The pandemic has left over half of Americans concerned about their financial security.1 As we near the end of the year, the uncertainty is only continuing. During such a tumultuous time, it’s crucial for employers to reassure their employees and offer as much stability as they’re able - and for many employees, financial security is the stability they’re seeking.
If you’re looking for initiatives that will increase the well-being and financial security of your employees, consider these four meaningful strategies.
1. Implement a Financial Wellness Program
Fifty-three percent of companies are now offering financial wellness programs.2 These are programs designed to better equip employees with financial skills and resources. They serve to lessen financial anxiety and increase security, especially with personal finance being a leading source of stress for American employees.3
Such a program could include lectures from guest speakers or educational resources such as 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 information necessary to do so.
2. Make Connections With Financial Professionals or Institutions
Besides encouraging personal financial literacy with a wellness program, there’s another way you can improve financial wellness: partnering with financial professionals to offer professional planning services to your employees. Connecting 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 aren’t already utilizing 401(k) matching or had to get rid of it due to COVID, consider implementing it. As a refresher, 401(k) matching means that you, as the employer, contribute a certain amount to your employee’s 401(k), contingent on how much they contribute annually. This is typically determined by a percentage.
This not only directly benefits your employees financially, but it encourages them to participate in the program, subsequently improving their saving 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.
4. Updated Healthcare Coverage
Particularly with increasing health concerns, there are different kinds of healthcare benefits you should 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 is 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. Sudden events such as these are often uncovered by health insurance and, as a result, can pose significant financial burdens.3
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.
We are a trusted fee-only financial advisory firm to individuals and small businesses in the Akron/Cleveland area and all across the country. Please feel free to give us a call at 330-836-7000 to schedule an introductory conversation and we'll partner with you to design a business blueprint to navigate through the COVID-19 crisis together. You can also schedule an introductory conversation with us here.
Since 2004, TCM Wealth Advisors has been providing Fee-Only Fiduciary Advice to our individual and small business clients in Northeast Ohio and all across the country.