The pandemic has left over half of Americans concerned about their financial security.1 As we near the end of the year, the uncertainty continues, even with the hope that a vaccine will be widely available in spring. During these times, it’s crucial for employers to provide their employees with reassurance and as much stability as they’re able. For many employees, financial security is the stability they’re seeking.
If you’re looking for an initiative that will increase the well-being and financial security of your employees, consider these four meaningful strategies.
1. Implement a Financial Wellness Plan
53% of companies now offer financial wellness programs.2 These programs are designed to better equip employees with financial skills and resources. Personal finance is a leading source of stress for Americans, and these programs serve to lessen these financial anxieties and increase security.3
A program can include lectures from guest speakers or resources such as educational videos or budgeting spreadsheets. The primary goal is to provide your employees with programs that not only empower them to take control of their finances but offer them the resources and support necessary to do so.
2. Make Connections with Financial Professionals or Institutions
Besides encouraging financial literacy with a wellness program, there’s another way you can improve financial fitness: partner with a financial professionals to offer planning services to your employees. Connection with financial professionals and institutions to assist your employees with financial planning is a great way to help them get their finances on track.
3. Add 401(k) Matching Contributions
If you don’t already utilize a 401(k) match, consider implementing one. As a refresher, 401(k) matching means that you, the employer, contribute a certain amount to your employee’s 401(k), contingent upon how much they contribute annually. This is typically determined by a percentage.
A 401(k) match directly benefits your employees, as well as encourages them to participate in the program, subsequently improving their savings habits and bettering their financial security. Don’t underestimate the power such a program has on the well-being and financial confidence of your employees.
Check out FJY Financials E-book on how to build a best-in-class retirement plan.
4. Updated Healthcare Coverage
Particularly with increasing health concerns, there are different kinds of healthcare benefits you can look into supplying for your employees that may be left uncovered through standard health insurance.
Hospital Indemnity Insurance
Hospital Indemnity Insurance covers hospitalizations. It provides benefits for employees should they be admitted to the hospital. Offering this as a benefit to supplement your employees’ health insurance is both relevant and promotes peace of mind.3
Critical Illness Insurance
Similar to hospital indemnity insurance, critical illness insurance offers financial coverage for catastrophic health events such as heart attack, stroke, or even severe COVID-related ailments. The treatments for these illnesses are often expensive, and the cost of care can quickly exceed what a standard medical insurance plan will cover. Critical illness insurance can pay the uncovered costs, plus the money can be used for other expenses related to the illness, like transportation or child care.3 Treatment for severe illnesses such as these are often more than a standard plan will cover and, as a result, can pose significant financial burdens.4
Financial stress is a concern for the majority of working Americans, and your employees are no exception. Working to improve the financial security of your employees both helps them financially and decreases their stress levels, allowing them to live and work more productively.
If you’re ready to boost your employee’s financial security, give us a call or check out our retirement planning services!
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.