Benefit Consultants - Rising Demand of Financial Wellness
Benefit Consultants - In the last few years financial concerns have become the biggest cause of stress for employees. The Covid-19 crisis has only increased the need for benefits that help workers reduce the stress they experience daily in their lives.
Fifty-nine percent of employees say finances cause the bulk of their stress and a recent Morgan Stanley Study states that 78% of employees who are experiencing high financial stress admit they are distracted by it at work.
Even before the outbreak of the pandemic, employees had been increasingly looking to their employers to provide benefits that help them with their lives outside of work. Financial challenges can range from managing everyday expenses such as bills and debt payments to saving for a major life event, a wedding, first home, education, to retirement.
A lack of financial knowledge can hold anyone back. Each employee faces a unique situation, with few reliable resources like where to find information and get financial questions answered, employees may continue to struggle..
Employers Looking For Your Guidance
In these changing and uncertain times, it’s more important than ever for employers to invest in financial wellness benefits to educate and inform employees about their options and resources.
As a result there is an increasing interest by benefits consultants and brokers to provide services beyond group benefits and retirement products. Financial wellness as an employer-sponsored benefit has moved to the top of mind for many companies spanning nearly all industries.
Several recent studies have shown the importance of offering financial wellness programs in-house, as a no-cost perk to the workforce, focusing heavily on improving the overall lives of employees by reducing money-related stress. These benefits bring value to the employee and improve company culture.
Employers are seeing in real-time how much of a safety net holistic financial wellness benefits are for their employees, particularly during challenging economic times. They are also seeing the role this benefit plays in improving employee productivity and loyalty, which can impact employers’ bottom line.
Clients, including plan sponsors and administrators are looking for the guidance and support by their benefit consultant or broker to help them develop and implement a formal workplace wellness strategy. Even if you are a smaller broker, you can still meet the wellness needs of your clients.
The advantages of a financial wellness are known throughout the benefits space to both employees and employers, but there is little spoken about the benefits advisors reap by promoting a financial wellness program with employer clients.
Financial wellness education can increase participation, bolstering plan participants’ chances of a successful, on-time retirement. In turn, this helps plan sponsors by reducing costs associated with retirement-age employees.
Financial wellness programs have the potential to improve the level of understanding of the basics of money management, leaving workers more capable of saving for retirement. Employees look to advisors for managing consumer debt, paying off student loans, and creating a monthly budget.
As a benefit consultant, brokers and advisors, an employer-sponsored retirement plan often delivers ongoing revenue, but only when employees are engaged with the plan. Offering financial wellness as a benefits advisor gives one the opportunity to discuss these important aspects of money management with each participant, and ultimately, increase contributions to the plan over time.
Ancillary Benefits Boost For Benefit Consultants
When employees have a clear understanding of what financial tools they can use to destress, save for retirement, or pay down costly debt, they are far more likely to feel confident in their ability to explore the addition of other employer-offered benefits. Supplemental benefits like a college savings plan, life or disability insurance give workers peace of mind that their total financial picture is covered.
Benefits advisors who embrace workplace financial wellness by offering it to each employee have the opportunity to develop lasting relationships with workers that can lead to ancillary business. Benefits consultants, brokers or advisors who take on individual clients can grow their practice immensely by offering financial education to participants first.
Adding financial wellness into the mix not only improves the business outcomes of the company, securing a long-term relationship with the advisor, but it also promotes individual interaction with workers who may need more assistance on a one-to-one basis. Overall, taking a step toward robust financial education in the workplace benefits all the employer, the employees, and advisors alike.