financial wellness Archives

How to Make Employee Data Your Company’s Most Powerful Tool

by Leah Rosen | Feb 26, 2018 | Blog

Employee data is one of the most powerful tools at your company’s disposal – it reveals underutilized office talent, evaluates the efficacy of your hiring and training programs and highlights trends in overall employee productivity – all of which translates into the same thing: time, manpower and money saved for your business.

But if your HR department is merely collecting data without putting it to good use, you could be missing a great opportunity. In today’s data-driven economy, it’s vital that your company understands how to capitalize on its existing (and incoming) employee data. This will allow you to make smarter, more cost effective decisions about everything from hiring to building benefits programs targeting employee pain points.

Here’s how to make your employees’ data your company’s most powerful tool:

1. Properly utilizing employee data paints a comprehensive picture of your workforce and saves money
Employee data refers to all information collected by your company about its employees. It includes but is not limited to: basic identifying information (your employees’ age, race or gender) as well as in-depth information about workplace performance. If you provide employees with benefits from third-party providers, you might also have access to additional employee information regarding retirement planning and healthcare expenses or financial wellness. Your company most likely tracks:

Employees’ work status (part time, full time, contract, freelance, etc.)
Employee attendance records
Commuting distance and method
Amount and history of compensation
Length of employment
Overall performance

If you provide employees with benefits from third-party providers, you might also have access to additional employee information regarding retirement planning and healthcare expenses or financial wellness.

2. Employee data is most beneficial when used holistically
Looking at data from one employee may not provide significant insight. But when employee data is viewed holistically, it can identify patterns of growth and loss. Similarly, you can often determine which new hires are destined for leadership positions by tracking performance, raises and overall involvement in company culture. For a company with 500 or fewer employees, a bad hire who quits prematurely or doesn’t fit with company culture can cost around $11,000, and this cost only grows as the size of your workforce increases. By simply analyzing the employee data resources you already possess, you can predict patterns of attrition while minimizing costs.

3. If you’re using employee data well, your employees will be much happier
Keeping employees happy while at work keeps productivity high and turnover low. Happiness might be difficult to measure, but your level of employee engagement isn’t. Regular data collection in the form of employee surveys, exit interviews and performance reviews help HR assess what employees need to succeed at work. Offering a tailored benefits program, more experienced and engaged management, increased collaboration and out-of-work support systems can make priceless improvements in your employees’ happiness. Understand what your employees need and provide just that to create a more enjoyable and more productive office environment.

4. A lack of confidentiality is not an option
If you collect employee data, you need to have a plan in place to protect it. Ensure that personal employee information such as medical records or sensitive identifiers (health and financial wellness, social security numbers, addresses) are well guarded. Look for third-party benefits providers who can anonymize sensitive information. HR platforms that are able to harness anonymized data in the form of employee opinions and benefits usage (how many people are using medical, retirement, or financial services), are often the best at identifying patterns in employee behavior. Keeping sensitive information anonymous allows your employees to feel confident that their personal information won’t be known to their management teams and coworkers.

5. Have a plan in place to protect employee data before you need one.
Sixty-four percent of Americans have experienced a breach in their personal data, according to a study conducted by the Pew Research Center. Of those affected, 55 percent reported missing time from work to deal with the breach and the stress of losing sensitive information. With so much potential for data leaks, security hacks and cyberattacks, your HR and IT departments need to work together to protect valuable employee information. Encryption and firewalls are crucial first-steps, but it’s actually your own employees who are your first line of defense, yet often the weakest security link. Hosting workshops with IT professionals will bring your workforce up to speed. Losing data puts both the company and individual employee at risk.

In order to attract and retain the right talent, your company needs to take an active role in collecting and utilizing employee data – for the purpose of improving the overall work experience. In many cases, the needed data is already at HR’s fingertips – it’s just a question of using it in the right way.

Best Money Moves believes that an employees personal information should be respected, private and not shared with employers, marketers, or creditors. As a result, Best Money Moves keeps no sensitive employee data in its system. All information that is kept is encrypted, and unable to be accessed by HR or any other employee.

What’s The Best Move When Your Employees Are Stressed About Healthcare Costs?

by Nicole Smith | Feb 21, 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.

Healthcare costs are rising as uncertainty around the fate of the Affordable Care Act mounts. And, soaring healthcare costs translates into a higher level of financial stress for your employees. More than half of employees worry about what will happen to their finances if they become ill and are unable to work. Research shows that significant financial stress leads to lower rates of productivity and higher rates of absenteeism. Financial stress has also been shown to cause physical illness among some employees, resulting in even worse health prognoses.

But, there is a solution. The best fix for fears around money and financial stress is knowledge. Increasing your employees’ knowledge of the benefits you already offer, while providing access to key information, tools and solutions will help your employees be less financially stressed and more productive while at work and throughout their lives.

Your Employees Are Stressed About Healthcare Costs. What Can You Do?

Your Company’s “tax inversion” may cost you big time. Tax reform is turning the tables on companies who have previously moved overseas to (get this!) save money on taxes and experts are predicting a shift and a return home for US companies based abroad.

Will new taxation bring companies back to the US?

Fact: Employees with money angst are less present and less productive. Nearly half of employees who are worried about their financial health miss more work and are less productive when in the office. How can you bring your team to a place of financial wellness

How Improving Financial Health Boosts Productivity

Is your company’s innovation at a stand-still? Studies show that lack of time is the largest barrier to organizational growth and innovation. Nearly 82% of study participants said they’re too focused on day-to-day challenges and simply have no time to be creative.

5 ways to inspire innovation

Financial stress is bad for your health. It not only causes medical costs to become more difficult to manage, financial stress actually causes poor health. Being stressed about money can put you – and your employees – at higher risk for low quality health.

How chronic money stress affects your health

Is HR responsible for creating an ethical workplace culture? Or should it fall on the executive team to set the right tone? Someone needs to take the reigns and responsibility for creating and maintaining ethics within the workplace. Here, two experts debate.

HR or executive team – who’s responsible?

How do you budget for your business? Good budgeting is a key component when starting and building a successful business. Is not knowing where to start preventing you from taking that important first step?

10 Budgeting Tips for Your Business

Which legal missteps does your business need to avoid? Being successful in business doesn’t require an MBA or a law degree. But you need to know when it’s time to ask for help to avoid making rookie legal mistakes. Read attorney Ticora Davis’s insight on the subject.

Common small business mistakes to avoid

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

Your Employees Are Stressed About Healthcare Costs. What Can You Do?

by Leah Rosen | Feb 19, 2018 | Blog

Healthcare costs are the leading cause of financial stress for 17 percent of Americans, according to a 2017 Gallup poll gauging household stress. As uncertainty around the fate of Affordable Care Act mounts, this stress is only getting worse for your employees – and more expensive for your business.

Fifty two percent of male employees and 58 percent of female employees worry about becoming ill and not being able to work anymore, according to the 2017 Workplace Benefits Report. Financial stress leads to lower productivity and higher rates of absenteeism – this stress is even causes physical illness among some employees which only compounds the problem.

What can you do when healthcare costs leave your employees financially stressed? Try these 5 strategies:

1. Understand which healthcare-related stressors are affecting your employees
Your employees may be feeling massively stressed about their healthcare, regardless of their employee-sponsored benefits programs. The costs associated with monthly coverage, the difficulties of navigating confusing plan options and the weight of outstanding medical bills continue to stress out employees. Talk with your team as well as your HR department to determine exactly how healthcare may be contributing to your employees’ stress levels. This will allow you begin taking the appropriate steps to resolve these healthcare-related stressors.

2. Reassess the healthcare resources you already have
Once you understand the root cause of your employees’ stress, begin to review the healthcare resources you already have in place to help them. It may be time to diversify your approach. Reach out for external resources in order to analyze existing data.

Request assistance and information directly from your company’s insurance provider and its agents.
Reach out to company-linked financial advisors for relevant employee data
Access your company’s existing financial wellness programs in order to evaluate your employees’ stress levels, major financial concerns and overarching long term personal and professional goals.

If your company doesn’t currently retain all three of the above, it’s time you change that. These professional services assist you with educating yourself and your employees on how to maximize their healthcare benefits.

3. Provide your employees with the tools they need to educate themselves.
Your employees want to take control of their financial stress – many of them just don’t know where to start. Do your employees know the difference between an HMO, PPO, EPO, or POS? Between a copay and coinsurance? Do they understand how the size of their deductible will affect their monthly payment? Do you?

Improving employee literacy around healthcare is paramount to reducing employee stress and improving both their healthcare usage and your company’s savings. Look for tools through your insurance provider and if you don’t have one already, finding a financial wellness platform that will break down complex laws and regulations into readable, consumer-friendly language. By empowering your employees to take an active and supported role in researching their options, you’re helping them make educated and informed decisions. This translates into nearly $409.38 in savings for your company – per procedure, per employee.

4. Help your employees stay on top of recent changes to the healthcare system.
Healthcare stress is the highest it’s been since 2007, according to the same Gallup poll. This rising stress is tied in no small part to the uncertainty surrounding the future of the Affordable Care Act and what legislation might take its place. Whether your employees are receive insurance through you or the open market, stay aware of the changes happening in the world of healthcare – and make sure your employees do the same. Encourage employees to be proactive in gathering their own healthcare information. Task HR with maintaining effective outreach strategies including email updates, written literature in clear, readable language, face-to-face meetings and regular surveys. Host recurring employee workshops or lunch-and-learns to catch employees up on the latest changes to their plan options. Keeping employees up-to-date on the latest changes to their healthcare will cut down on employee stress, keep you connected with your workforce and keep your company’s overhead in check.

5. Make sure your employees are using the healthcare resources you already provide.
Employee benefits are useless if no one uses them. Employees who understand and utilize their benefits are more likely to be satisfied with their employer and recommend their organization as a good place to work, according to research from the Society for Human Resource Management. Yet, 80 percent of employees don’t even open the benefits materials given to them and of those who do, less than half don’t fully understand the benefits options available. In-person communication is the best way to cover confusing, and often changing, healthcare benefits. Make sure that resources about provided benefits – and about healthcare in general are easily accessible online.

Increase your employees’ access to their benefits resources. Create an environment that allows you to ensure that your employees are less stressed and more productive. That’s good for the health of your employees – and your business.

Is Protecting Confidential Employee Data A Priority For Your Company?

by Nicole Smith | Feb 13, 2018 | Blog

Is protecting confidential employee data a priority for your company?

Today, confidential data is at a higher risk of being stolen than ever before. A data security breach can quickly lead to identity theft, creating a chain-reaction of ever-growing problems.

Identity theft is not just stressful for your workforce, it costs your business money. More than half of identity theft victims reported missed time from work. Did you know that work-related stress leads to lost productivity, higher rates of turnover, lowered levels of financial wellness and even puts your employees at a greater risk for significant health problems?

Safeguarding your workforce from identity theft is a constant battle. Stay vigilant when collecting (and storing) sensitive employee data and stay informed on the latest and most innovative cyber-security options.

Show your employees you care about employee data with these five strategic steps.

The Equifax hack may be worse than previously reported. Last year’s hack affected 145 million Americans. In addition to Social security numbers, birth dates, driver’s license numbers and addresses, it is now being reported that tax identification numbers and driver’s license issuance dates were also stolen.

Hackers are stealing your identity – here’s what you need to know

Small business owners need to know about Amazon Web Services. AWS provides software to not only large corporations, but also to small businesses who may be seeking a way to offload software and infrastructure management.

Why your small business may benefit from AWS

Companies understand that happier and healthier employees are more productive. Improving their benefits will help retain your workforce and is much less expensive than raising salaries. With this year’s tax cut, companies are starting to spend a bit more on employee perks – do you know which employee benefits your team wants?

Which perks are the best perks after the new tax cut?

#MeToo hasn’t lessened harassment on professional social media sites. Since October 2017, there’s been a “public reckoning over workplace sexual assault and harassment.” So, why is it still pervasive? Why are inappropriate messages (still) being sent on professional networking sites? Are your employees receiving (or sending) harassing correspondence?

How to deal with cyber-harassers and their victims

Can tax reform influence defined benefit funding decisions? How will these benefit funding decisions impact pension management strategies? If your company is in the midst of figuring out how tax reform will affect everything related to short and long-term spending options, here are four steps that can help guide you – and your decision making.

2018’s tax reform and your company’s spending decisions

Are you attempting to build a diverse and inclusive workplace? We certainly hope so! Here are the most impactful recruiting trends when you want to recruit for diversity, inclusion, and social fit. Do you need to completely overhaul your company culture?

Refresh your selection criteria for an inclusive workplace

Color, texture, technology and atmosphere. These aren’t necessarily the words you think of when imagining positive affectivity and productivity in an office space. But, workplaces have come a long way – investing in person-friendly work environments improves efficiency, enhances productivity and inspires innovation.

Top workplace design trends for 2018

Mastering the High Stakes Benefits of Employee Financial Wellness

by Nicole Smith | Feb 7, 2018 | Blog

More employers recognize that financial wellness is table stakes for employees. What has also become apparent is that simply providing a 401(k) and retirement planning advice isn’t enough to reduce the financial stress almost all employees feel. Your employees need more.

Many employees struggle with paying down debt. They often have significant, unreimbursed, medical expenses or may be experiencing other financial hardships. This means they don’t always have the option to set aside funds for retirement, and have to “opt-out” of employer-sponsored savings plans simply because they can’t afford it..

From the employer’s point of view, adding one more benefit to an increasingly expensive pot might seem like a waste of money, especially if the employee benefits you’re providing aren’t being fully utilized.

But when it comes to financial wellness, the calculus is different. Forty-nine percent of employees feel that their workplace productivity would increase if their employer-sponsored benefits included financial planning programs in addition to existing retirement savings assistance. While retirement planning benefits are important, they don’t come close to capturing the full financial wellness needs of your workforce. Employees with financial security are much more motivated and focused at work.

In this week’s blog post, we run down the reasons that:

Financial Wellness Is About More Than Just Retirement Planning Advice

Do you feel like workplace financial wellness is out of reach? Ideally, financial wellness programs will lower health costs, enhance productivity, boost employee engagement and reduce employee absenteeism and turnover. Often, the only barrier is getting employees to try something new.

How to improve workplace financial wellness

Is your onboarding process thorough enough? If your onboarding process goes beyond basic training to include “acculturation,” then it probably isn’t. Whether it’s for new hires or internal transfers, when you consider the amount of time, staffing and money that goes into your onboarding process, shouldn’t it be fully comprehensive?

The importance of expanding your onboarding process – across the board

Positive investments in small businesses is driving economic growth. Small business investments continued to grow at the end of 2017 as payment delinquencies and defaults remained low. However, some warning signs in financial health are starting to emerge.

Small business investments – what you need to know

How do you know if your corporate wellness program is successful? The answer is much more nuanced than simple numbers and charts although those are important as well. Beyond standard metrics, a successful program will show employees with more energy, enthusiasm, productivity, creativity, higher engagement and lower absenteeism.

Here’s why financial wellness goes beyond numbers

The Tax Cuts and Jobs Act has altered two important tax breaks for homeowners. Homeowners with large mortgages and home equity loans should be paying attention to the new tax laws, as there are new limits on deductions for state and local taxes. There are fine details that you should read about to see how they’ll affect you – and your employees.

The new tax law may affect you more than you think

Is there a magic number that tells you how much to save for retirement? Or a magic 8-ball that tells you what to do with your retirement investments when the market drops? Unfortunately, magic won’t help you save for retirement. But, planning, saving, thinking outside of the box, doing a lot of research and speaking with an expert just might.

Your retirement savings goes beyond a market dip

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