09 Aug What to Look for in a Financial Wellness Program for a Post-COVID-19 World
Employers want to help employees meet their short-term financial needs during the COVID-19 pandemic first. Employees are seeking financial guidance to help them navigate the economic fallout from the COVID-19 pandemic and take control of their finances. Nearly 60 percent of workers say that they or a close family member have been financially impacted by COVID-19, according to the latest Modern Wealth Survey by Charles Schwab. They’re 15 percent more financially stressed than they were before the pandemic and they think their increased stress might have a lasting effect on their wellbeing. It’s prompted many of them to start taking steps to improve their personal finances and employers are eager to help.
Financial stress is one of the top motivators driving organizations to invest in financial wellness programs and 40 percent say that addressing financial stress is a top reason for increasing voluntary benefits, according to a new survey by Buck. “Financial wellbeing is clearly a top priority for employers,” said Brian Stitzel, U.S. Health Practice Leader for Buck. “Now, as we navigate the impact of COVID-19 on the U.S. economy, it’s even more critical. Workers who’ve had wages reduced, been furloughed, or re-hired after a period of unemployment, may need extra support. And employers recognize that using voluntary benefits to help meet these employee needs can benefit their organization by lowering costs and increasing loyalty.”
What to Look for in a Financial Wellness Program
Employees are concerned about missing mortgage or car loan payments, using credit cards to pay for everyday expenses, draining their savings accounts, and withdrawing from their retirement savings in the next few months. Helping employees meet short-term financial needs to prevent scenarios like these is a top priority for employers. When looking at the features of financial wellness programs, employers are most interested in:
- 68 percent of employers want to help employees budget and save
- 66 percent of employers want to help employees manage their credit card debt
- 59 percent of employers want to help employees deal with unexpected medical expenses
- 58 percent of employers want to help employees retire when they’re ready
Employers are also considering adding financial wellness benefits that support emerging employee financial needs:
- 20 percent want to add student loan guidance and refinancing
- 18 percent want to add a student loan repayment benefit
- 13 percent want to add hospital indemnity insurance
- 11 percent want to add long-term care insurance
It’s important that employers choose a financial wellness program that is flexible enough to meet the varying needs of their employees both now and as they change over time. If you’d like to know more, send us your questions, feedback, topic suggestions, and more to contact@workwelldaiy.com
