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5 Surprising Symptoms of Financial Stress (And 5 Helpful Solutions) Read it here.

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What Causes Financial Stress?

What Causes Financial Stress?

by | Mar 28, 2023 | Blog

What causes financial stress? Here are 3 of the top causes of financial stress among your team. (Plus, what you can do about them.) 

According to a study by the FINRA Investor Education Foundation, 60% of American adults feel anxious while thinking about their personal finances, and 50% feel stressed when talking to another person about their finances. There are many reasons that an individual could be suffering from financial stress.

Here are 3 root causes and then a way employers can lend a hand in calming those concerns.

1. Lack of access to emergency cash

The COVID-19/Coronavirus pandemic forced many families to tap into cash reserves, making it more difficult to prepare for the future. According to a study by ALM Benefits Pro, a dwindling emergency fund was the 3rd most common cause of financial stress across all participants and the most common cause amongst respondents over 65. Having an emergency fund is crucial to avoid pitfalls such as accumulating credit card debt or taking out high-interest loans. It is important to assist employees in setting healthy savings goals from their paychecks in order to alleviate financial stress from this root cause.

2. Poor money management skills

The weight of this financial stress can lead to cyclical overspending and other poor personal finance habits. Many Americans in general don’t know that they are often spending hundreds of dollars a month in unnecessary excess. According to a survey by OppLoans, 73% of Americans said that they did not follow a budget. The best budgets can identify areas where non-essential spending is too high so employees can address those problems head-on.

3. Persistent debt

During the pandemic, a high percentage of Americans needed to go into debt in order to cover their basic expenses. This debt has persisted into the current day and is the most common cause of financial stress. According to Business News Daily, six in ten employees admit they are concerned about the amount of household debt they have and are also stressed by the lack of employer resources that address those problems. It is important for companies to provide financial wellness benefits that are comprehensive and accessible to employees.

What to do about financial stress in the workplace?

Financial stress affects not only the mental health of your employees but also their focus and productivity. Lost hours and poor performance can have a tangible effect on your organization’s bottom line. According to the Financial Post, employee financial stress cost U.S. employers $40 billion dollars in 2022. This loss is due to increased absenteeism, diminished productivity and an increase in workplace accidents.

It’s important for employers to take a stand and start addressing these problems. Adding a personal finance wellness solution. According to the 2021 PWC Employee Financial Wellness Survey, 88% of U.S. employees utilize the financial wellness programs that their companies offer. The new wave of incoming workers is increasingly placing the responsibility of personal finance squarely on the shoulders of the employer. According to that same study, 65% of Gen Z employees say that their employers are responsible for their financial wellness. Providing a comprehensive financial wellness program is a signal to employees that their best interests are the company’s best interests while also increasing productivity.

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.

What is DEI? (And What’s Missing from Your Strategy?)

What is DEI? (And What’s Missing from Your Strategy?)

by | Mar 28, 2023 | Blog

What is DEI? (And what’s missing from your strategy?) DEI is a key piece of any successful organization. Here’s how DEI can transform your workforce.

Diversity, equity and inclusion initiatives are integral to a successful benefit strategy. Companies with a diverse workforce earn 19% higher revenue than their non-diverse competitors, according to a study by the Boston Consulting Group.

Keep reading to learn how DEI initiatives benefit employees and organizations and what you can do to improve your company’s DEI strategy.

What is Diversity, Equity, and Inclusion? (DEI)

DEI initiatives are programs designed to promote practices that combat inequities within your organization. The goal of these initiatives is to create a workplace culture where everyone feels valued, regardless of their race, ethnicity, age, gender, religion, sexual orientation, gender identity, disability, economic status or other diverse background. DEI initiatives can include everything from celebrating cultural holidays office-wide to creating mentorship programs for minority groups.  

Diversity initiatives can benefit your organization in a number of ways. First and foremost, they help to attract and retain a robust team. According to a 2021 Glassdoor survey, 76% of current and aspiring employees report that a diverse workforce is an important factor when evaluating companies and job offers.

A diverse team also brings a wider range of perspectives to the table, which can lead to better ideas and a greater array of problem-solving strategies. In addition, by providing training on how to overcome unconscious biases, you can create an  equitable workplace where everyone has an opportunity to succeed. This can lead to increased morale, teamwork and productivity. In fact, companies with a diverse workforce are 1.7 times more innovative, per Forbes.

Finally, companies that have more diverse teams can connect with a wider range of customers and clients, which improves your organization’s bottom line. According to a 2020 McKinsey study, companies in the top quartile for being ethnically and culturally diverse are 36% more profitable than those in the bottom quartile.

4 initiatives for your benefits program

Despite the clear benefits of diversity initiatives, however, some employers still struggle to create strategies that stick. Here are a few key areas where DEI initiatives can help improve your benefits program:

Pay transparency: Even if your company has a diverse workforce, there may still be disparities in upward mobility based on race and gender. In order to create a truly inclusive workplace, your company needs to ensure that all employees are paid fairly and have equal opportunities for advancement. According to a Visier survey, 68% of employees would switch employers for greater pay transparency, even if compensation was the same.

Financial education solutions: Raising the baseline financial literacy for your employees is one of the best ways to improve equity within your organization. 73 percent of employees who receive financial wellness training from their company say it helps them feel more secure, per TalentLMS. Providing tools that limit financial stress can have substantial impacts on the wellbeing of your employees and your company.

Inclusive hiring practices: In order to truly create a diverse team, your company should examine its hiring practices and ensure that it is inclusive and fair. This may involve removing biases from job descriptions, using diverse candidate pools and ensuring that hiring managers are trained on unconscious bias.

Cultural awareness programs: A diverse workforce will not thrive in an environment that is not inclusive. Your organization should create a culture where everyone feels valued, regardless of their background or identity. This may involve providing sensitivity training and creating a zero-tolerance policy for discrimination and harassment.

Support financial equity in your workplace with comprehensive financial education from 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.

4 Surprising Ways Financial Stress Impacts Your Team

4 Surprising Ways Financial Stress Impacts Your Team

by | Feb 8, 2023 | Blog

4 surprising ways financial stress impacts your team. Whether you know it or not, your team is struggling with financial stress. Here’s what you could be missing. 

Financial stress is on the rise among American workers and, whether you know it or not, your team is feeling the effects. The Thriving Wallet Survey, conducted by Discover and Thrive Global highlights startling financial health statistics and dives into the connection between workplace performance and employee mental health. 

Here are 4 surprising insights from the survey highlighting the ways that financial stress could be affecting your team.

 

1. Money is the number one cause of stress in the United States.

As the world recovers from the effects of the COVID-19 era, many managers are trying to return to “business as usual” without keying in on the longer-lasting ramifications of the pandemic. While the cause of the problem does not fall solely on employers, many employees feel as if their organizations should be doing more to assist their personal finances. A Bank of America study found that 82% of employees say employers should play a role in supporting their financial wellness. Additionally, in the same study, 97% of employers feel responsible for their employees’ financial health. While many employers feel responsible, few are making enough action towards solving the issue.

2. Over 35% of employees wish they could have a “fresh start” in regards to their finances.

While 35% of employees feel this, taking the steps necessary in order to retool their financial health can be difficult and embarrassing. Providing financial health benefits not only makes it easier for employees to access financial education, but helps destigmatize the idea of receiving personal finance assistance.  According to a recent survey conducted by Commonwealth and MetLife Foundation, 65% of workers said employers should be doing more to address financial insecurity. Part of “doing more” includes proactively taking measures to ensure the most people are comfortable participating in their benefits.

3. Ninety percent of individuals say that they are impacted by financial stress.

In a study by the Anxiety and Depression Association of America, 56% of employees reported that their anxiety and stress impacted their work performance. Stressed employees turn into distracted and unproductive employees. Providing financial wellness benefits is a mutually beneficial practice amongst employers and employees. Also, taking extra steps in order to ensure the mental health of employees can help businesses attract and retain staff.

4. Employers lose up to $250 billion dollars per year due to employees’ financial stress

With talks of a potential recession populating the front page of many major news sites, organizations should act now in order to help assuage concerns and ensure the health of their employees. Providing employees with financial health benefits not only increases the wellbeing of employees, it can also provide financial benefit to organizations. The most effective benefits strategy is to provide a comprehensive financial wellness platform that can be personalized to each employee’s unique needs.

By offering financial wellness programs, like Best Money Moves, employers can help employees manage their financial stress.

Best Money Moves is a mobile-first platform that offers personalized financial planning and coaching resources, focused on solving your employees’ pain point. The program uses artificial intelligence, along with a human-centered design, to measure employee financial stress and then dial it down with personalized solutions. Our triggers and alerts system — as well as budgeting tools, personal finance resources and more — help guide employees to make more informed financial decisions and reduce their overall stress.

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 Improve Your Employee Retirement Benefits

3 Ways to Improve Your Employee Retirement Benefits

by | Jan 31, 2023 | Blog

3 ways to improve your employee retirement benefits. Retirement benefits are a vital tool for your workforce. Here are three key ways to support your team with better retirement options. 

Almost 4 in 10 employees say they’re not confident about reaching their retirement goals, according to a 2022 Bank of America report, and even more are unsure if they have enough savings to retire. 

When it comes to retirement benefits, employees are looking for more than just a 401(k) — they want comprehensive guidance on how to prepare for the future. Here are 3 ways to help all employees get prepared for life during retirement.

1. Supplement retirement benefits with a digital financial wellness program that offers the latest technology.

Today, most employees prefer to manage their finances using digital apps and technology (including banking and investing), according to Bank of America’s 2022 report. And since employees are generally comfortable with using technology to manage their finances, consider delivering financial resources the same way. Similar to digital banking and investing tools, digital financial wellness programs offer a streamlined dashboard that help employees track their financial goals and debts. 

Many digital financial wellness programs offer easy-to-use tools and resources for users to engage with on their own free time, like nest egg calculators, personalized savings plans and other retirement ready resources. Moreover, employees can learn how to manage competing financial goals like tackling credit card debt, while saving for retirement.

2. Educate employees Social Security, Medicare and other retirement benefits.

While Social Security and Medicare are designed to help aging and retired populations, unfortunately, many of these benefits get left on the table due to lack of knowledge. About half of employees say they aren’t getting enough education about Social Security and Medicare benefits. Without knowing the importance of these benefits, employees are less likely to seek them out.

For ideas on how to educate employees on their benefits, consider using targeted email marketing or hosting financial planning workshops (food and refreshments are always a good incentive). 

With the right education on their benefits, employees can appropriately plan for the future and its associated costs, like supplemental health care, for example. One in 3 medical costs in retirement are not covered by Medicare. By understanding what’s covered in Medicare’s policy and what’s not, employees and pre-retirees can make the appropriate adjustments for retirement preparedness.

3. Invest in 1:1 financial consulting.

In addition to a retirement account, employees are looking for financial advice on how to best prepare for retirement. About 60% of employees said they feel stressed while managing their retirement savings, according to a Goldman Sachs report. With a financial advisor, employees can develop a comprehensive retirement plan with less stress and in less time. 

All employees are in different stages of retirement preparedness and security. Some may be at the beginning stages and need help simply choosing between a Roth IRA or 401(k). Others may have thousands already saved for retirement and need help shifting from saving to using retirement funds. 

No matter one’s age or stage of retirement preparation, most people can benefit from money coaching and guidance. And rather than giving cookie-cutter advice, the best advisors will give employees personalized counsel that empowers them to make well-informed financial decisions.

Looking for a digital financial wellness program to bolster your retirement benefits? 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 retirement 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.

4 Surprising Financial Facts About Millennial and Gen Z Employees

4 Surprising Financial Facts About Millennial and Gen Z Employees

by | Jan 25, 2023 | Blog

4 surprising financial facts about millennial and gen Z employees. Your Millennial and gen Z employees are struggling with unique financial issues. Here are 4 things to know about the youngest members of your team.

Millennial and Gen Z employees struggle with unique financial issues and are turning to employers for help. A recent, in-depth survey conducted by Prudential Financial found that many employees in the younger generations are seeking additional financial assistance in order to bring stability to their lives.

Here are 4  surprising financial facts about Millennial and Gen Z employees.

1. Many millennials find their salaries insufficient and turn to outside income to support their costs of living.

According to the same Prudential study, millennials and Gen Z were more likely than Gen X or baby boomers to turn to gig work, take on debt, or receive monetary support from family to meet their financial goals. In addition, one-third of millennials and 46% of Gen Z have switched employers since the start of the pandemic, compared to 29% of all workers. Many of these workers believed that changing employers every few years was the best way to increase their earning potential. When searching for new jobs, younger generations often sought out more flexible ways of working and more financial support from their employers. 

Financial wellness tools can provide employees with a snapshot of their current situation, including how much they are spending, how much they are saving, and what debts they may have. This can help employees identify areas where they may be able to improve their financial health.

2. Millennials often do not have emergency savings.

Fifty percent of all survey respondents had less than $500 or no emergency savings fund and nearly 4 in 10 respondents reported they are not on track to meet their long-term goals. The survey also found that more than half of all respondents believed that the pandemic had a negative impact on their long-term financial security. Over half of millennials said that debt prevented them from accomplishing personal goals, like owning a home and starting a family.

According to a 2021 study from the Federal Reserve, families with increased financial literacy had more savings on average and were better equipped to handle unexpected expenses.

3. Student loan debt for many millennials negatively impacts their mental health.

Almost one third of respondents said student loan debt was a barrier to accomplishing their personal goals. Offering financial wellness tools can help your own employees develop strategies to improve their own economic well-being. A 2019 study from ADP, the most recent data available, found that almost 90% of employers and employees believe that financial wellness, including student loan debt management, is important to overall well being. The study also found that 8 in 10 employees believe that companies should “take an interest in the financial well being of their workers.”

4. Millennial and Gen Z workers look to their employer for support in times of financial need.

Almost 60% of Gen Z and millennial workers believe their employer has a responsibility to help them feel more financially empowered. 29% of millennials who switched jobs in the last year took a pay cut, with over a quarter of millennials attributing the change to wanting to achieve a better work/life balance.

Financial stress can have negative impacts on mental health and may affect employees’ work performance. With financial wellness programs, employers can support their millennial and Gen Z workers to help mitigate concerns. Budgeting, savings and debt management tools simplify common money problems and help employees reach their financial goals.

Luckily, employers see improved employee outcomes by addressing financial stress head on. According to a Bank of America study, 84% of employers say that offering financial wellness tools helped increase employee retention. 

Provide the unique support that millennial and Gen Z employees need by offering financial wellness tools from Best Money Moves.

If you are looking for a financial wellness program that can alleviate some employee stress, try 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 wellbeing solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing, regardless of one’s income level and background. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age and financial background. 

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.

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.