HSA company, Clarity Benefit Solutions, shares tips for improving employee financial health.
With all the attention that is given today to employee physical and emotional well-being, employers may not realize that financial well-being is also critical to employees surviving and thriving in the workplace. The following are some tips businesses can implement to improve their employees’ financial health.
Employers should offer their employees financial assessments. Not only it is a great way for employees to educate themselves about their options, an assessment can point out their financial strengths and weaknesses. Employees will be engaged in their financial future—setting short- and long-term goals as they realize how best to focus their time and efforts.
At this time, it is important to steer employees toward free financial resources. Today’s technological world means there are a plethora of opportunities to glean a financial education—from social media platforms to podcasts and internet articles. Employers can have an active role in assisting employees regarding how they should get started by determining the specific areas they should focus on. It is also important to remember that employees also absorb information in different ways, especially when a multi-generational workforce is involved. Some employees may prefer to take in their information online, while others may desire a book or pamphlet to peruse at their leisure. Providing this information in a variety of mediums will help to ensure financial success.
Employers should also encourage employees to create a monthly budget, which is a critical step in the path toward financial success. There are a number of online financial tools and calculators that can assist employees to establish—and adhere to—a monthly budget. Employees can track monthly spending and readily identify where they can save money.
Another way to encourage employee financial health is to offer tax advantage products. For example, Health Savings Accounts (HSAs) can be used to invest in an employee’s future. Monies set aside in an HSA can be reserved for medical expenses incurred in retirement. HSA contributions grow, compound, and are invested as one would do with a retirement account, if the employee pays medical expenses out of pocket.
Finally, employers should provide employees with personalized support. Financial wellness is definitely not a one-size-fits-all endeavor; and as such, it is important to tailor recommendations to each employee’s specific situation. Have a financial expert on-hand to address employee questions and concerns and to provide assistance in navigating complex financial matters.