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

Employee Student Loan Debt: 10 Things You Need To Know, Part Two

Employee Student Loan Debt: 10 Things You Need To Know, Part Two

by | Jan 30, 2018 | Blog

Employee student loan debt: 10 things you need to know, part two. The student loan debt crisis isn’t going away. This is what employers need to know about it.

This article is the second part of a series on 10 Things Employers Need to Know About Student Loan Debt. Catch up with Part One, here.

Americans owe a combined $1.4 trillion in student loan debt — and employers are starting to feel the burden of that enormous debt. The vast majority of employees are financially stressed, and they are less focused, less engaged and less productive than those without debt and are more likely to take one a second job or skip work due to a stress-related illness.

The student loan debt crisis isn’t going away, but there are ways you help your employees cope with their financial stress and get back to work. Here are 10 important things you need to know about student loan debt and the struggle your employees are facing in paying it back:

6. Student loan debt is not a millennials-only problem.

Younger employees aren’t the only ones dealing with the stress of student loan debt. In fact, 2.8 million Americans aged 60 and older carry outstanding student loans from their own college education. This number is up significantly from 2005, where only 700,000 Americans in this age group carried outstanding loans. Your older employees may be struggling to repay debt from continuing education or are possibly paying off debt from sending a child or grandchild to school.

7. Stress over student loan debt is keeping your employees from major life milestones.

Millennials graduating with student loans are more interested in paying off their loan debt than they are in homeownership, getting married or having children. A study by the Federal Reserve Bank of New York has found that having student loan debt decreases homeownership at every level of higher education. Indebted millennials also less likely to set aside money for retirement or build an emergency fund, creating further vulnerability, possible additional financial debt and significant stress into the future.

8. Stress over student loan debt is making your employees sick.

Over half of young workers with student loan debt worry about it constantly, according to American Student Assistance, a nonprofit specializing in helping consumers finance their higher education. Stressing about massive debt isn’t just an emotional strain, it can also cause significant physical ailments from occasional headaches or gastrointestinal problems, to more chronic conditions such as high blood pressure or depression and anxiety.

9. Most employees wish they had more information about repaying student loan debt, they just don’t know where to look.

Repayment options for student loan debt are often complicated and difficult for consumers to navigate on their own. With private loans, interest rates and monthly payments can change with little to no warning. Certain options, like consolidation or forgiveness, often requires knowledge of how to make negotiations with whoever holds the loan. Don’t let your employees feel overwhelmed by their debt – employers hold a unique ability to help their employees manage their student loan debt and help build their financial literacy.

10. Most employees want their employers to provide them with resources on student loan debt.

Employees already rely on their Human Resources departments for information on workplace safety, benefits and managing retirement plans. Increasingly, they are looking to their employer and HR team to provide debt counseling, financial tools and management options and overall financial wellness. By offering debt counseling and financial literacy services, you show your employees that you understand the financial challenges they face paying back student debt and are invested in their wellbeing. Your employees will not only feel happier to work for an employer who cares about their wellness; as their financial wellbeing grows and their student loan debt decreases, your employees will be healthier, more present, more productive, and ready stick with your company for the long term.

Financial literacy and financial planning are key to reducing financial stress, student loan debt and creating financial wellness. The first step, however, is knowing how to get there. For your employees, student loan debt affects their ability to plan for the future and build productive and meaningful relationships. For employers, it means being able to attract and hold on to talented employees. Consider who in your workforce might be affected by significant student loan debt. The cost of a higher education shouldn’t cost your company a good work force and it shouldn’t hold your employees back from planning their future.

To get the complete picture about student loan debt and your employees, be sure to read Part One of this article here.

More on Student Loan Debt and Financial Stress

Employee Student Loan Debt: 10 Things You Need To Know, Part One

Employee Student Loan Debt: 10 Things You Need To Know, Part Two

Student Debt Financial Stress Haunts Millennials and Older Workers, Too

What Tops Financial Stress for Employees?

The Student Debt Crisis is Growing and Affecting Your Workforce. What Can You Do?

Employee Student Loan Debt: 10 Things You Need To Know, Part One

Employee Student Loan Debt: 10 Things You Need To Know, Part One

by | Jan 29, 2018 | Blog

Employee student loan debt: 10 things you need to know, part one. What employers need to know about how student loan debt affects their employees.

The U.S. has a student loan debt crisis. And employers are paying the price.

Over 44 million Americans are carrying a total of $1.48 trillion in student loans. Forty percent of adults under 30 and 16 percent of adults overall live with outstanding student loan debt, according to the federal reserve’s 2017 Survey of Household Economics and Decisionmaking.

Chances are, your employees are among those affected. Employees facing significant student loan debt are more likely to defer saving for retirement, buying a home, getting married and having children. They’re also more likely to seek out a second full-time or part-time job to cover their expenses. As a result, their concentration, productivity and overall physical health suffers from the accumulated financial stress.

The financial cost of higher education is only increasing with time, matriculating well-educated, inexperienced and deeply indebted graduates into the workforce. In this two-part series, we offer you 10 things you should know about how student loan debt affects your employees:

1. Student loan debt is the second-biggest type of personal debt in the United States.

Student loans are one of the largest contributors to overall household debt among Americans, second only to mortgage debt. While the overwhelming majority of those loans are federally held, there has been an increase in borrowing from private lenders. Private student loans are ineligible for loan forgiveness programs or income-based repayment programs, complicating repayment plans and decisions on where (and how) to seek debt relief.

2. The amount of student loan debt Americans owe is getting worse with time.

In February of 2017, the Federal Reserve Bank of New York announced that student loan debt had grown for the 18th consecutive year and that the amount borrowed doubled in the last eight years, reaching a total more than $1.48 trillion owed. Not only are more students are taking loans for higher amounts but they are paying them back at a slower pace than in the past.

3. Student loan debt is affecting your workforce.

Sixty-eight percent of all new college graduates have student debt. Even if your employees don’t have significant amounts of student debt themselves (which is a relative assessment), they’re likely to have friends or relatives who do. Student loan repayment plans average at $351 per month and that number isn’t going down any time soon. It’s important to note that the average annual US salary for 24 to 35 year olds is $39,000. Student loan repayments are killing your employees’ financial wellness and are averaging nearly 10 percent of their income, replacing retirement contributions, mortgage payments and possibly even monthly health insurance costs.

4. The average debt per student has risen to nearly $30,000.

One fifth of graduated student loan recipients aged 25-39 take on extra employment in order to make payments on their student loan debt. Employees working a second job can mean lower productivity while at work and a difficulty in maintaining a reliable work schedule. Overworked employees are also more likely to experience fatigue and burnout from the added stress of juggling multiple jobs – as well as the stress from their student loan debt.

5. The average interest rate per student loan is approximately 5 percent, meaning your employees actually end up paying back significantly more than what they borrowed.

The interest rate paid by a loan recipient is dependent upon which type of loan and repayment plan that they have been given. For federal loans, the current amount for direct subsidized and unsubsidized (the type provided to undergraduates) loans is 4.45 percent. At the graduate level, the interest rate is 6 percent. For people 60 and over who take out loans to help younger relatives, the rate is 7 percent. Private student loans carry interest rates averaging 9 to 12 percent. Depending on the repayment or consolidation plans, these high interest rates can quickly inflate the initial amount of the loan and add tens of thousands of dollars to what an individual is trying to repay. And, interest and late fees are paid before any monthly payments are applied to the original loan amount.

And there’s even more you need to know. To learn more about student loan debt and your employees, be sure to read Part Two of this article here.

More on Student Loans and Financial Stress

Employee Student Loan Debt: 10 Things You Need To Know, Part One

Employee Student Loan Debt: 10 Things You Need To Know, Part Two

Student Debt Financial Stress Haunts Millennials and Older Workers, Too

What Tops Financial Stress for Employees?

The Student Debt Crisis is Growing and Affecting Your Workforce. What Can You Do?

Financial Wellness Programs Your Employees Need

Financial Wellness Programs Your Employees Need

by | Jan 23, 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.

Are you providing the financial wellness programs that your employees need?

Financial wellness programs often go overlooked by Human Resources departments because employers don’t always understand the tangible benefits of reducing employee financial stress. If you know that your team members are carrying high levels of financial stress, don’t wait any longer to create a plan – and implement a solution.

Financial stress can put a major strain on your employees’ physical and emotional wellbeing. New studies show that 7 of the top 10 health problems afflicting Americans are exacerbated by financial stress.

Financial wellness starts in the workplace. The majority of employees spend an average of 12 hours per month worrying about their personal finances while at work and they’re waiting for their employer to help them with financial education and literacy. Having resources, tools and an understanding of how to tackle their financial stress will overwhelmingly bring down their stress levels. Addressing this staggering lack of financial literacy will not only raise your employees’ financial wellness – it will increase their overall health, productivity in the workplace, their commitment to your company and will lower your company’s turnover rates.

The top five reasons why financial wellness matters.

Tax reform! It’s incredibly confusing and is complicating filing processes for individuals, families, small businesses and corporations, alike. The new tax law will largely go into effect when you file your 2018 taxes (in April, 2019). But, there are still important and new things you need to know for your 2017 tax filing – this should help.

Tax law changes and what you need to know.

Are you providing employer savings plans? Providing your employees access to retirement savings plans allows them to strengthen their long term financial outlook. It also benefits your company’s bottom line – by raising their personal levels of financial literacy and wellness, it raises productivity and lowers turnover.

Simple ways you can help your employees save.

Are you on top of the 15 biggest HR challenges for 2018? With a constantly evolving workforce and the need to offer access to employee financial wellness, well being and mental health, employers have a serious responsibility to step up and provide the best possible work environment that they can.

The 15 biggest trends to look out for this year.

The new tax law: beneficial impacts for your company. Thanks to the Tax Cuts and Jobs Act, corporate tax rates are dropping from 35 percent to 21 percent. Companies are already beginning to see a windfall of extra cash at their fingertips – but how will that money be spent?

Companies are saving, big time.

This is America’s number one financial worry in 2018. Between having little to no savings, quickly climbing debt and an unclear vision for future retirement, there’s plenty to worry about. Seventy three American adults say that their most pressing financial concern is improving their credit score.

Here are steps you can take to improve that credit.

Do you have $1,000 to cover an emergency? Nearly 69 percent of Americans don’t. And, digging into your retirement savings to cover the costs of an emergency is not ideal, to say the least. Without an emergency fund, you take from your savings, you let problems fester and you add to your credit card debt.

Read about how one family planned and paid off their debt – ahead of schedule.

Believe it or not, it’s still only the beginning of 2018! You are still in the prime adjustment period between last year’s operations and this year’s best practices. If  you haven’t already, now is the time to reflect on 2017 and make the necessary changes to ensure your company is compliant with

2018’s HR best practices and latest employment laws.

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

10​ ​Simple​ ​Ways​ ​to​ ​Improve​ ​Employee​ ​Retention​ ​in​ ​2018

10​ ​Simple​ ​Ways​ ​to​ ​Improve​ ​Employee​ ​Retention​ ​in​ ​2018

by | Jan 8, 2018 | Blog

New Year’s resolutions often prioritize the old adage “out with the old and in with the new,” so it may feel odd to focus on employee retention this year. But, knowing how to keep the right people leads to better workplace morale, higher economic growth and can even enhance future recruitment efforts.

Here are some ways to make employee retention your number one resolution in 2018.

1. Reevaluate company culture.
Be honest about what you want your company’s culture to be. If your workplace has one too many dysfunctional teams, redundant projects or a general sense of low morale, it may be time to restructure. With input from your employees, you’ll have access to better understand the natural ebbs and flows of day-to-day activities. But, it’s your job to keep an eye on your company’s vision and be aware of how you, your employees and your company are in line with it.

2. Create a stable environment in times of change.
You can’t anticipate every change that will happen in your company but you can choose to be the face of collected calm and leadership during transition. Let your employees know their jobs are secure during times of flux by sharing your progress on the road to stabilization. Encourage open communication from your employees and provide transparency back to them. Acknowledge specific challenges they may face and provide relevant resources to help them overcome potential setbacks. A sense of stability will come from the top and it’s the job of company leadership to provide this.

3. Revitalize your hiring strategy.
In order to cut down on turnover, the first step is to ensure that the individuals you’re hiring actually want to be there. Front-load information about your company’s culture during the interview process. If you need team members to be available and on call late into the night, your new hires should know to expect a 10:00 pm phone call. Have your team keep a list of their own daily tasks (also a great way for you to better manage them) and have outgoing employees write descriptions for their empty positions – allowing for more detailed expectations for new staff members. Offering employee referral benefits is another great way to revitalize your hiring strategy.

4. Improve your training processes.
New employees should receive training conducted by experts in each department. You can either use in-house talent or hire an outside professional to lead on-the-job learning. This should introduce employees to new information, allow them to demonstrate their skills and knowledge and give them a tangible method to monitor their own improvement. Many successful training programs offer cloud-based components providing employees access to additional materials, allowing them to invest in self-directed learning.

5. Create room to grow.
Employees won’t stay with your company if they can’t imagine their future there. New hires should understand their potential for advancement. Meet annually to discuss their growth, encourage training programs and remain flexible to new challenges they might want to take on. Promote from within the company (rather than externally hiring for leadership positions) – it’s a great way display that your employees have a path forward and you want to help lead them there.

6. Welcome employee feedback.
Regular surveys are a great way to gauge what employees need in order to be successful – and to learn where you can step up, as an employer. Exit interviews are equally important. Don’t ask for feedback just for show. Let your employees know their problems are heard and that you want to resolve them by making changes based on their recommendations.

7. Build trust between employees and managers.
Management is often an employee’s first point of contact when they are experiencing a problem. Encourage an open door policy to ensure that employees come to management when issues first arise, not when they’ve reached a point-of-no-return. Management should be transparent with their expectations of all employees and offer positive reinforcement and support.

8. Be more flexible.
Work-life balance is crucial for managing stress, promoting creativity and generating enthusiasm for work. Giving employees the option to telecommute, offering a flexible schedule and allowing for “personal days” can show employees you are invested in their well-being, not just their bottom line.

9. Buff up your benefits package.
Offer benefits that your employees want – as well as what they need. Currently, the most requested benefits are: better healthcare coverage, flexible hours, work-from-home options, mental and physical health perks (like “personal” days, yoga classes and gym memberships), tuition assistance programs and making financial wellness education a priority. Employees are looking for benefits that make their lives outside (and inside) the office more enjoyable. When employees are more secure in their personal lives, they are more likely to feel satisfied in their work.

10. Invest in employee wellbeing.
Employees will stay at a company longer when they feel that they’re being challenged and respected. Benefits packages providing employees with avenues for self-improvement such as: financial management tools, on-the-job training programs and tuition reimbursement – can be even more attractive than salary increases. No one likes to feel stagnant in their career. Providing opportunities for growth inside and outside of work is essential for your employees, and their retention.

How to Raise Productivity and Employee Wellbeing in One Shot

How to Raise Productivity and Employee Wellbeing in One Shot

by | Jan 3, 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.

Financial stress in the workplace is real.

Employees spend an average of 12 hours per month stressed out about personal finances at work. This translates into billions of dollars in lost productivity annually. Lost time  at work isn’t the only way that your employees’ financial stress can negatively impact your company.  Financial stress can weigh so heavily on an individual, it can cause emotional strain, lost sleep and even significant health problems. A 2017 survey shows that two thirds of Americans are losing sleep at night due to anxiety over their money worries – everything from health insurance concerns, confusion and stress related to retirement savings, heavy educational expenses and the struggle to cover rent and mortgage payments.

Employees who are spending significant amounts of time worried about their financial stress at work are also losing sleep over these same stressors at home. This can quickly turn an effective team member into an ineffective financial strain for your company. But, there is good news. Nearly 50 percent of the Millennial population wants their employer to provide access to financial wellness tools in order to create a financial wellness strategy to help downsize their financial stress levels.  Given that by 2020, 50 percent of the workforce will be Millennials, it’s a real need.

The loss of a good night’s sleep and productivity in the workplace have the same source. The culprit? Personal financial stress. But, there’s an easy way to resolve these symptoms and it starts with you, the employer.

Financial stress is affecting your employees’ health.  Here’s what you can do about it.

48 percent of job seekers say that a “debt reduction” benefit would convince them to work for you. The value of specific employee benefits varies from employee to employee but these 5 offerings are requested by job seekers and workers alike – across different industries, locations and age groups. Employee benefits: What you should be offering.

Tax Reform is changing the taxability of your employee’s perks. The Tax Cuts and Jobs Act, which limits tax deductions businesses claim for employee benefits, is likely to cause employers to revisit their offerings. From family leave to commuting benefits, retirement contributions to bonuses, employee benefits and your company’s taxes are about to change drastically.

Do your employees request certain benefits and then not use them? You aren’t alone. Studies show that employees miss the mark when it comes to knowing what benefits they have and lack understanding on how to use them. Make sure your employees aren’t missing out on their provided benefits – and know what you should do, if they are.  5 reasons employees ignore their benefits.

Does your company offer Financial Wellness benefits? Studies show that your employees wish you did. EBN’s research tells us that the main reason employers aren’t providing financial wellness is simply not knowing where to begin. We don’t think that’s a good enough reason. Financial wellness benefits everyone. See how you can gain the competitive edge with your employees.

Currently engaged in branding your company? Personal branding is like any form of marketing and requires knowledge about yourself as well as your audience. Successful branding will position your company as a credible industry expert and thought leader. Your branding to-do list, here.

What happens when HR is outsourced… to a robot?  Amber is an AI (Artificial Intelligence) chatbot and it’s taking the office place by storm. In just 1 year, 37 companies have implemented this AI to take care of their “people management,” keeping tabs on employee issues, without using actual people – or  employees – to do so. Can this AI technology save billions in “people problems?”

People leave managers, not companies. You’ve heard it before: 50 percent of employees have quit otherwise reasonably satisfying jobs in order to get away from their manager. Actions of a poor manager can negate millions of dollars spent on employee wellness and benefits packages. Here’s what you should know about the No. 1 employee benefit that you don’t even know about.

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