5 Ways to Support Employees Following a Natural Disaster

5 Ways to Support Employees Following a Natural Disaster

5 ways to support employees following a natural disaster. Now more than ever, it’s imperative that companies support their employees following a large-scale natural disaster. Learn how to provide support. 

In 2022, natural disasters displaced nearly 3.4 million people, according to data from the U.S. Census Bureau. Climate-related catastrophes have affected many communities across the country, and the COVID-19 pandemic demonstrated that even non-weather-related disasters can leave an enormous impact.

Now more than ever, it’s imperative that companies support their employees following a large-scale natural disaster. Without a proper strategy in place, your staff may be left without critical assistance in the wake of a natural disaster. 

Here are five ways you can support employees following a natural disaster.

surprising stat about how employees are unprepared for expenses related to natural disaster

1. Have a plan in place before a natural disaster occurs.

Having a dedicated disaster plan in case of an emergency can make the transition for your company and employees much smoother. Ensure that your staff understands emergency protocol and that the information is easily accessible. A solid plan won’t prevent a national disaster, but it can help support your employees through tough periods and possibly save lives. Whether it’s an evacuation strategy or up-to-date medical supply kits stored around the workplace, being well-prepared is key.

2. Reach out to affected employees.

Create a contact list for all of your employees and reach out every step of the way. Use social media or your company’s personal lines of communication to distribute important information to your workforce. It’s critical that your staff understands the next steps and any support your company may offer. These channels can also be a way to let employees know what your organization’s schedule will look like during and after the event.

You can also use this strategy to share general information, such as road closures or weather updates. Information about disaster relief programs may not be common in your area, so ensure that any relevant material is distributed regularly. In addition to what your company may offer, the Federal Emergency Management Agency (FEMA) may offer programs to support disaster victims, including mass care assistance, crisis counseling and emergency alerts.

3. Set up a home base.

If at all necessary and practical, for employees who are displaced because of a disaster, consider setting up a shelter. This may include working with a local school or church that will offer your staff a safe space. This can serve as a daycare, pet care center or even charging station where people can congregate and consider the next steps. Food and water may also be scarce in the wake of a natural disaster, making a home base even more necessary. 

4. Provide mental health benefits.

Everyone reacts to a disaster differently. The loss of personal items, homes or even close relationships takes its toll. It’s common for employees recovering from a disaster to experience heightened anxiety and increased levels of burnout.

Communicate with members of your team to see how they are affected by the event. Encourage staff to make use of any mental health services your company may offer and understand that the effects of the disaster may linger, even after the event has ended. According to a survey by the Harris Poll, almost 70% of workers say mental health services offered by employers are beneficial.

5. Utilize financial wellness programs.

Natural disasters can cause billions of dollars in damages and families pay the price. According to an analysis by the JP Morgan Chase Institute, during Hurricanes Harvey and Irma, home expenses rose 15 to 37 percent and inflows to checking accounts dropped 20 percent.

Arming your workforce with the financial education they need is key to supporting them through any disaster. Without it, they may be left vulnerable to unexpected expenses, increased consumer debt and other financial pitfalls. Proper financial planning can prevent unnecessary challenges and help them through the difficult process.

For example, emergency funds are one of the biggest problem areas for Americans. In 2023, only about 30% of people have some emergency savings, but not enough to cover three months of expenses, according to Bankrate. Financial wellness programs offer assistance with emergency funds no matter the financial situation, by providing saving strategies and educational information.  

Do your employees need financial guidance while navigating natural disaster relief? Consider 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 an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help bolster employee financial wellbeing. 

Whether it be paying off debt or securing a mortgage, Best Money Moves can guide employees through the most complex financial times and topics. We have robust benefits options for employers, regardless of their benefits budget.

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 Support Limits Retirement Readiness for Parents

Financial Support Limits Retirement Readiness for Parents

Financial support for adult children limits retirement readiness for parents. The latest study from Merrill Lynch reveals that parents are sacrificing their own financial security in retirement to support children whose financial independence has been delayed.

Most parents provide financial support to adult children ages 18 to 34, according to recent research from Merrill Lynch. Incredibly, each year parents spend twice as much supporting their adult children than they do contributing to their own retirement ($500 billion spent on adult children, $250 billion in contributions to retirement accounts).

“In this new era of delayed financial independence of young people, financial planning is becoming an ongoing family project with longer and different economic interdependencies than we’ve seen before,” says Ken Dychtwald, Ph.D., CEO and founder of Age Wave.

There are 173 million parents in the U.S. and 76 million have children under the age of 18. The average cost of raising a child today to age 18 is estimated to be more than $230,000. Most new parents are surprised by how much money they spend paying for childcare and other expenses like diapers and dental work. More than 60 percent of parents encounter financial difficulties associated with parenting.

Financial Support Limits Retirement Readiness for Parents

Financial support doesn’t end when a child turns 18. A third of early adults ages 18 to 34 still live with their parents. More than 70 percent of parents say they have put their children’s interests ahead of their own need to save for retirement. Over 80 percent are willing to make a major financial sacrifice for adult children.

“While it’s tempting to help your kids get a good start, early adulthood expenses can be big-ticket items, like cars, rent and grad school tuition. If you can afford to help out, that’s great, but be clear on your intent, set clear boundaries and don’t imperil your own finances,” says Stacy Allred, managing director and head of the Merrill Lynch Wealth Management Center for Family Wealth. “Remember that one of the greatest gifts you can give your kids is financial independence and security.”

When it comes to educating children about personal finances parents are better at teaching them how to pay off debt than they are at teaching them to invest early and benefit from compounding interest. More than 70 percent of parents wish they had help teaching their children about investing. A whopping 90 percent of parents would like personal finances to be taught to children in school.

It’s difficult to educate children on personal finances when most parents experience significant financial stress themselves. Employer-sponsored financial wellness programs can make a real difference by helping parents better manage their own money so they can teach their children to do the same.

More On Retirement Readiness and Financial Stress

Baby Boomer Retirement Statistics and Financial Stress

Retirement Concerns Aren’t Boosting Contributions

How to Help Employees Save More for Retirement

Retirement Concerns: Is Financial Literacy the Solution?

Financial Support Limits Retirement Readiness for Parents

Retirement Research Will Blow Your Mind

Financial Wellness Is About More Than Just Retirement Planning Advice

It’s Easy to Help Your Employees with Retirement Planning