Employers are starting to expand their benefits beyond health insurance and retirement, but many still haven’t created benefits for employees dealing with personal debt. Adding debt-related benefits to your package can help you attract and maintain the strong workforce you need.
What Are Employee Debt Solutions?
Employee debt solutions are any benefits that help your employees ease the stress of their financial burdens. Employees may have credit card debt, medical bills, or student loans that are weighing on them. Benefits can include debt consolidation, student loan repayment programs, emergency grant funds, and more.
Why Workers Need Employee Debt Solutions in 2023
Debt solutions are a huge benefit to your employees and your business as a whole. Providing employees peace of mind and easing their financial worries creates a more productive and positive work environment.
When employees know their employer is taking care of them, they are more likely to stay at the company longer.
Employees Are Stressed About Finances
In today’s world, many people are worried about finances due to the rising cost of living. Even relatively well-paid employees may be living paycheck to paycheck or struggling to cover their basic costs. People may get into debt for all sorts of reasons, leaving them stressed when they come to work each day.
According to a survey from Financial Health Network, nearly half of the respondents reported being unable to pay all their bills on time in the last 12 months. Half reported that debt is a source of stress, and they spent at least an hour per week dealing with debt-related issues in the past month.
Having the right mix of finance-related benefits can help you reduce your employees’ stress and maybe even improve overall wellness at your company. 63% of respondents said that having debt-related benefits would reduce their stress, and 68% said that these benefits are important for an employer to offer.
Other Employers Aren’t Offering Employee Debt Solutions… Yet
Adding this benefit to your package of offerings could be the deciding factor for your applicants. Many employers aren’t offering debt solutions in their lineup, so being an early adopter will help you stand out to job applicants in 2023.
It’s time to offer more than the standard health insurance and retirement savings programs. Adding debt-related benefits can help you stand out and show employees you care.
How Offering Employee Debt Solutions Would Help Your Company
Some employees who are struggling financially end up using work time to manage their debt load. This benefit eases your employees’ worries and may also add more productive work time back to your team.
Even if employees are not dealing with their finances during their work hours, their debt still adds to their stress levels. That stress can affect their work and their attitude during the workday.
Debt, including student loan debt, prevents millions of employees from accessing the opportunities and freedoms that wealth provides. We can help you set up effective, innovative services that help employees reduce or get rid of debt so they can pursue new possibilities and a brighter future.
What Employees Want
Employees don’t want just any kind of debt solution, and they may have concerns about some programs. Here’s what they’re looking for:
Employees have reported that they don’t want their employer to know how far in debt they are. They worry about what their employer will think if they know, so confidentiality is a strong desire. Make it a priority to let employees know their information is secure and their managers won’t know the details.
Employees need to know how to access their benefits. It shouldn’t be difficult for them to figure out how to participate. Simple access is important for employees looking to ease the stress of their debt-related issues.
No matter how easy it is to access your debt solutions, some employees are bound to have trouble. They may have unique problems or concerns. Make sure you offer personalized support and help.
Clear Explanation of Benefits
Being clear and concise about what you offer saves employees the struggle of determining if the benefits will help them. Be detailed in what is available in the benefits section of your job listings, and let your employees know they can ask questions.
Other Benefits That Can Help Employees With Their Finances
Financial assistance doesn’t have to be in the form of debt solutions only. There are several other forms of benefits employers can provide to their teams.
In today’s world, most employees aren’t saving enough for their retirement. The cost of living is always on the rise, and people tend to spend their earnings now rather than think of the future.
Financial advisors often say employees should put 12-15% of their income toward retirement. But many people struggle to save that much, especially if the money doesn’t come out of their paychecks automatically.
According to the U.S. 2020 Census, only 58.1% of baby boomers (ages 56-64) owned any kind of retirement account, Gen X (ages 40-55) reported 56.1%, and millennials (ages 24-39) were at less than half. People are much more likely to have an account if their employer offers a retirement plan program. Retirement plan benefits are very valuable to your employees.
Financial Literacy Workshops
Another barrier employees face when planning to save for retirement is that they don’t have all the information they need. Many people never learned how to save money, plan for the future, or participate in investment plans. Financial literacy workshops are an excellent offer for employees who need more knowledge about retirement plans.
Financial literacy workshops can cover a wide variety of subjects your employees will value. If they attend the workshops, they can learn about budgeting, investing, financial planning, and more. The workshops will give them the tools to make informed decisions about their current and future finances.
Offering a retirement plan isn’t enough for your employees to get on track for their financial future. By teaching the right information, a financial literacy workshop can make all the difference in your employees’ decisions on investing and saving.
LG Resources Can Help You Set Up Employee Debt Solutions
Recruiting great talent for your team starts with attractive benefits. The job market is seeing an increase in applicants in 2023, and having a solid package of benefits will set your company apart from others when potential employees are searching.
Offering employee debt solutions can help you attract and retain employees, so give us a call today. We can tell you more about how this benefit will help your employees and your company.