Employees want more than a job, they want financial security and well-being. Benefits are a big concern for employees and their families. Companies eager to attract the best talent need attractive benefits packages. Today’s workforce faces new challenges requiring modern benefits solutions. Tom Woods, Senior Vice President of Sales at Fidelity Investments says the answers lie in bundled benefits packages.
Student-loan debt is at an all-time high. Employers enter the workforce years behind in debt. Additionally, an increasing number of adults are sacrificing retirement savings to pay their children’s tuition. Retirement is no longer the certainty it once was. Offering benefits programs targeting modern concerns helps employees secure their own financial future. Optional benefits such as debt assistance, loan payback, and retirement are available.
Employees entering the workforce with college loans face huge financial challenges. As a solution, Woods suggests employers offer student-loan administration programs, helping employees budget their savings and payments. Companies can be creative when crafting benefits. Woods says his own company recently added a plan to help pay student debt. Beyond incredible popularity with employees, the package serves as a valuable retention tool as well.
Studies have shown workers value these types of modern programs more than traditional 401k programs. Millennials and Gen-X worry about modern AND future financial obligations. They want to make sure they can plan for comfortable retirement, taking that into account when shopping employers.
Other innovative benefits options include Health Savings Accounts (HSA’s). Fidelity, evaluating their own company, noted significant employee interest in this program. Enrollment is increasing with younger employees at the front. Fidelity also noted increased interest in managed accounts. Woods stated enrollment increased over 13% since 2016. The majority of employees interested in managed accounts were older, with high incomes.
Woods says those who need the benefits most are the ones who aren’t using them. Most employees using money management strategies and financial planning are already secure. They feel comfortable investing their money in the future because they enjoy financial security now. It is the younger, busy employees Woods expressed concern over. Young employees are generally overextended without the time, ability, or desire to plan their financial future.
The modern employee has modern financial needs. Employers who want to offer attractive packages have many things to consider. Woods says focusing on four core employee needs categories can help employers tailor their packages. These four employee needs categories are:
- Health and Safety
- Economic Wellness
- Workplace Fulfillment
- Sense of Productivity
Ultimately, the goal for any benefits program is to maximize value in all four categories. Employees want to feel valued, and they want to know they have a future. Businesses can attract top talent with employee benefits programs offering value and security. Increased employee retention means less time and money spent on training and recruiting. Talk to an expert today to see how benefits can impact your business and your family.
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