6 signs your employees' savings are suffering

Inflation has long outpaced wages, but the last few years have made it strikingly clear just how high the cost of living has become.

Over 80% of workers don’t believe their wages have kept up with the cost of living, according to job search site Monster, and a Monmouth University poll has found that 46% of Americans are struggling to maintain their current finances. While some employers may assume that financial stress is ultimately their employees’ business, a workforce weighed under money problems does impact a company’s bottom line, says Tom Spann, co-founder and CEO of Brightside, a financial wellness benefits provider. But before employers can identify solutions, they need to identify the breadth of the problem.

If benefit leaders note low retirement plan participation or frequent 401(k) hardship withdrawals (withdrawing a portion of your retirement savings early), then it’s a clear sign employees do not have enough money to plan for the future, says Spann. Their wages and financial wellness benefits are not meeting their needs if they can’t at least consistently contribute to their retirement savings.

The more unhealthy a workforce is, the higher the healthcare costs, notes Spann. If employees have adequate funds, then they are more likely to access preventive care like annual physicals and cancer screenings, ensuring they catch the condition early — the longer a person waits to address a health issue, the worse the condition becomes and the more expensive it becomes to treat. Similarly, if an employer notices their workforce has a higher rate of long-term health conditions, like diabetes, cancer, high blood pressure and heart disease, then they know their employees are likely not utilizing their health plans, possibly for fear of costs.

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