We are living in an era of blooming financial consciousness. In the aftermath of the pandemic, workers are more aware of their mental, emotional, and economic well-being. So, financial literacy and wellness rank among the top benefits employees seek in 2022 and beyond.
The Great Resignation wave has proven that employees desire more than just a paycheck; they want wellness rewards and benefits that make them financially resilient and in charge of their finances. Hence, most companies in the US are actively searching to add suitable financial wellness benefits to attract and retain top talent.
Financial Wellness Is on the Rise
“63% of employees say their financial stress has increased since the start of the pandemic.” - PwC's 2021 Financial Wellness Survey
While the post-pandemic workforce struggles to make ends meet and cover their student loans and debts, financial security and wellness are crucial.
Hence, to remain competitive in the hiring and retention game, employers consider revamping their benefits systems, which are ever-changing and regulation-riddled. Having financial wellness benefits beyond savings and a retirement plan would give employers a competitive edge in the fluctuating job market.
Moreover, having a robust financial health plan for employees could help companies solve complex money and budgeting struggles of employees, leading to greater employee financial health and productivity at work.
Rise of Financial Wellness at Workplace
To succeed in the ever-competing job market, employers must be well-equipped with financial wellness must-haves to offer their employees. Like every vital aspect of a benefits package, financial wellness should be addressed.
Henceforth, a suite of wellness benefits packages like retirement savings plans, life and disability insurance, and other financial planning and coaching programs can help you attract and retain better talent faster. These wellness benefits are an easy decision, as empowering your employees for their retirement is crucial.
Companies are also offering programs to connect employees with financial advisors. Financial planning programs cover wealth management, investments, and estate planning. Some companies offer emergency savings funds to help in cases of accidents and critical necessities that arise suddenly. If a natural disaster displaced employees from their homes, an emergency fund can help relieve that financial worry.
As the workforce has evolved to become the most multi-generational in our history, employees are looking for a broader range of options. Employers respond to this with new benefits options that support and promote their employees' financial wellness and aim to remove that rising financial stress. A happy employee is a focused employee.
Why Is On-Demand Pay Quickly Gaining Traction?
A new benefit of on-demand pay is gaining traction among employers who need help bringing employees back to work, retaining, and recruiting new talent to their workforce. On-demand pay allows employees to access funds on the same day the work is performed without the burden of sky-high fees familiar with payday loans. Workers no longer have to restrict and budget themselves until payday to meet their expenses.
The appetite for instant access to earnings or on-demand pay is getting hype as workers experience power and control over their finances instead of opting for predatory loans to meet their emergency expenses. It poses a simple yet essential question: Why are the people who need money the most not getting paid daily?
The question is backed up by an October 2019 study by the Workforce Institute at Kronos, suggesting a whopping 61% of employees across healthcare, retail, and manufacturing say they should not have to wait until a scheduled payday to access the money they have earned. More than half of all employees believe that on-demand pay is a more attractive benefit than additional paid time off.
28% of workers dip into emergency funds to meet monthly expenses, while 49% are still worried about not having enough retirement savings.
These statistics, along with the current wave of Great Resignations across the US, echo the importance of having well-thought financial wellness benefits so that employers can put themselves and their workers at a competitive edge. Due to financial stress and fluctuation, financial wellness trends are now inevitable for employers to stay abreast in a sea of competition.
With some of the most renowned wellness benefits like 401k plans, emergency funds, and financial advisory coaching sessions, the relatively new and easily implementable benefit of on-demand pay is gaining traction among employers and employees.
Food for thought.