Insight Three
Employee financial stress remains high and employers continue to offer competitive financial benefits to combat it
About half of HR leaders feel that employee stress around financial standing has increased in the last year.
While employee stress remains high, it is a smaller majority than in 2022 when two-thirds saw employee stress. Along with slightly improved financial stress, stress around healthcare costs have stayed steady since 2022. These shifts are likely due to improved inflation and a return to a semblance of normalcy post-pandemic.
What is happening to employee stress levels?
0%
Stress levels around financial standing have increased
0%
Stress levels around healthcare costs have stayed the same since 2022
%
of HR leaders say that competitive financial benefits are more important than last year.
These benefits can help ease employee stress around finances and the affordability of healthcare.
Action items for employers and brokers
For HR leaders
To meet employees’ need for financial benefits and combat financial stress:
- Add popular, tax-advantaged financial benefits such as a 401(K) plan or a Health Savings Account to your benefits package if you do not already offer one.
- Add employer matching to your 401(K) and HSA. Matching is a powerful incentive, as it’s essentially giving employees’ paychecks a boost while helping you save on FICA taxes. Matching also drives benefits adoption, which translates into increased savings for both you and your employees.
- Consider additional financial benefits, such as an Emergency Savings Account, tuition reimbursement, student loan repayment, and financial planning support. Each of these benefits can go a long way towards easing employees' financial stress.
- Consider adding post-tax benefits with Lifestyle Spending Accounts to cover day-to-day expenses that employees already pay for, such as wellness and fitness classes, home office setup, professional development, or pet care. These not only show you care for your employees, but can help them save money where it matters.
For brokers
- Work with benefits providers that offer easy set up, integrations, and a user-friendly dashboard and mobile application to make using and accessing financial and lifestyle benefits easy for your clients and their employees.
- Consult with your clients about adding additional financial benefits such as an HSA, Lifestyle Spending Account, Emergency Savings Account, tuition reimbursement, or student loan repayment.
- Educate your clients on the power, and FICA tax savings potential, of employer matching.