Financial wellness benefits employees want

5 financial wellness benefits to help employees tackle their money issues

August 16, 2022 5:30 AM

In today's workforce, nothing is off limits when it comes to the support employees are looking for to improve their financial situation.

Forty-one percent of employees are currently living paycheck-to-paycheck, according to Willis Towers Watson, an increase from a pre-pandemic level of 38%. Without any extra funds at the end of the month, 75% of employees report money stress, with their top concerns being an inability to save for retirement, as well as challenges paying off debt and building an emergency fund, research from SoFi at Work found.

In order to dig themselves out, employees are increasingly asking their employer to provide them with financial wellness benefits, above and beyond what's in their traditional benefits package, says Jennifer Nuckles, EVP and group business unit leader at SoFi.

"The expectations in the past around competitive pay and friendly work environments are now table stakes," Nuckles says. "Employees' mindsets have drastically shifted as to what's important to them."

From one-on-one sessions with advisers, to help with buying a home, SoFi at Work conducted a survey to determine which financial wellness benefits are topping the priority list for employees today. Nuckles shares her thoughts on these in-demand benefits, and why they'll help employers win the Great Resignation.

Emergency savings funds

Fifty-one percent of Americans have less than three months worth of expenses saved, according to Bankrate. For younger employees in particular, who are often just beginning to build their savings, an emergency savings plan benefit can help employees establish better financial habits and alleviate the stress of unexpected financial pitfalls.

"What emergency savings funds do is help employees alleviate stress," Nuckles says. "It's a really low cost way for employers to offer a high value tool for employees who are looking to build this buffer that they haven't had to rely on in the past."

Retirement planning tools

SoFi at Work found that 64% of employees also want more help planning their retirement. Making sure you're offering an employer-sponsored 401(k) with a match is the least you can do to help employees prepare for their future, Nuckles says.

Read more:

Want to retire in Florida? It may not make financial sense

"The biggest thing that we do as employers is offer an employer contribution program, so employees can put in some money and the employer matches tax-free," Nuckles says. "Employers are making sure their non-compensation benefits are working harder for their workforce."

Financial planning support

Employees don't always know where to turn to ask for financial help: SoFi at Work found that 64% of employees wanted access to financial planners and advisers that can help them manage their finances. And those benefits can have a wide-spread impact on how employees show up to their jobs, Nuckles says.

"People are looking to manage their income, relieve stress and boost their productivity, and those are all related to their financial health," she says. "Financial well-being relates to things around improving credit score, having access to certified financial planners who can answer their questions one-one-one. Things that would have been covered during open enrollment, employees now want those things to be specific to them."

Budget tools

More than half of employees don't have a budget to keep track of their expenditures, and 56% don't know how much they spend month-to-month, according to The Penny Hoarder, a personal finance website. Employees are interested in tools that can help them budget and manage their money more effectively, SoFi at Work found, as 62% of employees requested budgeting tools as an employee benefit.

"Employees are saying, 'Hey, help me with my financial well-being, I'm looking for more assistance,'" Nuckles says. "Anyone who gets access to budget planning tools and other financial planning tools is taking more responsibility for their future, so I love that the workforce is moving in the direction of [providing] that."

Homeowner assistance programs

As employees continue to work remotely, where they're working from — and whether or not they can afford it — is top of mind. SoFi at Work found that 60% of employees are interested in home-buying-assistance benefits, where an employer provides education, resources and even matching funds to help employees find and afford their home.

Read more:

Inflation is taking a bite out of employees' salaries — here's how employers can help

"The biggest expenditure that people typically have is purchasing a home," Nuckles says. "Employers are looking for financial stability for their populations. They don't want people to jump job to job. Employers that are committing to providing a stable and consistent environment for employees are going to be the ones that are successful in the war for talent."