Employee Benefits

3 Ways Employers Can Provide Financial Support for Employees

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Employees are worried about their financial well-being. Many people say it’s their primary concern. They live paycheck to paycheck, having less than $1,000 to cover unexpected expenses. Employers can help ease employees’ financial concerns by offering the right benefits. Review three ways employers can provide financial support for their employees.

  1. Assist with student loan repayment

    Employees with student loans are overwhelmed by their debts. About 64% of employees with student loans owe over $20,000. Nearly 31% owe over $50,000 for college loans. Student loan debt is considered one of the largest consumer debt groups. It’s right after home mortgages and before credit card debts.

    Many employees are looking for employers who provide a student loan repayment benefit. This helps improve employees’ financial well-being. When money worries are under control, employees are happier, healthier and more productive at work. In the end, offering this benefit is an excellent strategy for retaining and recruiting top employees.

  1. Encourage financial well-being

    Nearly 62% of Americans live paycheck to paycheck. They struggle to stretch their paycheck to cover their families’ needs and save for future expenses. Due to the pandemic, many workers worry about money. They’re concerned their finances won’t recover for at least another year.

    Many employers are offering benefits to support employees’ financial well-being. In addition to medical, dental and vision insurance, some businesses are offering other benefits, such as:

    a) Emergency savings account – Employers provide a set amount to assist employees with unexpected financial expenses. This benefit helps employees avoid getting overwhelmed and worried when unplanned health needs arise.

    b) Financial counseling – Businesses arrange for a financial professional to provide tips and information to help employees with budgeting. Workers learn to recognize their spending process. They compare the money coming in vs. the amount spent and learn how to plan for expenses. Employees also find out how to set up an emergency savings fund, even it’s a small amount.

  1. Offer caregiving benefits

    About 61% of employees serve as unpaid caregivers for another adult. Many also take care of younger children. Businesses can support these caregivers by offering extra paid time off and flexibility to care for family needs. Some employers also offer backup care options for employees when they don’t have access to caregiving services.

In addition to finances, many employees are struggling to adapt to a post-pandemic world. Here are six ways employers can help workers adjust.

Sources:
Insurance News Net
Forbes
The Wall Street Journal