Employers were challenged when it came to hiring qualified candidates in 2021, and industry experts believe that these difficulties may persist. A report published by Glassdoor noted that the economy does not show signs of a quick return, which means that companies will continue to struggle to bring workers back.
The market is flooded with jobs, and workers largely have the choice of where and how they want to apply their talents. Considering the continued economic pressure of the coronavirus pandemic, this situation is not likely to change any time soon. In this new environment, companies must focus on how they can attract and retain employees. Some industry experts believe that one of the deciding factors will be how companies integrate personal finance offerings into the employee experience.
The Financial Impact of the Pandemic on Individual Employees
The economic impact of the pandemic affects not just companies, but also their employees. This realization can help companies create an attractive environment for workers. For instance, providing financial help and support to employees will help alleviate some of the stress caused by personal finance issues and free employees to focus on their jobs.
A 2021 survey found that more than 60 percent of workers in the United States reported an increase in financial stress since the start of the pandemic. With inflation reaching record highs and driving up the cost of everyday goods, families may struggle even more to make ends meet in 2022, which is why personal finance interventions are so important.
Another issue to consider is that many of the temporary supports generated at the federal level to alleviate financial stress will likely end in 2022. For example, the government paused student loan repayments in 2021. While the date for paying these loans was postponed in early 2022, they will likely come due in late 2022. As a result, workers will need to readjust their budgets and seek out new ways of saving while, at the same time, their monthly expenses increase. Companies can support employees in this process with programs meant to help guide them through this process, as well as general initiatives to increase financial literacy.
The Potential for Addressing Personal Finances at Work
For some people, the thought of employers providing this sort of support may seem strange or overstepping. However, most employees desire this type of support. In the 2021 survey mentioned, more than 70 percent of employees who said their financial stress had increased during the pandemic also said they would consider working for a different company that demonstrated a stronger concern for their financial wellbeing.
Employers also feel this pressure. The 2021 annual Workplace Benefits Reports from Bank of America found that 95 percent of employers feel a sense of responsibility for employee financial wellness. Also, more than half of employers point out that providing financial wellness offerings leads to productivity increases. This makes sense, as reduced financial stress allows people to concentrate fully on their jobs.
How Companies Can Offer Personal Finance Support
One way for companies to promote financial wellbeing is to offer inclusive benefits. For a long time, salaries and sign-on bonuses were the primary way for companies to attract new employees. However, there is a cap to how much companies can spend to hire someone. Beyond that point, benefits are what really set companies apart from other potential employers.
Benefits are a cost-effective way of improving the employee experience and driving retention. Inclusive benefits go beyond the typical offerings of 401(k) plans and health insurance. Through inclusive benefits, companies promote employee wellbeing with programs ranging from free financial counseling to discounted gym memberships. The possibilities for these types of programs are quite expansive.
Companies that want to implement these inclusive benefits to address the financial wellbeing of their employees—and make their workplaces more appealing to potential hires—should begin by talking to their current workers. By asking workers what kind of support would benefit them, companies create an environment that helps retain employees. Fortunately, the same initiatives that drive retention are those that will help with recruitment.
Asking employees directly shows that the company values their opinion and does not want to be prescriptive when it comes to providing inclusive benefits. Moving forward, personal finance will likely become much more integrated into individual workplaces.