Employees are burdened with a host of challenges born from the COVID-19 pandemic and they want their employers’ help now, more than ever.
Bank of America released its annual workplace benefits report in which the bank surveyed employers and employees to gauge how organizations are contributing to workers’ overall sense of wellness and the evolution of benefits aimed to improve employee well-being.
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Sixty percent of employees say their mental, physical (54%) and financial (46%) health significantly impacts their overall well-being, yet only one-third of employers communicate about these issues more than twice a year, according to the Bank of America survey.
Employees want more from their employers and companies are feeling the pressure: 95% of the organizations surveyed told Bank of America they feel a sense of responsibility for their employees’ financial wellness, which now includes a larger focus on whole-person support, says Kevin Crain, head of workplace solutions integration at Bank of America.
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“Now employers are saying ‘I have a much greater responsibility here than just offering retirement savings plans,” Crain says. “Employers have a responsibility for healthcare savings, and to provide more immediate education and programs to help employees in a holistic way.”
Crain connected with Employee Benefit News to discuss employer’s financial wellness strategies and ways in which employers can contribute to their employees’ holistic wellness.
Are employers effectively communicating the value of the wellness benefits they are offering?
One big issue we found in the study is that the employers are not communicating. Ten percent of the employers surveyed even said they don’t really communicate, they just talk about benefits with new hires. It’s not enough and employees are telling employers that. Employers are doing things right by building more effective programs, but what they have not yet done as well as they should is communicate with their employees more frequently about utilizing these benefits.
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But, what I think is answering that issue is constantly evolving financial wellness communications through digital integration. Right now, I can look at everything in my life through digital integration: I can go online and look at my mental wellness app, I can access my banking, accounting and mortgage information, I can see my retirement program. Employers need to take advantage of digital as a way to answer that employee need, and even go beyond what the employees are asking them to do.
How are employers responding to the way financial stress is impacting employee wellness?
If you have financial insecurities and they're severe, I can almost guarantee you're having emotional stress, and I can then almost guarantee you're going to have physical issues. You can’t untie those three things and you’re starting to see employers respond to that in how they organize HR.
HR was traditionally organized in silos: the 401(k) group, the executive compensation group, the healthcare group, etc. Now HR is organized around wellness.
What actionable steps can employers take to help employees improve their financial situation?
The first thing they need to do is appreciate that the employee will go through different stages in their financial life during their time with the employer. Basic education is important; you can’t assume that employees understand how to even bank, how to build a budget, or how to have immediate savings. Bank of America offers Better Money Habits to work with employers to help people reach financial security.
Things like healthcare savings accounts can help fill an immediate financial need, for example. In the long-term, there are retirement savings programs. Employers need to step back and look at the entire wellness umbrella and make sure they answer each one of those needs.
