Skip to main content

Reducing employees’ stress through voluntary benefits

Employee meditating in office

Financial stress lowers employee productivity and morale and is far more common than you may think. According to an economic report from the Federal Reserve, nearly four in 10 American adults wouldn’t be able to come up with $400 in an emergency.  

This article explores how employers can reduce employees' financial stress with voluntary benefits. 

The real-world costs of financial stress 

Financial stress takes a toll on employers and employees alike. According to a recent Salary Finance survey, lost productivity due to financial stress costs the country around $500 billion each year. What’s more, employees under such stress are more than twice as likely to seek other employers, according to the same survey. And financially stressed employees are several times more likely to suffer anxiety attacks, experience depression, miss deadlines and produce lower-quality work than their non-financially stressed counterparts. 

How employers can help with voluntary benefits 

Financial stress can come from a variety of factors, many of which are outside the workplace. However, regardless of its cause, employers can help reduce their employees’ financial stress — both for the health of the employees and that of the business itself.  

A common theme in financially stressful situations is needing something now and having to borrow money to pay for it, creating a cycle of debt. This immediate need forces employees to make financial decisions that may be outside their best interests but necessary for a given situation, such as borrowing from a 401(k) or taking out a payday loan to afford car repairs.  

Maybe we combine the sentences so that "Employers can help in these situations by providing employee purchasing programs, low-interest loans and payroll advances. 

Summary: Additional ways to help employees  

At the end of the day, any effort to help employees avoid financially stressful situations can improve their health and the health of your business. Speak with TruePlan Benefit and Retirement Advisors to discuss strengthening your voluntary and employee benefits offerings. Our team of experts can help you review your current selection and make suggestions based on your organization’s goals. 

This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2020, 2023, 2024 Zywave, Inc. All rights reserved. 

Popular posts from this blog

What is HR vendor management? Overview with scenarios

Vendor management can be a litigious environment where efficiency, transparency and risk mitigation are paramount. With the right advisor in your organization’s corner, you’ll feel more confident navigating vendors and managing their services, ensuring streamlined processes and strategic alignment.   In this blog post, we'll cover the basics: What vendor management in HR entails, why it's important, how it can transform businesses and some scenarios in a few business types. Level up your knowledge and find the right partners to thrive.  Understanding vendor management in HR  Vendor management in HR involves the systematic management of third-party suppliers who provide goods and services essential to HR operations. This includes managing contracts, ensuring compliance with service level agreements and optimizing vendor performance to align with a company's long-term business goals.  A robust vendor management strategy can provide organizations with a structured ...
Read more

Employee Benefits Offerings: What Perks Can You Add?

Employee benefits can play a crucial role in attracting and retaining top talent. Beyond compensation and bonuses, offering a variety of perks can significantly enhance employee satisfaction and productivity. But what should you include in your employee benefits offerings?   What are employee benefits?   Employee benefits encompass compensation, bonuses and various perks outside an employee's wage. By offering flexible employee benefits, you can improve employee productivity and loyalty while attracting and retaining talented candidates.   Personalized benefits examples   The type of benefits offered can vary by industry. We've compiled some of the most popular options to help you explore possible employee benefits strategies .  1. Social opportunities   Employee perks don't always have to be tied to a benefits package. Sometimes, the best way to engage your employees can be through social opportunities. Group activities can help im...
Read more

Section 125 – Cafeteria Plans Overview

A Section 125 plan, or cafeteria plan , allows employees to pay for certain benefits on a pre-tax basis. Employers use these plans to provide their employees with a choice between cash and certain qualified benefits without adverse tax consequences. Paying for benefits on a pre-tax basis reduces the employee’s taxable income and, therefore, reduces both the employee’s and the employer’s tax liability. To receive these tax advantages, a cafeteria plan must comply with the rules of Section 125 of the Internal Revenue Code and related IRS regulations. Under these rules, a Section 125 plan must have a written plan document and can only offer certain qualified benefits on a tax-favored basis. Once an employee makes a Section 125 plan election, they may not change that election until the next plan year, unless the employee experiences a permitted election change event. Also, for highly compensated employees to receive the tax advantages associated with a Section 125 plan, the plan must pass ...
Read more