financial wellness Archives

COVID-19 2020: Managing Employees During the Coronavirus Pandemic

by LizStevens | Apr 8, 2020 | Blog

COVID-19 2020: Managing employees during the Coronavirus pandemic. Dealing with employees who may be sick and making temporary policy modifications.

More than 70 percent of companies didn’t have a crisis management plan in place when the Coronavirus outbreak hit, according to a survey by Blank Rome. Even those who did anticipated natural disasters like floods and fires, but not a global pandemic like COVID-19.

Without an emergency response plan in place, how are employers dealing with things like emergency contact systems, data privacy, defining essential functions, managing employees who become ill and avoiding panicked reactions to negative news?

COVID-19 2020: Managing Employees During the Coronavirus Pandemic

Here are some of the temporary modifications employers told Blank Rome they’ve made in response to the Coronavirus pandemic:

We are following CDC guidelines; if an employee is sick we are sending them home.
We started specific weekly communications on March 3rd regarding precautionary personal and workplace hygiene, staying home or going home if ill, social distancing. We applied more specific polices on March 13th and formally implemented work from home as well as rotational work assignments.
We extended the absence period for returning to work from 3 to 5 days and on a case by case basis in some instances.
We have released anyone with symptoms and required doctors notes to return.
We’ve requested all employees to get tested and made arrangements for the testing to get done.
We are operating on the honor system for absences or modifications and accommodations during this time.
We are asking screening questions and are considering temperature checks.

Responding to Employee Testing Positive for COVID-19

Nearly 7 percent of the companies Blank Rome surveyed had an employee test positive for COVID-19 and in response to it:

23 percent of employers converted to remote work for all employees not required to be on-site.
17 percent continued operations with modifications.
3 percent closed the entire worksite where the employee who tested positive reported.

Managing Paid Time Off

Over 40 percent of employers have paid employees who show symptoms of COVID-19 but haven’t been diagnosed or allowed them to use paid time off. Nearly half of businesses that have had to temporarily shut down business operations are still paying workers and more than 20 percent are requiring use of paid time off.

Managing Employee Complaints

Less than 15 percent of employers have received COVID-19-related complaints from employees, but more than 90 percent have required responses that don’t fall within the traditional framework of complaints, including disability discrimination, retaliation and OSHA. Here are some of the COVID-19-related complaints employers have received:

Employees requesting shutdown.
Employees complaining about lack of sanitizer and masks.
Employees frustrated about working remotely.
Employees complaining the company failed to act quickly and put inexperienced people in charge of decision making.
Employees complaining that there isn’t a policy in place.
Employees upset about being required to come into work when they think they should be allowed to stay home during the Coronavirus outbreak.
Employees concerned about how matters will be handled.

How employers respond to the Coronavirus pandemic will have a significant impact on business for years to come. It’s crucial to empathize with employee concerns and communicate what the company is doing to protect both employees and business operations.

Helping Employees During Coronavirus/COVID-19 Pandemic

by LizStevens | Mar 31, 2020 | Blog

Helping employees during Coronavirus/COVID-19 pandemic. How you support workers during the outbreak could have a lasting impact on recruitment and retention efforts.

What will you say when asked how you helped employees during the COVID-19 outbreak?

We are in the midst of a crisis. The Coronavirus/COVID-19 outbreak is dramatically reshaping the working world. Healthcare workers, delivery drivers and grocery store shelf stockers are being overworked while waiters, bartenders, musicians and those in the hospitality industry are dealing with shutdowns, layoffs, and unemployment. All of them are looking to their employers for help to get through this uncertain time.

How employers respond to the Coronavirus/COVID-19 pandemic will have a significant impact on recruiting and retention efforts for quite some time.

Helping Employees During Coronavirus/COVID-19 Outbreak

Employees at all levels are dealing with increased financial stress. Nearly 60 percent of Americans say the Coronavirus has had a negative impact on their finances, according to a survey by the National Financial Educators Council. Over 40 percent of them are more concerned about their personal finances than they are about contracting COVID-19.

There are a number of ways employers can support employees during the Coronavirus/COVID-19 pandemic. These are a few areas some organizations are zeroing in on and others where the U.S. government is providing assistance:

Financial Wellness

Employees want to know how the Coronavirus is going to impact their retirement savings, their monthly budget, their credit card debt, their paycheck and they want to know what they should do about it. Best Money Moves, a mobile-first financial wellness platform, just added new resources to answer employees’ questions about how the Coronavirus will affect their finances and for a limited time, new clients can get Best Money Moves free for the first three months.
Paid Leave

The Families First Coronavirus Response Act (FFCRA) mandates certain employers provide up to two weeks of paid sick leave related to COVID-19. Employers who provide paid sick leave under the FFCRA will be eligible for two new refundable payroll tax credits that the IRS will “immediately and fully reimburse” according to the IRS and the U.S. Department of Labor. The Coronavirus Aid, Relief, and Economic Security Act (CARES) provides almost $350 billion in partially forgivable loans to small businesses and nonprofits with 500 or fewer employees impacted by COVID-19 to help cover payroll and temporary closings.
Unemployment Resources

Some employers, especially small businesses, will have to layoff and furlough employees during the Coronavirus/COVID-19 outbreak. Whenever possible, employers should provide severance pay, extend health benefits and give a tentative rehiring date if the business plans to remain open. Employers should also help employees navigate the unemployment process.
Mental Health

Mental health platforms that offer teletherapy have noticed a surge in usage during the Coronavirus/COVID-19 pandemic. People are anxious, depressed, isolated and lonely as they socially distance themselves and stay home to limit the spread of the Coronavirus. Providing resources for those who are struggling with their mental health during this crisis is important. Employers should evaluate their current mental health benefits and consider telehealth solutions.
Virtual Recruiting

Employers in essential services are struggling to fill open positions and comply with social distancing restrictions. CVS Health will fill 50,000 full-time and part-time positions through virtual job fairs, interviews and job tryouts. Walmart is shortening its hiring process to hire associates “in as little as 24 hours” to meet its goal of hiring 150,000 new workers by the end of May. Employers who were in the process of evaluating and interviewing top talent who still need to fill the position and have the budget to do so shouldn’t suspend the hiring process until the Coronavirus outbreak is behind us. Instead, those employers should look to virtual solutions like video conferencing for interviews.

This is a defining moment for business leaders around the world. Years from now potential hires will ask employers what they did to support employees during the Coronavirus/COVID-19 pandemic. What will your organization have to say when that time comes?

5 Strategies to Brace for a Recession

by Ilyce Glink | Mar 19, 2020 | Blog

5 strategies to brace for a recession. You should get your finances in order now to prepare for a global recession signaled by the Coronavirus (COVID-19) pandemic.

The Coronavirus (COVID-19) pandemic has spurred a surge in financial anxiety, with many signs pointing to the beginning of a deep, lengthy global recession.

The stock market has taken a sizable blow. The federal government has warned of a potential 20 percent unemployment rate in the near future. Nearly 80 percent of people across the U.S. were already finding it hard to pay their bills at the end of the month. None of this will help reduce their financial anxiety. Or yours.

A recession is unquestionably a hard time, but you can survive the situation by anticipating hardships early and planning for the future. With that in mind, here are five key strategies to help you brace for these uncertain times:

5 Strategies to Brace for a Recession

1. Rethink Your Financial Situation

One of the toughest parts of a recession — not to mention a worldwide pandemic — is not being able to predict what comes next and when your situation will improve. That’s why it’s so crucial to be precise about where you stand financially. These are some of the central questions you’ll need to answer as you take stock of your fiscal situation.

How much money do you have on hand?
How much money can you obtain quickly, if you need it?
How much debt do you currently have (credit cards, student loans, etc.)?
How much are your basic monthly living expenses, including food, shelter, health insurance, transportation, childcare?
Do you have any major life events (weddings, a baby, retirement) coming up with significant expenses attached?

Now is the time for you to understand what you’re spending today and to anticipate your needs over the next six months. If you’re well-prepared for a recession, job loss or some other financial catastrophe, you’ll have an emergency fund that covers three to six months of living expenses (and hopefully a healthy nest egg for retirement).

If you don’t have at least 3 to 6 months of basic expenses in cash, then set that as your financial goal. Start by developing a basic understanding of how you are spending your money and building a budget.

To start building a budget, figure out your total income, including your income, your spouse/partner’s regular income and any side hustles you do to bring cash into the household. You should also include your investment income and any other sources of income, such as child support. Next, list your monthly expenses, including your rent or mortgage payments, utilities, groceries, pharmaceutical or medical needs, child care costs, home or auto maintenance, debt payments and insurance premiums, and anything else you regularly pay for, including expenses you might only pay annually. Add up all of these expenses to understand whether you’re spending more, less or the same as your take-home pay each month. Finally, prioritize your essential expenses and make sure you understand what is the absolute minimum you can spend in a given month to get by – just in case you or your spouse/partner loses their job.

Your budget may need to adapt in preparation for a recession, and that’s okay. Try to cut down on non-essential spending, like entertainment, cable, and clothing. While it’s unrealistic to think you can cut out all discretionary spending, it’s important to separate wants and needs. Look for areas where you may have overspent recently, and try to figure out why that happened. You might not have extra money to put toward your retirement or a down payment right now, which is alright for the short-term.

Once you get in the habit of consistently reviewing your finances and looking for problem areas, you’re off to a great start.

2. Pay as Many Bills as You’re Able to

You might be worried about paying off outstanding debts in the coming months, like credit card bills, utilities or student loan debt. If you experience a loss of income, you might have to forego paying one or more of these bills, so it’s important to understand what are the most important bills you need to pay.

Because if you lose income, you may not be able to pay every bill on time, and in full every month. And, that will have a direct impact on your credit score. While normally we suggest doing whatever you can to keep your credit score intact, that may not always be possible. So, you should prioritize how you pay your bills, so the cash you have covers as many bills as possible.

Make sure you pay your rent or mortgage on time and in full. You don’t want to face foreclosure or getting evicted.
Make your car payment, especially if you need a car to get to work.
If you’re facing an income reduction, contact your student debt lender and ask for a hardship application, which should buy you a few months where you don’t have to make a payment.
Make at least your minimum payment on your credit card, if possible. If not, contact your credit card company and try to work out a payment plan. (Just know if you do this, the creditor will likely freeze your credit card, which will prohibit you from charging anything else on the account.)
While your medical debts are important, your health insurance will continue even if your medical bills grow. But if you buy your own health insurance, make sure you pay your premium on time so your policy isn’t canceled.

Remember, if you’re falling behind, reach out to your creditors right away and ask for hardship concessions. This might include making interest-only payments on your debt or putting payments into forbearance.

You can also check out your local bank or credit union for a personal loan. There are online lenders as well, and your own employer may offer a short-term loan program in times of trouble.

If you’re making your payments on time, you can also ask your credit card company or any other lender about lowering your interest rates. A significant number of major utility providers offer programs that might allow you to pay your energy bills at a later date or offer hardship assistance. You’ll never know what agreement you and your creditor can reach with if you don’t ask.

3. Take Advantage of Local and Government Assistance

Fortunately, many local, state and federal governments will take action during a recession to provide relief to those in need. For instance, during the Coronavirus COVID-19 crisis, the federal government is considering all sorts of assistance, and announced that taxpayers will automatically get a delay in paying their tax bill (although you still need to file on time) and the Department of Housing and Urban Development announced a 60-day moratorium on foreclosures and evictions.

On a smaller scale, community organizations like food banks and places of worship will often try to help anyone struggling. Check with your local government as well as community activist groups to see if there are resources in your area for your specific needs.

4. Save as Much as Possible Into Your Emergency Fund

Even if job cuts or layoffs are looming, keep putting away as much cash into your emergency fund as possible. You’ll need every bit of it when the income stops flowing. Give up all the extras, including takeout and delivery. Try to live as lean as you can, so your cash goes as far as you need it to.

While taking money out of your emergency fund is never a decision you should make lightly, losing a job or being forced to live on a lower salary certainly qualifies as a good reason to use the cash you’ve stowed away. However, it’s important that you start to rebuild your emergency fund as soon as your financial situation is more stable. Otherwise, when the next emergency hits, you might have to make tough decisions, like taking money out of your retirement account or borrowing a line of credit from your home equity.

5. Keep Tabs on Your Financial Situation – and Make the Most of the Guidance We Have at Best Money Moves

The next few years may be uncertain, but the best thing you can do is take proactive steps now to prepare yourself. To help you stay on top of your finances in these stressful times, Best Money Moves is your partner in financial wellness. You can trust us for reliable information on need-to-know topics. Financial education is important now more than ever so you can feel good about where you are with your money, regardless of any challenges ahead.

Coronavirus and Financial Stress March 2020

by Ilyce Glink | Mar 16, 2020 | Blog

Coronavirus and financial stress, March 2020. Free Best Money Moves to help your employees manage their finances and reduce stress.

Coronavirus = Employee Financial Stress: Get Best Money Moves for Free

Coronavirus is everywhere – and so is the fear that your employees will get it, infect themselves and their families, as well as their colleagues.

If you’re like most of the people I know in HR, you’re up to your ears now trying to get your employees set up to work from home. Figuring out this new way of working for an indeterminate period of time, is complicated: there are new procedures to write, new rules to lay out and communicate, technology issues to solve, and new worries to deal with.

Underlying all of this, is employee financial stress. The C-suite is worried that business will disappear, revenue will evaporate, and many industries will experience a massive, almost immediate shift. Your employees are worried about exactly the same things. Your job is to help them feel as secure as possible when life is anything but.

What I’m hearing today is that employee financial stress has gone through the roof. We’re seeing unprecedented use of our technology, with rising Stressometer(R) scores.

And even if their job is safe for the moment, their spouse or partner’s job, as well as any sidekick income they were bringing in, may not be. We are already hearing about Coronavirus layoffs, and even if your company is doing well, everyone’s retirement is affected when the stock market declines by 30 percent in less than three months.

How can you help? Constant communication is a must these days, as well as projecting calm and thoughtful consideration. But you already know that.

Here’s something else: top quality financial information is also important, along with reminding employees about all of the benefits that your company offers them that might help them through these tough times.

We want to help, too. We’re offering three months of access to our Best Money Moves platform for free. If you’d like to extend access to the platform, or offer access to our money coaches or free credit scores after the three months has elapsed, we’ll work with you to push any payments owed until later in 2020 or even January 2021.*

The important thing is to help your employees feel reduced financial stress so they can focus on their health, and doing the work you’re paying them to do.

Email sales@bestmoneymoves.com today to get the ball rolling. We can get your employees set up on Best Money Moves in a few days.

Best Money Moves. Because you need to make your best money moves every day.

*This offer is available only to companies that are not already customers of Best Money Moves. This offer may be rescinded at any time. Contact sales@bestmoneymoves.com for details.

Coronavirus and Financial Stress: How Will Employees React?

by LizStevens | Mar 5, 2020 | Blog

Coronavirus and financial stress: how will employees react? They’re worried about losing pay, their jobs and being unable to afford the costs of healthcare if they’re infected with COVID-19.

Update: The number of coronavirus cases and deaths in the U.S. were updated as of April 13th, 2020.

There are more than 500,000 known cases of the new coronavirus, COVID-19, in the U.S. and over 20,000 people have died. Stores everywhere are selling out of hand sanitizer, face masks, groceries and household supplies as Americans panic about an outbreak reaching their neighborhood.

Employees, especially those in industries like hospitality, retail, healthcare and food service are fearful of what will happen if they’re infected with the coronavirus. Without the ability to work remotely, they worry about losing pay or their jobs while they’re quarantined.

“We’re seeing a significant number of employees register higher levels of financial stress in the past two weeks, which isn’t much of a surprise given the financial ramifications of catching coronavirus,” said Ilyce Glink, CEO of Best Money Moves.

More than 75 percent of employees live paycheck-to-paycheck. Nearly 40 percent couldn’t come up with $3,000 if an unexpected expense arose in the next month, according to a report by Willis Tower Watson.

One thing is clear: The coronavirus is heightening the financial stress employees experience every day, further damaging employee productivity and engagement.

Financial Stress and the Coronavirus: How Will Employees React?

“Financial health is not just about income. The impact of financial problems on employees’ health and stress, even for those who aren’t living paycheck to paycheck, is unmistakable,” said Steve Nyce, senior economist, Willis Towers Watson.

Money is a significant source of stress for 90 percent of employees, according to research by Thriving Wallet. More than 60 percent of employees feel as though their financial difficulties are piling up so much they can’t overcome them and 25 percent make purchases they later regret when experiencing financial stress.

Even a high salary doesn’t always salve financial woes — 18 percent of employees making more than $100,000 annually live paycheck to paycheck. Some employees are unable to pay for basic needs like healthcare, while others are having trouble saving for retirement.

And for employees who get sick, high-deductible healthcare plans have shifted much of the cost onto the shoulders of already struggling employees, who must find a way to come up with the initial costs of care for themselves and their families. (As of this writing, it’s unclear whether the US will shoulder the cost of testing for coronavirus, if insurance will cover it, or if employees themselves will have to pay that cost. Regardless, if an individual is forced to quarantine, the financial cost will be painful.)

Willis Tower Watson defines those who are “struggling” financially as those who live paycheck-to-paycheck and have difficulty controlling spending. Over 60 percent of those who are “struggling” aren’t fully engaged at work. Close to 40 percent said money concerns keep them from doing their best at work. More than 40 percent of “struggling” employees reported suffering from stress, anxiety or depression over the past two years, compared with just 16 percent of employees without financial worries.

Roughly 40 percent of Americans don’t have emergency savings and skip medical care they can’t afford. If those employees get sick, they might not get tested and come to work sick, infecting colleagues and limiting productivity.

How Financial Wellness Programs Pay Off

Even in a good economy, the majority of employees say financial stress is their top stressor. In a bad economy, that number grows exponentially.

A good financial wellness program can ease financial stress and help employees boost their financial wellbeing. Willis Tower Watson found nearly 70 percent of employees who were given access to four or more financial wellness tools said their finances are headed in the right direction. Over 60 percent of workers said those resources met their needs and encouraged them to improve their financial situation.

“We believe, with the right actions and insights, employers can help lower the financial risks that workers face. Access to the appropriate benefits and decision tools is a great start. These employer resources should include supportive social connections, such as coworkers and family, all of which can help employees keep and enjoy more of their money and, ultimately, improve wellbeing,” concluded Shane Bartling, senior director, Retirement, Willis Towers Watson.

Best Money Moves is a mobile-first financial wellness program with a wide range of tools to help employees measure financial stress and then dial it down. Our Stressometer measures stress in 14 categories and uses artificial intelligence to push relevant, contextualized and personalized information, tools, and solutions to users to solve the biggest pain points quickly.

We have a library of over 700 calculators, articles and videos, a budgeting tool that does the math, and tells workers what their neighbors are spending in the same category.

Best Money Moves is also gamified, it features a point-based rewards system where users earn points every time they log in, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

COVID-19 2020: Managing Employees During the Coronavirus Pandemic

COVID-19 2020: Managing Employees During the Coronavirus Pandemic

Responding to Employee Testing Positive for COVID-19

Managing Paid Time Off

Managing Employee Complaints

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