How Employers Can Support Their Employees' Top Financial Priorities With Flexible Benefits

By Rob Whalen - Jan 20, 2023 12:00:00 AM - 5 MINS READ

The more uncertain our financial landscape becomes, the more employees rely on financial wellness support from their employers. On the other hand, employers also feel responsible for offering financial guidance to employees. In fact, 80 percent of employees think that employers should offer financial wellness support, while 62 percent of employers feel they need to provide financial wellness support. 

Therefore, employers should make a more conscious effort to support their employees' financial wellness by offering financial wellness benefits, training, and additional resources. 

Top Financial Priorities for Employees

According to a new survey published by TalentLMS, only 5 percent of employees have met their financial goals. In addition, the inability to meet financial goals has caused mental health struggles and stress across all generations, with the most affected generations being Millennials (66%), followed by Gen Z (59%), Gen X (47%), and Baby Boomers (24%). 

Employees have several financial priorities, but the top three financial wellness benefits they would like to receive from their employees are retirement planning, investment programs, and emergency savings

Other financial priorities include: 

  • Paying off credit card debt
  • Paying off a mortgage
  • Buying a home
  • Paying off student loans 
  • Paying healthcare expenses
  • Financial planning and education

Why Should Employers Offer Financial Wellness Support?

Offering financial wellness support is a win-win for both employers and employees. It can lead to higher job satisfaction and retention. Additionally, employees are more likely to stay at their current job if their employer offers financial wellness benefits, financial training, and resources. 

When an employer offers employees financial wellness support, employees get the help they need, while companies see more satisfied employees. Financial wellness support translates to more loyal employees engaged in their work. Companies also see greater employee productivity and stronger employee performance

According to a recent survey, 96 percent of employees found their employer's financial literacy or wellness program to be somewhat, very, or extremely helpful in reducing their financial status and reducing financial stress. 

Financial training and support are low investment, high output benefits, and when combined with financial wellness products (such as employee spending accounts, retirement contribution matching, etc.), create more stability and peace of mind for employees. In addition, financial wellness benefits are some of the best benefits you can expand in a recession.

Support Financial Wellness With Flexible Benefits 

Over half of Americans have taken early withdrawals from their retirement accounts to keep themselves afloat. If CHROs reallocate resources they've already budgeted to personalized forms of support for their employees, they can avoid unnecessary 401(k) withdrawals. Convertible benefits—like PTO—allow employees to turn their accrued PTO into student loan repayments, retirement contributions, and emergency savings.  

At a time when cutting costs is top of mind for the C-suite, that doesn't mean your benefits programs have to fall victim. Instead, offering a cost-effective, flexible benefits program that addresses your employees' top financial concerns is possible. Doing so will help you retain your top talent and help them remain engaged in the work they're doing. 

Learn more about how you can use PTO Exchange to convert unused PTO into the benefits that matter most to your employees. Request a demo today

 

Rob Whalen

Rob is co-founder and CEO of PTO Exchange.

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