such efforts. Many Americans find it difficult to manage their current expenses and future savings, this likely explains why 1 in 4 Americans don’t have any retirement savings, according to a PwC survey. 

To help employees build future wealth, consider offering company match programs or financial advising to your workforce. Company match programs help employees multiply their retirement funds with the financial help of their employer. On the other hand, a financial advisor can help employees balance current and future money goals, with a personally tailored financial plan to follow. Both solutions are ways to help employees increase their financial security for the future.

4. Welcome upward feedback from all employees.

One way that companies continue to remain agile and grow is by incorporating upward feedback, a development evaluation for direct managers or upward leadership. 

Don’t wait until exit interviews to find out what’s working well and what needs tinkering, hold your firm accountable by actively commentary about the current ways of working. Leverage upward feedback as an opportunity to find out what makes people seek opportunities elsewhere and what makes them stay. 

Looking for a premium financial wellness solution to improve employee retention? 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 a comprehensive financial well-being solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age. 

Whether it be college planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. 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.