For most people, saving for a rainy day is a luxury they cannot afford. Almost two-thirds of Americans can’t comfortably cover an unplanned $1,000 expense, finds a recent survey from Bankrate. The results of the study have remained consistent for 7 years, hovering between 63 and 59% of workers said they would face a financial hardship if they had to pay for an emergency car repair or unanticipated medical crisis.
Many of us use credit cards for unexpected expenses and deal with the financial consequences of paying off the balance later. Are there any other alternatives? What if relief came through your employer?
Typically, employers offer their workforce a benefits package that includes paid time off, life insurance, short- and long-term disability, health insurance and retirement planning options. Now, companies are listening to feedback from their employees and providing benefits and perks to help them plan for unexpected emergencies and other major life events.
Unum, an international benefits provider, is making workers’ financial security and health a priority. In a new program, specialized financial assistants work with employees to develop goals and solutions that helps them save for retirement. Participants also have access to webinars and guidance on financial wellness.
Results from Unum’s Total Wellbeing Surveys discovered three of the top six employee stressors are financially related and focus on the ability to manage financial emergencies and debt.
As organizations consider innovative benefits and perks that attract and retain top talent, it’s worth noting the advantages companies receive when they provide their staff with financial wellness tools and resources.
Employees want and need help with financial planning. The lack of a financial plan can have a profound impact in the workplace. When workers plan for their financial future, they understand how to save and earn more, how to spend less and plan for retirement.
Financial worries hurt worker productivity. When employees worry more about personal finance matters it’s difficult to concentrate on their work responsibilities. By equipping workers with financial wellness resources and tools, companies will reap the benefits of an engaged and loyal workforce.
Helps employees leave personal matters at home. Often, our personal lives impact our professional lives. When personal issues creep into the workplace, it can affect business outcomes including productivity and engagement. Companies that offer financial planning allow their staff to focus on job responsibilities.
Financial Health is Emotional Health. According to a MarketWatch survey, 73% of people who have a clear financial plan have lower stress levels. And 42% of respondents in a Mind Over Money study said they have difficulty concentrating on their work when they have concerns about their financial future. It’s important to remember that when employees improve one area in their life, it spills over into other capacities, including work.
For companies to make lasting progress, more must be done to solve real problems and provide access to financial wellness benefits. This can be achieved when companies invest in digital solutions that protect more employees and their families.