After more than two years of disruption from the COVID-19 pandemic, employees are feeling increased levels of stress, dissatisfaction and burnout at work, all of which has led to historic levels of resignations, including some leaving the workforce altogether.
Workforce retention resources
While some employment metrics are promising – such as the February 2022 uptick in job gains‡ and an increased percentage of workforce participation – employers should remain mindful of how benefits can attract and retain talent.
As employers look at all the resources and tools they have in place to stem turnover, compete for job candidates and drive engagement, it is important they consider their suite of employee benefits, including those aimed at financial security.
According to PwC’s 2021 Employee Financial Wellness Survey‡, since the start of the pandemic, 63% of employees say their financial stress has increased. Financial stress may also cause issues including distraction at work, avoidance or delay of medical care, or seeking a new job to better meet immediate financial needs.
Without tools and support to address financial wellness, many are struggling to manage day-to-day expenses, let alone planning for larger expenses or retirement.
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) and commuter benefit accounts.
Each of these account types offer employees the benefits of tax-advantaged accounts to better save and prepare for health care, dependent and commuter expenses. Alongside these tax-advantaged accounts are certain lifestyle accounts – like those that cover fitness 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 a roadmap to make their hard-earned funds work for them in times of crisis.
Employers should also evaluate the competitiveness of their benefits offerings, including spending account contributions. 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.
Partnering for success
It is important to carefully consider the administrator you partner with when offering benefit spending accounts. Consider partners that can offer a seamless 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 financial wellness tools that help them plan, save, and pay for health care, dependent, and commuter expenses. These tools should support year-round communication and ultimately, drive employee engagement.
Employees need support now more than ever. For those offering benefit spending accounts, it is important to spend the time and energy to help employees realize all the benefits of these accounts to improve their overall financial wellness and deepen their engagement in the workplace.
UMB Healthcare Services’ recent partnership with WEX ‡, a global leader in financial technology services, has positioned UMB as a one-stop shop for financial services related to employee benefits packages.
To learn more about UMB’s turnkey solution for HSAs and Benefits Spending Accounts, check out this feature article in the Kansas City Business Journal‡.
Learn more about UMB Healthcare Services, which ranks fifth in total accounts and fourth in total deposit assets among all HSA providers (Source: 2021 Devenir Year-end HSA Market Statistics & Trends Report‡).
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