Reducing employees’ stress through voluntary benefits

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.

Innovative employee retention strategies: 9 fresh ideas

Employee engagement and retention are pivotal in every sector, but they carry even more weight in the not-for-profit space, where resources are often limited. High turnover can be both costly and disruptive, impacting productivity and damaging morale. In an era of workforce evolution, to effectively retain their top talent, organizations must explore innovative employee retention strategies that go beyond conventional methods. Engaged employees are distinguished by their higher productivity, motivation and loyalty, and they are more likely to stay with a company for the long term. Gallup recently updated its research article, The Benefits of Employee Engagement , finding that "low engagement teams typically endure turnover rates that are 18% to 43% higher than highly engaged teams." In addition to turnover, disengaged employees negatively impact a company's financial health, with turnover costs averaging six to nine months of the departed employee's salary, accordin

Executive disability income protection program: C-suite FAQ

Implementing a comprehensive risk management strategy is imperative for C-level executives and senior management at HANYS member hospitals. One critical, but often overlooked component, is the executive disability income protection program. But what exactly is this program and why is it vital for high-income earners? With increasing interest in executive disability income protection programs from C-suite executives, TruePlan Benefit and Retirement Advisors interviewed Bernard A. Gleeson, Director, Employee Benefit Services on Executive disability income protection programs FAQs. What is an executive disability income protection program? An executive disability income protection program (EDIPP) is a specialized form of disability insurance designed to supplement existing group disability plans offered by employers. These individual plans provide additional coverage beyond the typical monthly maximum benefit cap found in traditional employer-based offerings. By overlaying on top of g

Employer Q&A: What is Financial Wellness?

There is a significant gap between employees and employers regarding financial wellness programs, according to the Harvard Business Review . “80% of employees report being financially stressed. Only 28% of employers offer financial wellness programs,” the article states. Similarly, Forbes highlights a 2023 Transamerican Institute study showing that 77% of workers consider financial wellness programs an important benefit. With so much research on the need for these programs, what should employers do? The first way employers can bridge this gap is to learn what financial wellness is and how it can improve an employee’s overall being. In this short Q&A, we introduce the topic and offer some essential tips to get started. Q1: What is financial wellness? A: Financial wellness refers to the sense of security a person feels about their financial situation in all aspects of their life. It means having control over day-to-day finances, being prepared for emergencies and having a plan

Blog | Expert Employee Benefits and Retirement Plan Insights | TruePlan

Search This Blog