In today’s economy, it’s more important than ever before for employers to focus on attracting and retaining employees. The current competitive market environment and higher expectations from candidates means employers need to differentiate themselves, and one way to do this is with workplace benefits.
Workforce retention resources
While some employment metrics are promising – such as the U.S. Bureau of Labor’s February 2025 uptick in job gains‡ and the workforce participation percentage remaining steady – employers should lean in to how benefits can attract and retain talent. To this point, it is important to routinely assess current and future employees’ needs and preferences through surveys or focus groups to make sure benefit offerings remain relevant and effective.
As employers look at all the resources they have to stem turnover, compete for job candidates, drive engagement and boost company culture, it is vital they consider a full suite of employee benefits, including those aimed at financial security.
Employees feel financial stress
According to the Employee Benefit Research Institute and Greenwald Research’s recent Workplace Wellness Survey‡, 73% of Americans say thinking about their financial future makes them feel stressed, with 45% expressing that worrying about their finances distracts them from work. Financial stress has the potential to cause additional issues including an avoidance or delay of medical care, decreased mental well-being or even seeking a new job to better meet immediate financial needs.
Without tools and support to address financial wellness, many struggle to manage day-to-day expenses, let alone plan for larger expenses or retirement. According to a new Bankrate report‡, 59% of Americans do not have the means to cover an unexpected emergency expense of $1,000.
While financial stressors can be complex, employers have the opportunity to better engage their employees through the successful use of employee benefit accounts, such as:
- Health savings accounts(HSAs)
- Flexible spending accounts (FSAs)
- Health reimbursement arrangements (HRAs)
- Commuter benefit accounts
Each of these account types offer employees the benefits of tax-advantages to better save and prepare for health care, dependent and commuter expenses. They also allow employees to take better control of their finances in a way that’s individually tailored to their financial situation.
Alongside these tax-advantaged accounts are lifestyle accounts – like those that cover fitness or therapy expenses – which help round out the employer-offered benefits package.
Promoting financial wellness
Helping your employees take a proactive, holistic approach toward financial wellness by examining healthcare savings, savings accounts and retirement funding can provide them with a roadmap to make their hard-earned funds work for them in times of crisis. With nearly 70% of Americans believing their employer has a responsibility to make sure employees are financially secure and well‡, it is now more important than ever to prioritize the unique needs of your employees and provide tools for financial education and stability.
Employers should also evaluate the competitiveness of their benefits offerings, including spending account contributions, especially since 51% of Americans want greater financial contributions from their employer. By seeding HSAs, for example, employers can reduce some of the stressors associated with making the switch to a high-deductible health plan paired with an HSA. This addresses the concern of having an out-of-pocket expense early on and allows employees to realize the benefit of potentially lower monthly premium costs.
Choosing your benefit account team and tools
Carefully consider the administrator you work with when offering benefit spending accounts. You want to ensure your account admin or custodian aligns with employees’ needs, preferences and provides clear communication for access, education, and support. Consider institutions who can offer a solution that is easy to implement, efficient to operate, saves time and money and—most importantly—attracts and retains employees.
In addition, you’ll want to offer financial wellness tools that help your team plan, save, and pay for health care, dependent, and commuter expenses. These tools should support year-round communication and, ultimately, drive employee retention and satisfaction.
Employees need support now more than ever. For those offering benefit spending and saving accounts, it is important to take time to help employees realize all the benefits of these accounts to improve their overall financial wellness. Supporting your workforce with benefits that make a difference in their lives can be a key differentiator for retention, culture building and productivity.
Learn more about UMB Healthcare Services, which has one of the best HSAs for 2025 among all HSA providers.(Source: Investor Business Daily’s Best HSA Companies 2025 List‡)
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