financial wellness Archives

Research Says Employees Want Financial Wellness Programs

by ryanwangman | Aug 1, 2018 | Blog

A recent study from Bank of America shows employees and employers agree that financial wellness programs have positively impacted them and their companies.

The research is in, and employees want financial wellness programs. A recent Bank of America study found that 91 percent of employees who participate in financial wellness programs say those resources have helped them. Similarly, 95 percent of employers who offer those programs agree that these support systems have been effective in reaching their company’s goals.

Financial wellness programs provide tangible benefits to the businesses that offer them, including greater employee satisfaction, improved productivity, lower turnover rates and potentially decreased company healthcare costs.

Lisa Margeson, head of retirement client experience and communications at Bank of America Merrill Lynch, said companies are increasingly providing these programs to their employees because they realize it’s the right thing to do. Financial wellness, she said, is becoming more comprehensive.

“Financial wellness is more than just planning for retirement,” Margeson said. “It is really becoming more of a holistic conversation with employers and employees about all of the financial priorities that individuals can benefit from understanding, being educated on and planning for.”

But here’s the problem — less than half of employees are offered financial wellness plans, and when they are, only 31% of those employees participate. Employees don’t take advantage of these resources for a variety of reasons. Some don’t understand how to use or find their programs, desire more personalized help than the platforms offer or are simply too busy to utilize them.

The best way to increase participation, according to the study, is to offer cash incentives or discounts to participants.

Participation in these programs is key for many members of the workforce, as nearly 40 percent of employees report feeling financially unwell. These workers say they’re prevented from achieving fiscal wellness because they’re afraid of making mistakes, or are uncomfortable thinking about finances, among other barriers.

“Employees who don’t feel they’re financially well are most concerned about short-term goals…like managing their immediate debt or budgeting skills,” Margeson said. “Employees who do feel financially well are most concerned about longer-term goals, so preparing for retirement and good savings habits.”

Employees agree that the most helpful resource in improving financial wellness is advice from a professional, which is included in some programs. But specificity is key. Employees want these programs to address their specific goals, and offer a way to evaluate their unique financial health. Seventy percent say they would be comfortable sharing financial info as a part of an employer-offered financial assessment.

The report recommends offering financial wellness programs as a distinct benefit separate from other benefits such as 401(k) plans and health plans. To drive engagement, it recommends employers provide tangible rewards or incentives for employee participation, establish baseline engagement levels and measure improvement. You can bring financial wellness to your workplace with Best Money Moves. Best Money Moves is a mobile-friendly, online financial wellness platform that offers comprehensive financial education to employees of all ages. Our nationally-certified Money Coaches provide personalized advice to your employees about a myriad of financial situations. We run contests with cash rewards to incentivize your employees to use our system, and offer budgeting tools and calculators to help them manage their financial wellbeing. Click here to learn more about Best Money Moves and whether or not it might be right for your company.

Wait Till You See the Results From SHRM’s Employee Benefits Survey

by LizStevens | May 23, 2018 | Blog

In the Best Money Moves Roundup, we run down the latest news on employee benefits, retirement and workplace legislation.

The Society for Human Resource Management’s annual survey tracks trends in employee benefits. Here are our top 3 takeaways from SHRM’s 2017 report:

Wellness benefits work. Most employers agreed that their wellness program reduced healthcare costs and improved employee health.
Standing desks take the cake. Standing desks have increased 30% over the past 5 years. It is the highest increase of the 300+ benefits included in the survey!
Flexibility is attractive. More flexible work arrangements – like casual dress and telecommuting – were ranked one of the most effective recruiting strategies.

Now is the perfect time to evaluate your current benefits. Do your wellness benefits meet the needs of your employees? Do you have a financial wellness program? No time like the present to take a look at what’s working and what your employees value most.

Employers can now bar worker class-action lawsuits. The U.S. Supreme Court ruled that employers can enforce arbitration agreements signed by workers, even if those accords bar group claims. Read more about the ruling and if it’s relevant to your company.

Could zero-based budgeting work for you? Some companies are switching to a zero-based budgeting approach to sustain a lower cost structure. See if your organization could benefit from ZBB.

ROI for supporting breastfeeding moms. Employers who invested $1 on a supportive environment for breastfeeding mothers saved $3 on average. Find out why it’s worth the investment.

401(k) contributions at a record high. Information reported from the first quarter of 2018 shows just how important 401(k) benefits are to employees. How this record could be attributed to workplace managed accounts.

Amazon’s “Pay to Quit” program. Once a year Amazon offers full-time associates up to $5,000 to leave the company. Why it’s working for them.

Social media use at work lowers retention. It isn’t killing productivity like employers think it is, but instead social media use at work exposes employees to other opportunities which can lower retention. Here are some solutions.

High workplace drug use. Findings from more than 10 million drug tests showed the highest rate of drug use in the workplace in over a decade. See the full results breakdown here.

Benefits of break time. Regular downtime helps employees be more productive and think outside of the box. Find out how it works.

Have something to add? Email info@bestmoneymoves.com.

Helping Employees Get Smarter About Money

by LizStevens | May 9, 2018 | Blog

Your employees need help!

When asked to grade their financial literacy on a recent Equifax consumer survey 33% of consumers 18-29 gave themselves a ‘C.’ Ninety percent agreed there was a need for more personal finance education.

The results of this survey indicate that your employees lack confidence in their ability to manage their own money. By providing resources employees can utilize to improve their financial know-how you accomplish more than just boosting morale – you improve productivity. And by demonstrating you’re sensitive to the issues they face which improve retention.

Resources that help employees understand financial topics like credit scores, credit cards, debt repayment, budgeting, and student loans can make a big difference to your employees and to your company.

FSA and HSA Use Increases to Meet Employee Financial Wellness Needs. Flexible spending accounts (FSA) and health savings accounts (HSA) help employees prepare and pay for healthcare expenses. Here are their benefits and differences.

Rethinking Internal Memos in Social Media Age. Before you hit send on any internal communication consider how the public might react. See the list of what not to do.

Employee Wellness Expansion. In the next 3-4 years 67% of companies plan to expand employee wellness programs to include stress management and financial wellness. See what else is in store.

Self-Funded Health Insurance. Smaller employers are reducing costs, gaining plan flexibility, and keeping employees happy by self-funding health insurance. See if it’s a viable option for you.

Lowest Unemployment Since Clinton Administration. The April jobs report indicates that unemployment might soon fall below 4%, the lowest it’s been since 2000. Here’s what the experts say.

Legislature Proposed in NYC to Give Employees Right to Disconnect. Most employees have access to their work from their devices and as a result often find themselves doing work from home. A bill proposed in NYC aims to limit communications after work hours to maintain separation between work and home life. Find out more.

Include Managers in Wellness Program Decisions. Employee engagement in company sponsored wellness programs remains low. Research suggests managers are the key to increasing employee engagement. Here’s how.

Is your employee compliance training effective? Harassment and discrimination compliance training is shifting towards an ongoing process that is evaluated and refined so that it becomes an active part of cultivating company culture. Learn more.

Have something to add? Email info@bestmoneymoves.com.

Will Increasing Financial Literacy Reduce Overall Financial Stress?

by LizStevens | May 2, 2018 | Blog

Financial Literacy Can Reduce Overall Financial Stress and Increase Financial Wellness, Survey Says

Nearly 90 percent of Americans believe financial literacy courses should be a high school graduate requirement. An annual consumer survey highlights growing concerns about financial stress. The survey, which was conducted by Equifax, follows a 2017 American Psychological Association study that found money to be one of the top stress-inducing concerns for Americans.

When consumers from the Equifax survey were asked to grade themselves on their basic level of financial literacy, only 39 percent of surveyed consumers gave themselves a “B”, while 33 percent of consumers between the ages of 18-29 gave themselves a “C.”

Because so few Americans get financial literacy classes in high school, Equifax will make financial information and education more accessible to its consumers. Dann Adams, president of Global Consumer Solutions at Equifax, said the company will provide “the fundamentals and basic credit essentials to help consumers establish the right habits early on.”

“We want to help consumers get to an ‘A’ grade, which is why we’re studying and offering new ways to help them improve their financial literacy grade,” Adams added.

Should Financial Literacy Be Required For Graduation?

Currently, each state sets its own requirements for high school graduation, although there are federal guidelines. While few states currently mandate financial literacy, some 30 percent of states are already looking for ways to incorporate financial literacy into high school curriculum.

What Are Results of Financial Literacy Education?

In schools where a full semester of financial literacy was required a FINRA Investor Education Foundation report card showed significant improvement in credit scores for young adults aged 18 to 22. A separate study conducted by Ohio State University’s Center for the Study of Student Life found that students who had completed financial literacy courses are less affected by financial stress.

What If Your School Did Not Offer Financial Literacy Education?

While more students in the future will likely receive financial literacy education, what about adults? “Consumers often think that because they didn’t do well in high school math, that they can’t manage their finances, but that’s just not true,” said Ilyce Glink, CEO of Best Money Moves, a mobile-first financial wellness app that helps people measure their level of financial stress.

“I believe that everyone can do about 95% of whatever they need to do with their money themselves. You don’t need a professional to help you figure out a budget or shop around for car insurance to get the best deal. You can easily learn to implement those cost-saving and financial management strategies yourself,” she said.

Reaching Out With Mental Health Awareness Month

by Nicole Smith | May 2, 2018 | Blog

In this week’s Best Money Moves roundup, we take a look at news stories and new research studies that may impact employee benefits and HR issues. We hope you find this news roundup helpful, and we’d love your feedback.

May is National Mental Health Awareness Month, and it’s a great time to raise awareness of the impact that mental health has on the physical, emotional and overall well-being of your employees.

About one in 5 employees in the U.S. has a mental illness, but hasn’t disclosed the information to their employer, according to Employee Benefits News. The stigma attached to mental health issues in this country means employees are afraid to talk about this particular aspect of their health. The problem is, the mental health of your employees doesn’t just affect their personal lives, it significantly impacts their workplace experience, and that of your other employees.

What can you do? Start by providing your HR team with the resources they need to help them handle mental health issues in the workplace and provide your employees with the necessary resources to teach them how to prevent – and handle – life’s stressors (especially financial stress) that are most commonly linked to mental health issues. Remind your employees what steps they can take if they need to reach out for help. A healthy workforce is a happy workforce – show your employees you care.

This week is Small Business Week. Led by the Small Business Administration, from April 30 – May 5, outstanding small business owners and entrepreneurs throughout the country will be recognized during livestreamed ceremonies (you can follow along on social media via @sba.gov and #smallbusinessweek). These national events culminate on Friday, May 4 with a Twitter chat about tips for starting and growing a small business.

Your employees may not be as financially competent as they think. In honor of April’s Financial Literacy Month, First National Bank of Omaha released the results of its 2018 Financial Literacy and Lifestyle Survey. While 93 percent of respondents considered themselves financially literate, nearly 50 percent don’t regularly contribute to a 401(k) and 75 percent don’t stick to a budget. Your employees are struggling with their financial wellness and may not even know it.

Students struggle with medical debt – and are bringing their financial stress into the workplace. The University of Washington studied its student population and found troubling statistics. Nearly 15 percent of students carried medical debt and almost 40 percent delayed necessary healthcare because of related costs. Some Universities are beginning to offer free student financial wellness workshops. How can HR be prepared for this coming influx of indebted, entry-level employees?

Which HR tech trends are gaining traction this year? HR needs to stay on top of the latest tech trends in order to attract top talent and stay competitive in the marketplace. Watch for blockchain technology, gamification and continuous performance management tools to streamline HR operations management in a major way. Which of these trending technologies will your company use?

Don’t offer a 401(k)? Help your employees explore other options. Employees with access to a work-sponsored retirement plan are 15 times more likely to save for their golden years. But for those without, the cost of starting to save later in life versus early on is significant. And when people approach retirement without enough savings, they face the financial stress and uncertainty of outliving their money – stress and uncertainty that will impact their place of work, as well.

A Millennial’s dream come true? Their reputation as “job hoppers” precedes them and, it’s forcing employers to become more creative in order to attract and retain the millennial employee. Software-maker Qualtrics offers this over-the-top company perk: in 2018, they started providing each employee with $1,500 to spend on an experience they “wouldn’t normally be able to have,” allowing some employees to swim with sharks, ski the alps and trek the Great Wall of China.

Are you in need of 5 important guidelines to increase your HR Values? Human Resources has grown from its traditional role of hiring and retaining top talent to a much more strategic one: HR is now a significant part of an organization’s overall processes including corporate culture, employee engagement, performance evaluation and operational efficiency.

Have something to add? Do you have any questions, comments or concerns?
Email us at: info@bestmoneymoves.com.