{"id":15005,"date":"2022-06-10T12:42:00","date_gmt":"2022-06-10T19:42:00","guid":{"rendered":"https:\/\/www.knowledgecity.com\/blog\/?p=15005"},"modified":"2024-05-24T13:15:58","modified_gmt":"2024-05-24T20:15:58","slug":"using-employee-financial-wellness-benefits-to-attract-and-retain-talent","status":"publish","type":"post","link":"https:\/\/www.knowledgecity.com\/blog\/using-employee-financial-wellness-benefits-to-attract-and-retain-talent\/","title":{"rendered":"Using Employee Financial Wellness Benefits to Attract and Retain Talent"},"content":{"rendered":"

Attracting and retaining<\/span> employees in a tight job market requires creativity, competitive data, and empathy. Having insights into the problems, concerns, and aspirations of today\u2019s job applicants can help position your organization to gain an edge in the recruiting arena.\u00a0<\/span><\/p>\n

With roughly two-thirds of Americans living from paycheck to paycheck and being justifiably concerned about short-term money needs, financial wellness benefits have become a strong selling point for job seekers. A growing number of organizations are responding to those needs and concerns. As an example, about half the companies surveyed said they plan on offering new or expanded childcare benefits to employees. As people struggle to balance family needs with work demands, employers willing to bolster benefits will have a competitive advantage in the labor market.<\/span><\/p>\n

Survey results<\/span><\/a> from the Society for Human Resources Management (SHRM) show that since the beginning of the pandemic, more organizations have been offering benefits like caregiver leave and mental health services. Employer-created emergency savings programs are also starting to gain traction as a means to attract talent and assuage fears of financial insecurity. The way the program works is that employees have the option of making automatic contributions to a personal emergency fund, every paycheck, and employers can match employee contributions as an added incentive.\u00a0<\/span><\/p>\n

According to TV host and financial author Suze Orman, most people will not put money into an emergency fund unless it is done automatically. Once that account is established, she said, it creates an array of benefits. \u201cNot only is it automated, but they [the employee] can take it out whenever they want and they don\u2019t have to pay taxes on it,\u201d she said. \u201cIt\u2019s all accessible to them, including the employer match.\u201d In 2020, she and Devin Miller created SecureSave, a platform that automates the process of creating emergency savings funds for employees. Miller says companies that have implemented the benefit see up to 60% adoption by its workers. He and Orman were featured in an article on <\/span>Human Resource Executive<\/span><\/a>.<\/span><\/p>\n

\"Two<\/p>\n

The Effect of the Great Resignation on Retention and Recruiting<\/b><\/p>\n

Research by SHRM<\/span><\/a> indicates that nearly half of U.S. executives surveyed are reporting much higher turnover at their organizations than usual. More than 4 in 5 (84%) also agree that job openings are remaining unfilled for longer periods of time than before the pandemic. SHRM’s President and CEO, Johnny C. Taylor, Jr. noted that employees are leaving jobs to pursue other opportunities in record numbers. “It’s a candidate’s market,\u201d he said, \u201cand organizations must respond by recognizing the need to think differently in how to recruit and retain talent, revisiting benefits and flexible work schedules, along with broadening the talent pool for open positions.”<\/span>\u00a0<\/span><\/p>\n

To stem the tide of resignations, 58% of business leaders surveyed say they are increasing starting salaries and wages for key positions. Other countermeasures include the implementation of new or additional remote work options, an increase in employee referral bonuses, and the introduction of new or additional merit increases.<\/span><\/p>\n

Employee Wellness Metrics are Expanding<\/b><\/p>\n

In recent years, employers have begun to recognize that employee wellness goes beyond the realm of physical and mental health. It also includes financial wellbeing, which can have a ripple effect on other aspects of a worker\u2019s life.\u00a0<\/span><\/p>\n

The <\/span>Harvard Business Review<\/span><\/a> reports that as the pandemic wore on, many companies expanded their wellness support for employees. A Gartner 2020 survey of 52 HR executives revealed that 94% of organizations made significant investments in wellbeing programs. In addition to increased support for mental health benefits and physical well-being, 38% of those surveyed increased expenditures for financial well-being initiatives.<\/span><\/p>\n

Types of Financial Wellness Benefits<\/b><\/p>\n

Research has shown that helping employees with financial wellness can improve retention and quality of work and create happier workplaces, according to an article in <\/span>Forbes Magazine<\/span><\/a>. Other strategies it recommends for promoting employee financial wellness include the following:<\/span><\/p>\n