3 Meaningful Ways You Can Help Boost Your Employees’ Financial Security in 2021
The pandemic has left over half of Americans concerned about their financial security.1 As we near the end of the year, the uncertainty is only continuing. During such a tumultuous time, it’s crucial for employers to reassure their employees and offer as much stability as they’re able - and for many employees, financial security is the stability they’re seeking.
If you’re looking for initiatives that will increase the well-being and financial security of your employees, consider these four meaningful strategies.
1. Implement a Financial Wellness Program
Fifty-three percent of companies are now offering financial wellness programs.2 These are programs designed to better equip employees with financial skills and resources. They serve to lessen financial anxiety and increase security, especially with personal finance being a leading source of stress for American employees.3
Such a program could include lectures from guest speakers or educational resources such as videos or budgeting spreadsheets. The primary goal is to provide your employees with programs that not only empower them to take control of their finances but offer them the resources and information necessary to do so.
2. Make Connections With Financial Professionals or Institutions
Besides encouraging personal financial literacy with a wellness program, there’s another way you can improve financial wellness: partnering with financial professionals to offer professional planning services to your employees. Connecting with financial professionals and institutions to assist your employees with financial planning is a great way to help them get their finances on track.
3. Review 401(k) Plan Design
If you aren’t already utilizing 401(k) matching or had to get rid of it due to COVID, consider implementing it. As a refresher, 401(k) matching means that you, as the employer, contribute a certain amount to your employee’s 401(k), contingent on how much they contribute annually. This is typically determined by a percentage. There might be other features such as ROTH and automatic enrollment that could enhance your plan as well.
This not only directly benefits your employees financially, but it encourages them to participate in the program, subsequently improving their saving habits and bettering their financial security. Don’t underestimate the power such a program has on the well-being and financial confidence of your employees.
Questions on how to provide these services? Contact us.
- https://buildcommonwealth.org/about/coronavirus
- https://newsroom.bankofamerica.com/press-releases/global-wealth-and-investment-management/employers-offering-financial-wellness
- https://www.metlife.com/content/dam/metlifecom/us/ebts/pdf/ebts-financial-wellness-2020/Metlife_EBTS_Financial_Wellness_Report.pdf