Stock market woes. High gas prices. Rampant inflation. They're all taking a toll on the pocketbooks of workers, just as many were beginning to bounce back from economic setbacks sustained during the pandemic.
In today's challenging times, offering "just the basics" in employee benefits programs, like health insurance and retirement accounts will no longer cut it for many workers in the job market. If that's the case, what can employers do to attract and retain the highest caliber workers?
The answer is to really understand what people want and to prioritize helping them achieve their goals. Companies that embrace a holistic approach to financial wellness will come out on top.
Many Americans are struggling financially, and this stress is negatively impacting their well-being and work productivity. Over half (54%) of American adults have had trouble covering expenses between pay periods over the past six months, according to new
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On the flip side, workers are seeking help: 82% of workers between the ages of 18 to 34 expect a current or future employer to play a role in supporting their financial security and wellbeing, the study showed.
As we navigate the third year of the pandemic, employers are faced with an opportunity to rethink their employee benefits packages and make sure they address workers' pain points.
Financial wellness fosters employee loyalty
While recession fears rise and layoffs occur across industries, the job market remains tight as it recovers from the Great Resignation. More than ever, adequate compensation and benefits matter deeply, and workers are calling out for more personalized benefits.
Ceridian's survey showed that more than 8 in 10 North American workers wished their employer offered non-health benefits, such as on-demand pay and flexible work arrangements, and — if offered these options — 82% would feel more loyal to their employers. The desire for financial wellness benefits was even stronger among the millennial and Generation Z population, who said they'd be less likely to look for a new job if their current employer began offering more financial wellness tools.
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The signs are clear. Employees want to see more modern benefits geared towards their financial wellness goals, and employers who provide those benefits will better attract and retain talent.
Empower employees with flexibility and choice
Financial wellness isn't just about providing education and budgeting advice. It's about providing practical tools that empower people to take control of their financial lives.
Future-focused companies have adopted on-demand pay, which allows workers to claim their earned wages on any given day.
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We also know that millions of Americans — across all income levels —
With on-demand pay, workers have a safety net to protect themselves from these high-interest options by having instant access to their paychecks. Instead of waiting for payday, workers can get paid with just a tap on their mobile devices.
Financial wellness tools like budgeting, banking, and investing apps are easier to access than ever, thanks to mobile technology. Now, companies can add early wage access to the toolkit, and empower workers to have holistic financial wellness in the palms of their hands.
Simply put, providing these tools to employees is the right thing to do for workers and their employers. For a long time, standard benefits like paid time off could safely offer a certain level of employee satisfaction, but times have changed. Leading companies acknowledge that engaged and motivated employees are key to their success.
As we begin planning for 2023 and beyond, look for more companies to expand their offerings as they seek to maintain and improve employee productivity and well-being.
