Revolutionizing employee retention with financial wellness

The current economic climate has made it increasingly challenging for businesses to retain top talent, with nearly half of workers open to changing jobs for better financial wellness.¹ Companies can reassess their benefits packages to help them remain competitive and minimize employee turnover. Addressing employees’ financial well-being has become a critical aspect of talent management, and businesses are expected to adapt to the changing landscape to maintain stability.

The financial stress factor

Expenses for basic needs such as groceries and housing have been on the rise, leaving employees grappling with heightened financial stress. In a recent survey, more than half of survey respondents expressed feeling anxious about their finances, and the majority cited cost of living and inflation as contributing factors to their distress.² This financial concern can adversely affect employees’ mental health, overall job satisfaction, and productivity levels.

Businesses are now realizing the importance of addressing this matter and are incorporating financial wellness programs and resources to support their employees.

Revisiting financial wellness provisions

Understanding the high value employees place on financial benefits, such as defined contribution plans, employers can choose to reassess these provisions to ensure they meet employee expectations. This may involve evaluating the competitiveness of current offerings and exploring options for enhancements or expansion. Financial education and resources alongside benefits can help promote financial stability and well-being among employees.

Supporting employees with student loan payments

With federal student loan payments resuming in October after a three-year pause, businesses can find ways to assist their employees with the resulting financial impact. Assistance programs, such as financial workshops or student loan repayment contributions, can help alleviate the pressure. Encouraging open communication about financial well-being and providing resources can empower employees to handle the reinstatement of student loan payments more effectively.

Benefits brokers and innovative solutions

Benefits brokers, who navigate the ever-changing HR landscape, must be prepared to offer novel solutions to issues like rising healthcare expenses. They need to be well-informed about the latest industry trends and technological advancements to recommend cost-effective strategies. Tailored employee benefits packages can help companies provide customized healthcare options to their workforce.

Cost savings and effective client communication

As employers seek alternative options, brokers must efficiently present potential cost options and savings to help them through these uncertain times. By catering to the needs of their clients and providing transparent, tailored solutions, brokers can foster an environment of trust and confidence, helping employers to navigate through these challenging times.

The current economic environment underscores the significance of competitive financial benefits packages and the crucial role they can play in supporting employee retention efforts. Employers need to reassess and adjust their offerings regularly to remain attractive to top talent. By staying attuned to employee priorities, providing educational resources, and working with knowledgeable benefits brokers to develop innovative solutions, businesses can positively impact employee well-being in this uncertain climate.

This article was written by Kimberly Zhang from Under 30 CEO and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.

Did you know?

Voya offers several Workplace Solutions employers can offer to help improve employee financial wellness, including a student loan debt benefit, Emergency Savings Solution, myVoyage personalized financial guidance — and more.