Log in
Book a Demo

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

Book a Demo
4 Factors Driving the Great Resignation (And What You Can Do to Help)

4 Factors Driving the Great Resignation (And What You Can Do to Help)

by | Oct 19, 2021 | Blog

4 factors driving the great resignation (and what you can do to help). With the U.S. in the middle of a mass-employee exit, it’s vital for employers to look at the root causes. 

An estimated 1 in 4 employees quit their job in 2021, according to data from analytics firm Visier, with more expected to leave by the end of the year. This is the highest number the Bureau of Labor Statistics has recorded in two decades of data tracking. 

Anthony Klotz, an associate professor of management at Texas A&M University, coined the term “the great resignation” to describe this unprecedented period. Here are 4 key factors driving this great resignation — and what you can do to keep your employee retention high.

1. Widespread and long-lasting employee burnout

For many, the pandemic has led to increased workloads and longer working hours, all while people are dealing with the external stressors of a health crisis. Employees who work from home have found their professional and personal lives blurred. Plus, without a physical office space to leave, it can be difficult to “log off” when there still may be work to be done. For those in healthcare or service industries, smaller staffs and increased demands have led to grueling hours and more work.

In a June survey from Monster.com, 95 percent of the U.S. workers polled said they were considering leaving their jobs, and one-third of them listed burnout as the top reason. To combat this, employers can commit to regular mental health check ins, offer increased time off or consider more flexibility when it comes to work hours.

2. A decreased feeling of employee belonging

With longer and harder hours has also come lower employee engagement and a decreased sense of belonging. Per a recent report from BetterUp, belonging is a leading indicator of both intent to stay and performance. The isolation of the pandemic, though, has made it more challenging for employers to feel connected to their colleagues and to their work. 

The report recommends that employers focus on providing strong leadership, listen to employees’ needs and desires and think about which groups, such as parents or underrepresented minorities, may require more support in order to feel a strong sense of belonging.

3. Major work environment changes

The pandemic has brought about a whole new way of working for many of those who previously worked in an office. Some have grown to prefer work-from-home setups and have left their jobs out of an aversion to returning to an office, Klotz, the researcher credited with the term “the great resignation,” previously said. 

To avoid losing employees over work environments, employers should aim to be flexible with their workers whenever possible. One solution could be to create a hybrid set up, which allows for a combination of remote and in-person work.

4. Increased financial stress among workers

COVID-19 has also undoubtedly led to higher levels of financial stress — in the American Psychological Association’s 2020 Stress in America report, 63 percent of adults said their finances were a significant source of stress. This is a major jump from the previous year, when just 46 percent said the same. With stress being a leading cause of resignation, it’s essential to tackle financial wellness within the workplace. 

Adding financial wellness to employee benefits’ packages is one way to both lower overall stress and increase retention. Last year, Prudential found that 6 in 10 workers said they were more committed to their employer and more productive when their employers demonstrated a commitment to their financial wellness.

When it comes to actually implementing such benefits for your employees, programs like Best Money Moves can help. Best Money Moves uses artificial intelligence to power a mobile-first platform that measures employee financial stress, then dials it down with a unique content-mapping system that helps solve your employees’ pain points. Our triggers and alerts system, as well as budgeting tools, personal finance resources and more, guide employees to make smarter financial decisions and reduce their overall stress, which in turn, can help improve your company’s retention rates.

If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.

5 Financial Steps to Support Employees in 2022

5 Financial Steps to Support Employees in 2022

by | Oct 7, 2021 | Blog

5 financial steps to support employees in 2022. Consider these 5 suggestions for bringing financial wellness to your workforce in 2022, as well as why these steps are good for employers as well as employees.

According to a 2021 Capital One CreditWise survey, 73 percent of Americans rank their finances as the most significant source of stress in their life. And stress has real life implications: Eighty percent of US employees spend 12-20 hours per month dealing with financial concerns at work according to the IFEBP (International Foundation of Employee Benefit Plans). Financial wellness can help alleviate that stress and lead to more focused employees.

Here are five steps to increasing employee financial wellness for 2022.

1. Help your employees plan for the future

According to a study by EBRI and Greenwald Research, about two in three employees expressed concern about their financial future. There are programs employers can offer such as a rainy day savings account program that can help ease these issues. Utilizing these programs is also a good way to signal to employees that their financial wellness is a priority. Among those polled, 72 percent of workers who reported facing increased financial setbacks during the pandemic said they would be more attracted to another company that cared more about financial well-being than their current employer.

2. Instruct your employees on how to use your current financial benefits

A recent survey by Voya financial found that 35% of employees do not fully understand the benefit programs in which they were enrolled. This does not mean that employees are discouraged from enrolling in these programs or learning more about their finances. The same study found that around two-thirds of employees want their employer to help them better understand their employee benefits. Talking about financial well-being and asking for help with their financial wellness can be daunting for many employees. Employers should take a proactive approach to alert their employees to available benefits.

3. Alleviate your employee’s stress with debt reduction programs

The average American household has $15,706 in credit card debt and the average federal student loan debt is $36,510 per borrower. Debt can be a burden that contributes to long-term stress as well as mental health strain. Employer-sponsored student loan relief programs have grown increasingly popular among workforces. Many potential employees, especially those just entering the workforce, feel burdened by their student debt. Offering these programs is a great way for an employer to stand out to potential new hires.

4. Be sure your retirement strategy is still going strong

According to a study conducted by the Department of Labor, only 40% of Americans have calculated the amount they need to save for retirement. The best time for employees to start saving is right now. Employers can emphasize this by using 401(k) or other retirement plans. The most common retirement plan is the 401(k) match where the employer grants a certain amount to the plan based on how much the employee contributes. Employers that utilize these plans are desirable to potential new hires. According to a survey by Willis Towers Watson, 51% percent of employees joined their current employer primarily because they offered a retirement plan.

5. Utilize financial wellness benefit programs

A good way to aid your employees in minimizing the stress associated with finance is by instituting financial wellness programs or benefits. There are a wide variety of these programs from financial counseling sessions to employer matching programs. Employees will appreciate the access to financial education as over 50% of financially-stressed employees are afraid to ask for help with their finances according to Pwc. The cost of these programs is manageable for most employers and is often well worth the additional productivity seen from workers who use the benefits. 

There are many benefits to financial education including being prepared to tackle debt, making smarter decisions with how to spend money and a less stressful 2022. 

Whether your employees need help saving money, paying their bills, raising their credit scores or getting ready for retirement, Best Money Moves is there to support them every step of the way with best-in-class products, services and benefits tailored to suit your workforce needs. Best Money Moves is a human-centered and individualized approach to financial wellbeing. The comprehensive and user-friendly platform provides a plethora of financial resources and educational tools. Give your employees the very best financial wellness experience. Reach out for a demo today!

If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.

4 Reasons to Reskill Your Workforce

4 Reasons to Reskill Your Workforce

by | Sep 21, 2021 | Blog

4 reasons to reskill your workforce. Reskilling has long been associated with training employees who are about to leave the company, but data continues to show strong benefits for offering reskill opportunities for all workers.

Reskilling helps employees develop new skills beyond the scope of their current jobs. Often, reskilling programs are reserved for employees who will be laid off. Data, however, suggests that reskilling all employees can help improve retention, lower hiring costs, boost team morale and more. 

In February 2020, McKinsey conducted a survey in which 87 percent of executives felt they were experiencing skill gaps in the workforce or expected them within a few years. The COVID-19 pandemic has also brought reskilling to the forefront, as work from home technology and other new challenges in the workforce have widened skill gaps even further. 

So why should you prioritize reskilling for all employees — not just those preparing to leave the company? Here are four key reasons to consider: 

1. Retention.

One of the most compelling reasons to reskill is that it can improve your employee retention rates, thus reducing the time, money and effort you spend on hiring and training new employees. Investing in employees’ skills shows them you care about their development and increases their desire to remain on at the company — an IBM study found that new employees are 42 percent more likely to stay if they are receiving the training they need to do their jobs properly.

2. Training and hiring costs.

Going hand-in-hand with retention rates, reskilling your workforce can lower your training and hiring costs. If you’re reskilling your employees, when a new position pops up you can hire someone internally by teaching them the responsibilities of the role, rather than having to look outside the company. Promoting internal mobility is also attractive to employees who want to see that their employer is dedicated to helping them grow and improve.

3. New talent.

Committing to reskilling can also help attract new, top talent in an increasingly competitive job landscape. According to a Gallup poll, 87 percent of millennials — who make up the majority of the workforce — said that professional development is very important to them in a job. Maintaining those aforementioned low retention rates can also work in your favor for attracting talent, as it shows potential new hires that employees want to stay on at the company and suggests a positive work culture.

4. Employee morale.

Boosting company morale is an essential reason to consider reskilling. In addition to showing employees that you care and are invested in them, reskilling can improve employee confidence and, as a result, make them more committed to their jobs and to producing high-quality work. Per one 2020 study,  80 percent of employees said their confidence improved from reskilling training. Reskilling also gives employees a greater sense of job security, because it offers them the opportunity to learn skills outside of their role, and protects them in case their current position is eliminated.

Once you’ve decided to reskill your employees and identified any glaring skills gaps within your company, the process can take on a variety of forms, from focusing on digital skills to creating a job shadowing program to facilitate peer learning. Provide your team members with encouragement to grow and offer them the tools to facilitate that development.

If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.

For Retention, Reducing Financial Stress is Key

For Retention, Reducing Financial Stress is Key

by | Sep 15, 2021 | Blog

For retention, reducing financial stress is key. Financial stress is a major but often overlooked factor to employee turnover. So, financial wellness initiatives can be invaluable retention tools.

Turnover is a major problem for employers — and it’s getting worse. In June alone, 3.9 million U.S. workers quit their jobs. More alarming, 65 percent of employees surveyed by PwC in August of 2021 stated they were looking for a new job. 

In addition to the challenges of losing top talent, turnover is highly disruptive due to the time and money it takes to train new hires. The Society for Human Resource Management (SHRM) estimates that the average replacement cost of a salaried employee is six to nine months’ salary. That means that an employee earning $60,000 per year costs around $30,000 to $45,000 to replace. 

So, how can you increase employee retention? One answer is financial wellness.

What is employee financial wellness?

Stress is a top reason employees leave their jobs, according to recent research by iHire, and financial stress is an under-recognized part of that picture. So, putting your efforts towards reducing financial stress can help keep people on at your company longer. Per the American Psychological Association’s 2020 Stress in America report, 63 percent of adults say their finances are a significant source of stress, a major jump from the previous year, when just 46 percent said the same. 

The COVID-19 pandemic has increased financial stress — 62 percent of those in households that experienced job or wage loss since the outbreak began told Pew Research Center that the economic impact of the pandemic will make it harder for them to achieve their financial goals. COVID’s ongoing impact on the economy and the world at large make it all the more important to start thinking about how your company can commit to employees’ financial wellness now. 

Incorporating financial wellness into employee benefits’ packages is not only desired — 87% of employees want help when it comes to personal finance, according to PwC — but also a proven solution. Financial wellness programs improve overall health and well-being, leading to lower stress and lower healthcare costs. Plus, employees say it keeps them sharper at work: 6 in 10 say they are more committed to their employer and more productive when employers demonstrate a commitment to their financial wellness, Prudential found last year.

Finding financial wellness solutions that work

According to research conducted by FinFit between 2018 and 2020, when organizations offered financial wellness assistance, there was a nearly 20 percent increase in employee retention across salaried and hourly employees, $1,855 annual turnover cost-savings per employee and nearly $2 million saved annually for every 1,000 employees. 

When it comes to actually implementing financial wellness benefits for your employees, programs like Best Money Moves can help. Best Money Moves uses artificial intelligence to power a mobile-first platform that measures employee financial stress, then dials it down with a unique content-mapping system that helps solve your employees’ pain points.

Our triggers and alerts system, as well as budgeting tools, personal finance resources and more, guide employees to make smarter financial decisions and reduce their overall stress, which in turn, can help improve your company’s retention rates.

If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.

4 Reasons Employees Are Quitting Post-COVID-19

4 Reasons Employees Are Quitting Post-COVID-19

by | Aug 31, 2021 | Blog

4 reasons employees are quitting post-COVID-19. The U.S. has seen unprecedented numbers of employees leaving their jobs after the pandemic. Here are 4 leading causes spurring employee turnover.

The COVID-19 pandemic has been a period of incredible change, and it’s not over yet – an unprecedented number of employees are quitting their jobs.

At Quartz, Tim Fernholz writes that “the U.S. economy is currently experiencing the highest rate of workers quitting their jobs that we’ve seen in the last two decades.” A record 4 million people quit their jobs in April 2021 alone. Why? 

Let’s unpack the leading causes, and list some steps you can take to stop your best talent from leaving.

1. Employees are feeling the need for higher compensation.

In 2018 and 2019, workers were already quitting jobs at record rates.  Job satisfaction was also already low, especially among low-wage earners. These trends are motivated largely by compensation and benefits. 

But the problem of compensation can be traced further back, before even the 2008 financial crisis. Real wages in the United States have stagnated since the late 1970s. In the meantime, while consumer good prices – things like televisions or new sedans – trend low, costs associated with food, healthcare, childcare, and housing have skyrocketed. 

This problem has only been exacerbated by COVID-19. In the pandemic’s chaos, many people have assumed greater financial burdens, struggling with expenses related to child care, healthcare, debts, and ill family members. Many employees now look in toward the future, anxious about contingency costs, or inevitables like long-term care and retirement. 

This point may be the simplest and most effective: pay your employees competitive earnings and benefits to keep them feeling stable and supported, even in times of uncertainty.

2. Employees have grown accustomed to the flexibility available throughout the pandemic.

A Harvard Business School survey shows over 80% of workers who worked from home during the shutdown “either don’t want to go back or prefer a hybrid schedule.” While many startups and offices already sprinkled “work from home” days as an enticement or luxury, remote work is now the preference for many employees.

Material conditions motivate this demand for flexible scheduling. Many workers who are quitting are women, seeking jobs with more compensation and scheduling-autonomy for childcare needs. More time at home has re-taught many to value work-life balance.

If your employees have been fulfilling their work demands even while remote, consider extending flexibility beyond the pandemic. Talk to your staff and aim to negotiate reasonable hybrid-work schedules based on employee needs. 

3. Post-COVID-19, employees are upskilling and ready for change.

Many Americans who’ve quit (or remained on unemployment) are “upskilling,” or pursuing educational programs, such as online certificates or part/full-time college enrollment, with eyes toward new sectors of the economy. 

4. Americans are dealing with long-term burnout from the COVID-19 pandemic.

Though most people have gradually “gotten used to” a COVID world, people remain burnt-out, fatigued. As vaccination rates increase, workers will find they want to change careers, work less, or perhaps just take the time to process the trauma of recent history.

Employees’ access to mental health benefits should be kept strong. Again, allowing for remote flexibility and occasional paid time-off makes a staff feel supported.

Ultimately, it’ll take years of data to understand COVID-19’s impact on the labor market and the lives of those in it. Some jobs are essentially gone for good. For now, employers and HR managers would do well to accommodate their employee’s shifting needs in the wake of a long public health crisis.

If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.