Peter Rice is the chief banking officer for the $2-billion Workers Credit Union, headquartered in Littleton.
Updated: January 10, 2022
know how
The next frontier of employee benefits
By Peter Rice
The pandemic has inspired many workers to re-evaluate what they are looking for in a job, leading to what many are calling The Great Resignation. The U.S. Bureau of Labor Statistics reported 4.3 million people quit their jobs in August of 2021. That’s nearly 3% of the American workforce. More than half (55%) of people Bankrate surveyed said they are likely to look for a new job in the next year. This is significant considering it costs companies 33% of a worker’s annual salary to replace them if they leave.
When figuring out how to retain and attract workers, many employers turn to improving work-life balance by offering employees the option to work from home. Others focus on boosting the physical health of employees by offering health insurance plans with physical health incentives for employees who join a gym or start a new diet.
Yet most don’t give their employees’ financial wellness the same consideration as their physical health. They should. Financial stress costs employers $4.7 billion per week. According to a Bright Plan survey of 1,500 workers, a fifth of workers said their financial health has worsened during the pandemic and 46% have had lower productivity as a result. According to a MetLife Employee Benefit Trends study, people who are less worried about their personal finances are more productive. In fact, 85% of financially healthy workers reported feeling more productive at work.
What if in addition to other benefits, employers offered their workers a way to improve their financial wellness? It takes more than sending them financial literacy information or connecting them with a webinar about how to plan their personal budget. It takes connecting them with a trained financial coach who can meet with them one-on-one. A good coach won’t judge, drop a guilt trip, or sell a product. They will answer questions and provide the tools and support that empower people to make good decisions, no matter what stage of life they may be in. Participating employees will experience less stress associated with money, greater satisfaction with their job, and potentially lower health costs.
Workers Credit Union’s Workers Way at Work allows Massachusetts employers access to financial coaches they can offer as a benefit at no extra cost to the employer. This added benefit has the potential to improve productivity and retention. Employees can be more fully dedicated to their job if their mind is not distracted by concerns about where they will get the money to meet their monthly bills or pay for those new tires they need before winter. Offering financial wellness as a benefit strengthens corporate culture, provides recruitment advantages, and increases participation in the company retirement plan. Most importantly, it shows employees the company they work for cares about their financial well-being and wants to work with them to contribute to their success.
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