Financial wellness benefits can come in all shapes and forms, from day-to-day benefits like emergency savings assistance to longer-term benefits like saving for retirement. We have seven ideas for you if you’re looking to build a financial wellness program or improve the financial wellness benefits you’re offering your employees.
401(k) contribution matching
Encourage employees to save for retirement by offering an employer-sponsored 401(k) account and contribution matching. Most companies offer a 100% match if you contribute a certain percentage (e.g., 100% match at 4%) and then a reduced percentage match for each additional percentage (e.g., 25% match at 6%). This perk will incentivize employees to save more for retirement because they essentially get free money from their employer.
Who this benefit is best for: Employees looking to increase their retirement savings.
Emergency savings funds
One of the biggest challenges for employees is building their emergency savings. This benefit can take several forms: payroll advances, short-term loans, or cashing out your unused PTO. Additionally, employers are offering a new service called an emergency savings account (ESA), which deducts money from your paycheck and puts it in a savings account. Unlike 401(k) contributions, this money is taxable, but you can access it at any time without penalty.
Who this benefit is best for: Employees who want to start building up their emergency funds.
Student loan repayment assistance
Another top financial concern for employees is paying down student debt. Some employers offer guidance to help you understand and apply for student loan deferral, forbearance, or refinancing. Other companies help you repay student loans by matching your payments up to a certain amount. And some companies even allow you to convert your unused PTO into student loan repayment money.
Who this benefit is best for: Employees who have student loans they’re working on paying off
College fund assistance & tuition reimbursement
If you have a lot of employees with families, consider offering college fund assistance. This could look like financial guidance, applying for financial aid, or contributing to your 529 plan. You can even convert your unused PTO into 529 plan contributions. Additionally, if your employees are looking to upskill, consider offering tuition reimbursement to encourage them to expand their skill set.
Who this benefit is best for: Employees looking to return to school or saving for their children’s college funds.
Safety Net insurance
Safety Net insurance is extended coverage offered as a supplement to almost any type of loan or credit card, excluding mortgage and business loans. This coverage can protect you in death, illness, injury, or involuntary unemployment. It can also come in the form of medical insurance. This type of insurance can give employees further peace of mind, especially in times of such uncertainty.
Who this benefit is best for: Employees who want an additional insurance policy to protect themselves and their loved ones.
Reimbursements for commuting, child care, etc.
A simple financial wellness benefit you can offer your employees is reimbursing everyday costs such as commuting to the office, parking, and childcare. As employees feel squeezed by inflation, this perk can help provide some relief. Additionally, it’s an easy way to show your employees support.
Who this benefit is best for: Your entire workforce, especially if they have returned to the office.
Employee spending accounts
From FSAs to HSAs to life planning accounts (LPAs), employee spending accounts are a great perk to offer employees. These accounts promote company culture and offer a means to balance out your employees’ health insurance costs. Employee spending accounts show your employees that you emphasize work-life balance, which is crucial for attracting and retaining talent.
Who this benefit is best for: Your entire workforce, especially Millennials and Gen Zers looking for a greater work-life balance.
Financial wellness benefits are a top concern for employees in 2023. Make your financial wellness program a success with convertible benefits. Convertible benefits, like PTO, can help CFOs reduce costs and minimize turnover. Learn more about how the PTO Exchange platform can help employers offer top financial wellness benefits to their employees.
Learn more about how you keep your employees financially healthy in our new guide.
Published on Jan 26, 2023 by Rob Whalen
