Americans are in financial trouble. Sixty-three percent don’t have $500 in a savings account; more than 70 percent have less than $15,000 saved for retirement. The majority of Americans are in debt. That’s stressful. And that stress carries over into the workplace. Now enlightened employers are trying to help.
Let’s look at some recent news stories and new research studies that affect the field of employee benefits and HR issues.
Lack of savings is a top source of financial stress. According to the Center for Financial Services Innovation (CFSI), nearly half of all employees polled say their income is not equal to their monthly expenses. This means it’s likely that not many of your employees are able to save money for emergencies or retirement and each year they may sink deeper in debt – another top cause of financial stress.
How can you help your employees better manage their money?
In an article on cnbc.com Personal Finance, attention is drawn to the CFSI study and their recommendations:
Use money management apps, which can help schedule the best time to pay bills, and set up auto-pay, as well as apps that can help strategize the best way to pay down debt in order to reduce the amount of interest owed.
Are your employees missing out on free money for retirement?
Another study reviewed by cnbc.com Personal Finance found that 20% of employees aren’t contributing enough to retirement accounts to realize the full employer matching contributions. Don’t let your workers pass up this money.
One way to encourage them: If they can’t afford to bump up contributions just yet, see if your plan allows them to schedule an increase or sign up for an annual increase program. Time that to coincide with their next pay raise.
According Fortune.com, 60% of millennials say they’re looking to change jobs. The nationwide cost of that turnover is estimated to top $30 billion each year. How can you retain your young employees? This article gives some good suggestions: By building a high-trust culture.
Members of our armed services are especially susceptible to financial stress. Long deployments and frequent moves make it difficult for them to manage their finances efficiently. On top of all the sacrifices our service members make, they shouldn’t have to sacrifice financial security as well – but in fact, they often do. Here’s what’s being done to help.
Have you checked in on your remote workers lately? The expression “out of sight, out of mind” can really resonate for those who work in locations other than the company office. In fact, for many telecommuters, burnout and resentment come with the job. Here’s how employers can help.
Sitting may be the new smoking. Many of us spend long periods sitting at desks, working on our computers and talking on phones. Experts say this can lead to a number of health problems, from back pain to colon cancer. Encourage your employees to take a break.
No one really wants to sit in an office all summer. In addition to considering a summer Friday policy, try these eight strategies for keeping employees happy during the summer months.
Your employees want help with financial wellness. According to a study by Mass Mutual, 67% of employees said they’d like their employers to offer more financial wellness resources.
What’s good for your employees is good for your business.