Financial Planning Assistance During the Pandemic
The COVID-19 pandemic is not only challenging the way Americans live on a daily basis, but also posing significant economic threats that could have a lasting effect on their financial well-being. Furthermore, studies suggest that financial worries can affect employees’ health and productivity. That’s why the majority of employers believe they must help address these issues before they worsen.
Amid the pandemic, more employers than before feel responsible for helping improve employees’ financial well-being and reduce their stress. According to a recent Bank of America survey, 62% of employers feel “extremely” responsible for their employees’ financial well-being, compared with 13% in 2013.
Employers can choose to provide financial planning assistance in a number of ways, through HR, financial advisors or other third-parties. Assistance may include budget counseling, educational resources, and student loan paybacks and purchasing programs—anything that helps reduce employees’ financial anxieties. Employers should consider surveying employees to pinpoint what programs or resources would be most impactful for them.
Easing the financial worries of employees has many positive benefits. By helping employees with a major source of stress, employers can improve morale, productivity and overall employee well-being. Employers should review their current financial assistance offerings to ensure they can satisfy the evolving needs of their workers.
The Case for Child Care Benefits
Many employers offer child care benefits to their employees to help them find reliable child care their families can afford. Offering these benefits not only helps employees, but it also helps the whole organization by serving as a valuable recruitment and retention tool. Specifically, employees’ company loyalty increases in tandem with the quality of their benefits package. This is especially true for working parents who are offered child care benefits.
Additionally, child care services often pay for themselves by reducing turnover and absenteeism rates. Employers may reduce turnover costs by as much as $500,000 per year if they retain 10 employees per year at a cost of $50,000 per turnover (this cost may include training time and resources, signing bonuses, supplies and more).
While providing worksite child care and child care discounts are substantial investments for employers, they have the potential to become major recruiting and retention tools. Consider offering child care benefits to help your employees and your business.