Enhancing Employee Benefits with Financial Wellness Solutions
As employee benefits continue to evolve, financial wellness is becoming a key component of competitive benefits packages. For brokers, advocating for these programs can significantly boost the value you offer to your clients and they offer to their employees. In this blog, we’ll explore the importance of financial wellness programs, their benefits to employers and employees, and how you, as a broker, can effectively incorporate them into clients’ benefit strategies.
The Growing Importance of Financial Wellness
Financial wellness refers to an individual’s ability to manage their finances effectively and achieve financial stability. With rising concerns about economic stability and personal financial security, employees are increasingly seeking support from their employers in this area. According to PWC, nearly 60% of full-time employees are stressed about finances.1 This can negatively impact productivity and overall well-being.
Benefits of Financial Wellness Programs
- Enhanced Employee Productivity
Financial stress can lead to decreased productivity and increased absenteeism. By offering financial wellness resources, employers can help alleviate this stress, leading to a more focused and productive workforce.
- Improved Employee Retention and Engagement
Employees are more likely to stay with an employer who invests in their overall well-being, including their financial health. Financial wellness programs can improve job satisfaction and loyalty, reducing turnover rates.
- Attraction of Top Talent
In a competitive job market, comprehensive benefits that include financial wellness programs can set employers apart. Top talent is attracted to organizations that demonstrate a commitment to supporting their long-term financial goals. In fact, by 2025, 50% of employers are expected to offer financial wellness benefits, meeting the growing demand for financial stability and literacy.2
- Reduced Healthcare Costs
Financial stress is linked to various health issues, including anxiety, depression, and heart disease.3 By addressing financial wellness, employers can indirectly reduce healthcare costs associated with stress-related illnesses.
Key Components of New Benefits’ Financial Wellness Solutions
New Benefits recognizes the importance of well-rounded financial wellness programs that empower employees to achieve financial stability and peace of mind. Our solutions include:
Questis offers a personalized coaching platform that provides tools and guidance for employees to confidently manage their finances—from college expenses to major purchases and budget management. Unlimited virtual access to a dedicated, unbiased financial coach ensures support through any changes or challenges employees face.
Financial stress impacts one in three employees, leading to annual productivity losses. Our Financial Wellness benefit supports employees through major life events and financial milestones, offering personalized coaching from accredited counselors and access to a comprehensive Online Financial Wellness Center with valuable resources.
How Brokers Can Advocate for Financial Wellness Programs
As a broker, you play an important role in helping employers understand the value of financial wellness programs and how they can be integrated into existing benefits packages. Here are strategies to effectively advocate for these programs:
- Highlight the ROI
Demonstrate the return on investment of financial wellness programs by sharing data and case studies that show their impact on productivity, retention, and healthcare costs.
- Provide Customizable Solutions and Expert Collaboration
Offer tailored financial wellness solutions that meet the unique needs of different employee demographics, enhancing their financial literacy and security. New Benefits can help you provide high-quality resources, including budget management tools, personalized financial coaching, and additional services designed to support and improve employees’ financial well-being.
- Communicate Effectively
Effective communication is vital for maximizing the success of financial wellness programs. New Benefits’ technology platform facilitates seamless access to financial wellness resources, driving higher awareness, utilization, and ROI. With tools like My Wallet and My Insurance, traditional benefit information is easily accessible. Employers can utilize My Benefits Work for custom communication strategies, including push notifications and member engagement emails, to keep employees informed and engaged.
- Offer Additional Employee Support and Advocacy
With benefit changes almost certain at renewal, employees often encounter higher deductibles and cost shifts, increasing their financial burden. Advocacy solutions like Alight Navigator and Health Advocate can assist employees in understanding their insurance programs and navigating transitions. New Benefits can integrate these advocacy solutions with financial wellness programs, enhancing the personalized support employees receive while reducing the administrative load on employers. This integration ensures employees get tailored support that aligns with their financial needs and mitigates the impact of benefit changes.
- Deliver Carrier-Agnostic Solutions
As workforce dynamics evolve, traditional group-based benefits may lack flexibility. Non-traditional benefits, such as financial wellness, caregiver support, and work-life services, offer consistent support regardless of employee status or benefits eligibility. While traditional insurance benefits often change annually, non-traditional benefits remain stable, providing a reliable support structure. Advocacy solutions, specifically designed to be “plug and play,” integrate seamlessly into existing benefit packages, ensuring a smooth transition and dependable support for employees, even as traditional insurance benefits fluctuate.
The Bottom Line
Financial wellness programs are no longer just a nice-to-have addition to employee benefits; they are becoming a necessity in today’s workplace. As a broker, you have the opportunity to guide employers in implementing these programs, enhancing their benefits offerings, and ultimately improving the well-being and productivity of their workforce. By advocating for financial wellness solutions through New Benefits, you can help employers create a supportive environment that attracts and retains top talent, leading to long-term success for both the organization and its employees.
If you’d like to provide financial wellness solutions to your clients now, contact our benefits pros at NewSales@NewBenefits.com.
SOURCES CITED
- PWC. “PwC’s 2023 Employee Financial Wellness Survey.” PwC, 2023, https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html.
- Schomer, Stephanie. “HR and benefit leaders’ 10 lessons for 2024.” Employee Benefit News, 28 December 2023, https://www.benefitnews.com/list/hr-and-benefit-leaders-10-lessons-for-2024.
- Harris, Diane. “How Money Problems Lead to Stress and Illness.” Time, 15 April 2024, https://time.com/6966650/money-stress-illness/.
