Chicago, IL, Nov. 12, 2020 (GLOBE NEWSWIRE) — The Financial Health Network, the nation’s authority on monetary well being, at this time launched the “Know Better, Do Better: Building an Effective Financial Health Benefits Strategy” report in partnership with Morgan Stanley at Work, displaying that near 90% (86%) say they’re conscious of their workers’ monetary well being challenges, with 85% of corporations planning to take care of or improve their funding in monetary well being advantages on account of COVID-19.
The findings additionally revealed a rise in demand for 401(ok) loans or hardship withdrawals, and/or an increase in demand for pay advances. Forty % of employers who’ve seen such proof of worker hardship as a consequence of COVID-19 say they’ll spend extra on monetary well being advantages within the subsequent two years in comparison with solely 16% who haven’t seen an uptick in demand.
“Employers’ curiosity in monetary wellness has been rising for a number of years, and COVID-19 grew to become a watershed second,” mentioned Matt Bahl, VP and head of office at Monetary Well being Community. “The pandemic highlighted worker day-to-day challenges like maintaining with payments and paying off debt, and this visibility is translating right into a higher dedication to help the short-term and long-term wants of workers by designing advantages that help their monetary well being.”
Within the midst of the pandemic, employers are taking motion to deal with the monetary well being challenges of their workforce with most (82%) saying that they’ve included monetary well being into their human useful resource division’s strategic plans, signaling C-level consideration.
The report additionally highlights the hole between worker wants and the prevailing advantages options partially as a consequence of restricted metrics being utilized by employers at this time. Employers, although motivated by worker engagement and demand, depend on a restricted set of metrics to know the wants of their workers. Different report findings embody:
- 60% of employers report that worker demand is a high issue when making funding choices about monetary well being advantages, much more than budgetary issues (49%).
- Employer consciousness of worker monetary well being challenges is basically primarily based on restricted metrics, contributing to a niche between worker wants and options. The most typical methods of assessing worker monetary well being are via 401(ok) metrics (75%) and health-related insurance coverage claims (69%), which provide solely a restricted view into an worker’s monetary wants.
- The most typical varieties of advantages provided don’t handle most of the monetary well being challenges that workers face. For instance, fewer than 25% of employers say they provide advantages like childcare or eldercare help, emergency financial savings help, or debt-related advantages, which offer important help to workers particularly throughout turbulent occasions.
“Now greater than ever, it’s important for employers to supply monetary wellness and well being advantages which can be strategically aligned with their workers’ monetary wants,” mentioned Krystal Barker Buissereth, CFA, Head of Monetary Wellness, Morgan Stanley at Work. “The present surroundings has accelerated the necessity for employers to supply holistic wellness advantages and packages to assist scale back stress and enhance their workers’ monetary well being and well-being.”
The survey was performed by the Monetary Well being Community in July 2020, and polled 770 HR executives from mid-sized and enormous corporations throughout eight industries to know how conscious employers are of their workers’ monetary well being struggles, the actions corporations have taken to include monetary well being into their human capital methods, and the way companies are making monetary well being advantages choices in the course of the present disaster and past. Information and insights on this report have been developed with strategic contributions and help from Morgan Stanley.
To seek out out extra info and to learn the complete report, go to finhealthnetwork.org.
Concerning the Monetary Well being Community
The Monetary Well being Community is the main authority on monetary well being. We’re a trusted useful resource for enterprise leaders, policymakers and innovators united in a mission to enhance the monetary well being of their prospects, workers and communities. By analysis, advisory providers, measurement instruments, and alternatives for cross-sector collaboration, we advance consciousness, understanding and confirmed finest practices in help of improved monetary well being for all. For extra on the Monetary Well being Community, go to www.finhealthnetwork.org and observe us on Twitter at @FinHealthNet.
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