Offering employee benefit packages shows your employees that you are invested in them, their health and wellbeing, and their future.
Having the right benefits in your package is one way to attract top talent by differentiating you from your competitors.
The right benefits can also help you retain the talent you have, reducing the money you’ll need to spend on employee turnover.
However, not all benefits are created equally.
Your employees are looking for specific benefits that will help them in all areas of their life.
Since the COVID-19 pandemic, the most sought-after benefits are those that pertain to their financial security.
Why Financial Benefit Incentives?
Before the pandemic, employees experienced financial stress.
One study in early 20201 showed that 40 percent of employees say finances are their top stressor over relationships, jobs, and health. These numbers only got worse after COVID.
A survey from the National Endowment for Financial Education2 found that 88 percent of American employees are now experiencing financial stress – in many instances, due to a lack of preparedness for an economic downturn.
Because of this, employees want to see financial wellness benefits offered by their employers.
A SoFi at Work survey3 found that three out of five employees want to see financial benefits due to the impact of the pandemic, while over half said that offering the needed benefits would reduce their stress.
Here are four financial benefits that employees would like to see offered as part of a standard package.
#1: Retirement Plans
There are many different kinds of retirement plan options that fit the needs of businesses of all sizes.
When looking for a retirement plan that fits the needs of your employees, consider:
- Benefits offered
- Cost to your business
- Administrative assistance
- Ease of access
- Matching funds
#2: Non-Qualified Deferred Compensation Plan
A deferred compensation plan allows an employee to earn money in one year but receive that money later.
Although pensions, retirement plans, and employee stock options are deferred compensation plans, they are known as qualified plans and fall under the umbrella of retirement plans.
In this case, we are talking about non-qualified plans, which are written agreements between you and the employee.
With a non-qualified plan:
- The compensation can be paid at any point, not just at retirement
- Has no contribution limits
- Can be given to certain employees without offering it to all employees
Some employees, especially those with a high income, like the idea of reducing their tax burden now and receiving the money later when their tax burden will be lighter.
Companies like the idea of non-qualified deferred compensation because they can invest the money back into the business.
Additionally, if an employee leaves the company before completing the agreement, they lose out on the money, providing a strong incentive for top employees to remain with the company.
#3: Group Life Insurance
An employer covers a group of employees with group life insurance, providing coverage as a multiple of annual salary.
This allows employees to get insurance at a lower cost.
A recent survey found that 59 percent of workers4 stated they would purchase group life insurance if their employer offered it.
Here are their reasons why:
- Peace of mind – 53 percent
- Protect family from future hardship – 44 percent
- Pay off debts and final expenses in case of their death – 39 percent
- Leave an inheritance – 23 percent
- Replace a partner’s income in the event of their death – 21 percent
#4: Offer a Holistic Financial Wellness Program
A holistic financial wellness program offers employees the knowledge, tools, and motivation to make financial choices and create financial habits that allow them to live a happy life within their means.
To ensure that employees experience financial wellness, the program provided should address the needs of your workforce.
Learn what sets "holistic" financial wellness programs apart from others: 6 Must-Haves for a Holistic Financial Wellness Program
The PwC 8th Annual Employee Financial Wellness Survey5 found that employees want the following in a financial wellness program:
- Student loan repayment benefit
- Access to unbiased counselors
- Help understanding and using employee benefits
- Identity theft protection
- Mobile access
Of course, the best way to determine what your employees want and need is to ask.
Enrich offers a holistic, personalized platform for financial wellness. Your employees will have access to:
- Financial personality assessment
- Interactive budgeting tool
- Student loan snapshot
- Retirement analyzer
- Credit card paydown tool
- Credit score estimation tool
- Enrich Community
- Live, independent financial counselors
- Interactive, multimedia educational courses
Each section of the platform helps your employees find specific steps to improve their financial situation.
As we head into 2022, business owners should consider offering these financial benefits to their current and future employees in order to create a thriving workplace.
1 - https://www.businesswire.com/news/home/20200212005534/en/Salary-Finance-Study-Finds-More-Than-40-percent-of-American-Workers-Are-Feeling-Significant-Financial-Stress-Despite-Low-Unemployment-And-High-Job-Growth
2 - https://www.nefe.org/press-room/polls/2020/survey-covid-19-crisisi-causing-financial-stress.aspx
3 - https://www.sofi.com/blog/financial-wellness-benefits-survey-at-work
4 - https://www.insurancebusinessmag.com/us/news/breaking-news/survey-many-american-workers-want-life-insurance-as-an-employee-benefit-176899.aspx
5 - https://www.pwc.com/us/en/industries/private-company-services/images/pwc-8th-annual-employee-financial-wellness-survey-2019-res