Caregivers

Why Benefits for Employee Caregivers Are Good Business

We’ve all seen alarming headlines about “The Great Resignation.” Some observers say it shows no signs of letting up. McKinsey recently called it the “quitting trend that just won’t quit.” And data confirms that the “big quit” is real.

In May, the Bureau of Labor Statistics reported that the U.S. voluntary quit rate was 25% higher than pre-pandemic levels. It’s hard to ignore numbers like that. And chances are you’ve experienced this recently in your own organization, as more top performers leave for various reasons.

What’s behind this surge in turnover? The pandemic forced us all to reevaluate what’s most important in life. Now, many are choosing to be more present for family while also juggling a demanding career. But the choice is especially challenging for those with family members who need special care.

This segment of the workforce is larger than you may think. In fact, according to the Rosalynn Carter Institute for Caregivers, 1 in 5 American workers also double as an unpaid family caregiver for an aging, ill or disabled loved one. The amount of time they spend on caregiving, in addition to their full-time careers, isn’t trivial. The AARP estimates that these caregivers devote an average of 23.7 hours a week to these tasks.

Therefore, it’s not surprising that employee caregivers are struggling mentally, physically, and financially. Nearly 60% are dealing with clinical depression and anxiety. Experts say they are stretched so thin that the snowball effect of caregiving will cause 1 in 3 to leave the workforce entirely.

New Insights About Employees as Caregivers

A new study entitled Following The Journey of Family Caregivers” commissioned by Homethrive, Home Instead, and Certification in Long-Term Care (CLTC) sheds more light on how employee caregivers are responding to the pressure.

Nearly 70% of survey respondents who identify as employed said it has been important to rely on paid in-home care because it helps them avoid leaving their job, or because it helps them concentrate better at work.

“I wasn’t surprised to hear (working caregivers) turning more to paid care,” says Eileen J. Tell, a Boston-area researcher who administered the survey. “They cited the importance of doing well at their job and the desire to maintain their job.”

It’s no wonder why working caregivers said they need paid assistance. For example:

  • 35% often provide companionship
  • 33% often provide transportation help
  • 26% often help with daily living activities
  • 23% often help arrange care
  • 26% often help make care decisions
  • 31% always help make home safety changes

Respondents also said if they received help coordinating care, it would take a major load off their already piled-high plates. Specifically:

  • 42% want coordination with doctors or care teams
  • 38% want assistance in finding service providers
  • 34% want help finding benefits eligibility
  • 34% want meal delivery coordination
  • 32% want recommendations for devices and equipment
  • 31% want help assessing home safety

Interestingly, the study found that only 6% of working caregivers receive support from an employer-provided benefit program to help find reliable paid in-home care for loved ones.

What about the other 94% without access to employee caregiving benefits? There is good news. An increasing number of forward-thinking employers are offering these unsung heroes benefits packages that include family caregiving options.

Why is this a wise choice? Employers gain in multiple ways. For example…

Business Benefits of Supporting Employee Caregivers

1. Restore Retention

When employees have an option to access the right kind of assistance, when they need it, they’re less likely to leave. They’re also more focused and productive at work. Offering this benefit can position you as an employer who cares about worker wellbeing on all levels—which in turn fosters a sense of company loyalty.

2. Rev-Up Recruitment

You want to attract the best employees possible. Offering a family caregiving benefit is one way to excel at recruiting because your company will appeal to candidates who value an employer with compassion, a concern for families, and a sense of community.

3. Improve Employee Wellbeing

According to Mercer’s 2022 Global Talent Trends study, employee wellbeing programs are among the top five reasons why people remain at a company. Caregiving can be a time-consuming and emotionally draining responsibility. A family caregiving benefit helps take some of this burden off your employees and improves their wellbeing.

4. Increase Productivity

Time is money. And caregiving can take up a lot of time.

One employee might spend hours on the phone setting up doctor appointments for an aging parent, while another might leave work frequently to take a special needs child to therapy.

It all takes time away from the workday, decreases productivity, and increases employee stress. But with a family caregiving benefit, employees and their loved ones will receive higher quality support when it matters most, so your business productivity will flourish.

5. Revolutionize Work-Life Balance

A family caregiving benefit can drastically improve work-life balance. When employees continually put others’ care ahead of self-care, it can translate into mental and physical health issues such as exhaustion, depression, and anxiety. Those issues inflate your company’s healthcare costs.

When a caregiver’s mindset has shifted to a “life-work tilt,” career advancement, salary increases, and professional praise are important. But quality time with loved ones, the opportunity to explore passions outside of work, and overall mental wellbeing are also critical.

Leaning into this “life-work tilt” can have multiple advantages. By proactively acknowledging the needs and responsibilities of family caregivers and offering tangible support, you can set your organization apart. And when your employees find a better balance between work and life, they can focus better, be more productive, and stay loyal to your company.

6. Protect Your Bottom Line

High turnover is expensive. The cost often extends beyond investing in recruitment to replace lost workers. For example, institutional knowledge and team morale also suffer. In addition, productivity can take a hit, which in turn, can reduce innovation and growth. Ultimately, this negative spiral can prevent your company from reaching its full potential. 

A Solution That Helps Employees and Employers

Family caregiving benefits are a win-win.

They’re a win for employers because they help improve workforce wellbeing, retention, and productivityall while protecting your bottom line.

They’re also a win for employees because they help support work-life balance, mental health, and job satisfaction. 

As Eileen Tell explains, “I think it’s key that employers understand how important it is to family caregivers to feel like they don’t have to choose between their jobs and their role as a family caregiver. Employees may look like they’re not paying attention to work, but they really don’t want to compromise their job and they don’t want to skimp on their family responsibilities.”

earned wage access

The Benefits of Earned Wage Access for Employees

Sponsored by: ADP

Financial stress is a real employee concern these days. Prices are higher across the board – gas, food, housing. There is also a looming recession on the horizon. So how can employers help alleviate some of this stress?

As the modern workplace continues to evolve, so should the ways employees get paid. Many employers are now offering employees the option to access their wages at much-needed times through Earned Wage Access (EWA) vs. having access to their pay only at the designated pay cycle. This benefit offers employees much-needed financial flexibility and peace of mind. For employers, it can improve employee retention, satisfaction, and productivity by helping employees redirect their mental focus on work rather than financial stresses.

So, it’s really a win-win for both employees and employers. 

Our Guest:  Michelle Young

On this latest episode of #WorkTrends, I spoke with Michelle Young, Vice President of Operations for ADP’s Employee Financial Solutions Group. Michelle is an innovation expert and a trusted advisor to corporate executives in orchestrating business and fiscal strategies with B2B and B2C models.

Let’s talk about financial wellness. A very hot topic right now. Looking at this through the lens of ADP, how do you define financial wellness in the workplace? Michelle:

That’s a great question and very on point right now. When we at ADP think about financial wellness, we immediately go to the source of pay. That’s where we can promote confidence. We can help our employers offer their employees flexible pay methods that are beyond standard pay cycles. Like earned wage access, which, if you haven’t heard, is a very hot topic right now. It really helps to align unexpected expenses with income.

Reducing Employee Financial Stress

Employees can avoid spending money on overdraft fees, late fees, or even payday loans with earned wage access. And that further increases their ability to save and reduce financial stress. 

Sometimes, when unforeseen expenses don’t align with income, such as a medical bill or a home repair, it can make any employee, even financially responsible ones, feel helpless. And that often directly impacts their performance in the workplace.

What is Earned Wage Access?

What can employers offer employees around earned waged access? Or, EWA for short. Let’s talk more about what EWA actually is and how it works.

Promoting financial wellness ties to our EWA story. So EWA earned wage access is a valuable financial wellness benefit that allows employees to access a portion of their income that they’ve already earned. As opposed to waiting until the next pay cycle.

How Are Employees Using Earned Wage Access?

Employees use their earned wages in various ways, varying by demographic and age segment. 

Employees ages 18 to 24 tend to use it to reduce the stress of not having enough cash until payday. Maybe to buy groceries, pay off a loan, or even rent. As we move up, the 25 to 44-year-olds typically use it for family-related expenses or to pay bills. The 45 to 64-year-olds are also using EWA for emergency-related expenses or paying bills and use it for an emergency medical expense, which typically impacts the Gen Xers and the Boomers with more frequency.

ADP Research Key Takeaways

There were a lot of really juicy findings in the ADP Earned Wage Access Research Study done in December 2021 to January 2021 timeframe, What are some key takeaways? 

There is broad interest in EWA from workers in every age group, every education level. Seventy-six percent of workers across all age groups say it’s important for their employer to offer it. And 82% of employers that don’t offer it are interested in actually offering it. Additionally, 59% of millennials would give priority to a job with an employer that offers earned wage access. And 75% say that the availability of VWA would, in fact, influence their acceptance of a job offer.

I hope you found this episode of #WorkTrends helpful, I know I did. To learn more about the EWA metrics, download ADP’s latest white paper: “Earned Wage Access: Tapping into the Potential of Flexible Pay for Today’s World of Work”

Subscribe to the #WorkTrends podcast on Apple Podcasts or Stitcher. Be sure to follow our #WorkTrends hashtag on LinkedIn and Facebook, too, for more great conversations!

EWA

Attract and Retain Employees with Earned Wage Access (EWA)

Sponsored by: ADP

Employers are looking for new ways to stand out in terms of employee perks and benefits. One solution: earned wage access (EWA). This is a powerful tool when it comes to meeting today’s employee needs. It’s also got proven advantages when it comes to attracting talent and landing great hires right now.

As a problem solver, EWA covers a lot of ground at a time when anything less than a true game-changer won’t work. Combine a 3.5% unemployment rate, more than half a million jobs added in July 2022, the continuing Great Realignment, and troubling inflation, and you’ve got a perfect storm facing employers. Talent strategy right now is a double-edged sword. You can’t just recruit, and you can’t just retain. You need to do both to stay competitive as an organization. That means successfully addressing employee as well as recruitment pain points.

Employees Coming Up Short

From a workforce perspective, financial anxieties are weighing heavier than ever for countless employees. A recent PwC financial wellness survey of more than 3,000 employees across several industries found that just 42% felt their compensation was keeping up with the rising cost of living expenses in 2022 — down from 52% in 2021. Further, 56% of all employees are stressed about their finances.

What that means in practical terms is that for most, access to pay can make a key difference. Research by ADP  on earned wage access benefits in today’s world of work found that 69% of employees are likely to request their wages early at least once within the next year. Requesting wages early is prevalent for a clear majority of Gen Z and Millennial employees. But, this is also true for nearly half of older employees as well:

  • Gen Z (18-24) 74%
  • Millennials (25-44) 86%
  • Baby Boomers (45-64) 48%

Here’s the question: What happens if an organization doesn’t have a system in place to grant such a request? In terms of well-being, it will add to the financial stress already affecting employees — and that can have all sorts of consequences. The PwC study’s respondents said financial stress took a severe to major toll on their mental health (34%), sleep (33%), self-esteem (30%), physical health (23%), and relationships at home (21%). Additionally, 18% said financial stress interfered with their ability to be productive at work. 15% said it directly affected their ability to go to work at all.

Employee Stress = Organizational Stress

It’s not hard to connect the dots between financial stress and organizational stress. An organization that lacks a policy and/or system for early wage access could be conducting a not-so-subtle form of self-sabotage even in terms of operational success. In terms of employer reputation, it’s even clearer. Employees want to work for an organization that clearly cares about their well-being — including their financial well-being.

The PwC survey found that 76% of financially stressed employees are likely to look elsewhere for an employer who cares, versus 38% who aren’t financially stressed. To put it bluntly, financially stressed employees are twice as likely to search for a better employer. By inference, then, if you’ve got a skittish, stressed-out workforce and no means to ease their financial stress, you’re twice as likely to lose talent to someone who has the means in place. And what about landing new hires in the first place? ADP research found that over 90% of employers (all with more than 1,000 employees) who offer EWA find that it improves their employees’ sense of financial security and helps with both talent attraction and retention.

EWA as a Solution: Best Practices

Earned wage access is both a digital innovation and a well-being booster — and its time has come. It fits into the framework of modern employee expectations in a range of ways. It pragmatically demonstrates that the employer values employee needs, and it solves a very human conundrum with a practical digital tool. Additionally, it breaks the mold of traditional talent management for a more innovative, flexible approach. But like any innovation, there are strategies that will leverage its full potential and strategies that won’t.

Here are four important best practices when it comes to incorporating EWA into your organization:

  1. Consider EWA from a business standpoint: A well-designed, modern EWA program offers an inarguable business advantage. Recent ADP research on earned wage access benefits surveyed 500 companies with more than 150 employees and found that 95% believe that employee financial wellness impacts their company. Suppose EWA is provided as a system that offers a simple, self-driven, well-documented means to access pay early. In that case, it can offset a myriad of problems, from employee-manager friction to accounting snafus to attrition.
  1. Integrate EWA into existing compensation and payroll processes: Rather than a bolt-on solution that’s isolated in terms of data, record-keeping, and information systems, EWA should be interconnected with the processes already in place. Ad-hoc doesn’t have to mean anarchy. EWA is best when it keeps pay administration both simple and cost-effective. Offering employees flexibility and choice that doesn’t complicate the process. Employees should be able to access their wages without disrupting the integrity of the payroll cycle.
  1. Provide employees and managers with the features that count: For employees, that could mean easy enrollment, a straightforward, anytime, mobile-friendly platform, fast access to pay, clear visibility into pay balances, and electronic pay.
  1. Don’t be shy about informing your workforce: Companies that offer EWA are staying on the leading edge of digital transformation. They’re also demonstrating an evolved approach to compensation. But competitive pay doesn’t just mean the highest salary in a given role in a given industry. It means a flexible, responsive compensation program that eases minds. As far as retention, that’s going to have a big impact:  93% of employers believe that offering EWA helps boost employee retention. But unless you broadcast the policy, employees and new hires won’t know it. Given all the pressures we’re under, it’s not a time to be quiet about modernizing your employee perks.

Empathy as an Organizational Benefit

With more employees than ever living paycheck to paycheck, earned wage access enables your employees to avoid the friction (and stress) around having to ask a manager for an advance on pay or take out a high-interest loan to tackle an unexpected financial burden. It also takes managers out of the hot seat by providing a built-in, integrated process.   

No question: digital innovations are pushing the envelope on how we work, evolving traditional structures like workspace and compensation into more people-centric approaches and offering new solutions to a range of challenges. But rising to the occasion and leveraging these new tools is up to the organization. A digital EWA platform offers a means to address a very human need. It’s a clear example of empathetic people management — and it could be the competitive edge in terms of talent.

To learn more about EWA, ADP is hosting a webinar on “Offering Earned Wage Access: Strategic & Compliance Considerations”, Thursday, September 8, 2022, 2p Eastern. Register Here!

Caregiving

Planning for Caregiving – How Employers Can Help

We must plan for caregiving instead of waiting for the medical crisis. Lack of planning is sadly the typical scenario for the vast majority of working families with aging relatives. Too many barriers exist when it comes to planning for caregiving. Such barriers include lack of knowledge, time, and procrastination. Ultimately, lack of preparation inevitably results in premature exit from the workforce. This is a costly scenario for the employee as well as the employer.

As part of a comprehensive benefits plan, employers can help educate future caregiver employees as to how to initiate the conversation and set up planning. Such a setup may vastly change the landscape around employees’ ability to remain in the workplace as they take on a caregiving role. The point of this article, therefore, is a wake-up call to the employer as well as the future caregiver employee.

Preparation for Caregiving

It is wonderful to think that people today have a good chance of living well beyond their 70s. However, with rising age comes increasing disabilities (1), and thus, the need for supportive care. In my profession as an eldercare consultant, I have come to realize that the vast majority of people take on caregiving responsibilities with little or no preparation; this is indeed the typical scenario for caregivers (2).

Unfortunately, it is human nature to wait till the last moment before we take action, especially with issues that are difficult to solve. In the caregiving world, people often do not learn about the many resources and services available until after the medical crisis occurs. Why do we procrastinate when it comes to planning for caregiving? There are many reasons: lack of time in our busy working lives, lack of knowledge, lack of confidence, and stressful family dynamics. However, lack of preparation around caregiving can lead to wide-ranging negative outcomes for the caregiver (3\4).

Planning for the Future of Caregiving

We plan our financial future; so why don’t we plan for caregiving? This should be a no-brainer, as lack of preparation can have a negative impact on so many aspects of our lives including deteriorating mental and physical health, loss of social connections, and reduced or lost income. For example, caregivers are more likely to experience stress, anxiety, irritability, hopelessness, and depression, as well as have coexisting substance abuse or dependence, and chronic disease (5/6). Furthermore, studies have shown that caregivers (age 50+) who leave the workforce to care for a parent lose, on average, nearly $304,000 in wages and benefits over their lifetime, and are at increased risk of living in poverty in their own old age (7).

Programmatic Solutions in the Workplace

The rationale for why we should plan for caregiving is clear. Yet, we don’t. I would argue that much of the fault lies in that structurally our society is not set up to support proactive caregiving. A key area where programmatic solutions could be developed exists within the workplace. The workplace employs many people who fall into the sandwich generation; that is, those sandwiched between children and aging parents. Even though many mid-size to larger companies provide eldercare services as part of their Employment Assistance Programs (EAPs), these do not promote proactive planning for caregiving.

EAPs cater to the employee who is in crisis mode. Instead, workplaces should do more to promote proactive planning for caregiving when the employee is not under duress. This could be done through educational ‘lunch and learns’ provided to employees where they may gain knowledge about warning signs of when it is time to step in, learn ways to initiate the conversation, and how to find resources in their community. Educating the sandwich generation workforce is a win-win scenario for the employee as well as the employer by diminishing disruption in the workplace because employees will be much more prepared for caregiving. 

Final Thoughts

The workplace captures a huge audience of future caregivers. This is a vital consideration as we are facing a looming shortage of caregivers as the large baby boomer cohort ages (8). We must start to implement structural changes within our society that can support caregiving in the same way that daycare was implemented to support working mothers! The programmatic solutions described in this article are relatively inexpensive and empower the family to make decisions that may better meet the wishes and needs of the care recipient. Ultimately, by planning for caregiving we may better promote the autonomy and the dignity of our loved ones.

1 Aubrecht, K., Kelly, C. & Rice, C. (2020). The aging-disability nexus. University of British Columbia Press.
2 Alvariza, A., Häger-Tibell, L., Holm, M. et al. Increasing preparedness for caregiving and death in family caregivers of patients with severe illness who are cared for at home – study protocol for a web-based intervention. BMC Palliat Care 19, 33 (2020). https://doi.org/10.1186/s12904-020-0530-6
3 Sung S Park, PhD, Caregivers’ Mental Health and Somatic Symptoms During COVID-19, The Journals of Gerontology: Series B, Volume 76, Issue 4, April 2021, Pages e235 – e240, https://doi.org/10.1093/geronb/gbaa121
4 Broxson J, Feliciano L. Understanding the Impacts of Caregiver Stress. Prof Case Manag. 2020 Jul/Aug;25(4):213-219. doi: 10.1097/NCM.0000000000000414. PMID: 32453176.
5  Chang, H. Y., Chiou, C. J., & Chen, N. S. (2010). Impact of mental health and caregiver burden on family caregivers’ physical health. Archives of gerontology and geriatrics50(3), 267–271. https://doi.org/10.1016/j.archger.2009.04.006
6 Lena Sandin Wranker, Sölve Elmståhl & Fagerström Cecilia (2021) The Health of Older Family Caregivers – A 6-Year Follow-up, Journal of Gerontological Social Work, 64:2, 190-207, DOI: 10.1080/01634372.2020.1843098
7 Feinberg, L & Choula, R. (2012): Understanding the impact of caregiving on work. (AARP Fact Sheet).
8.Feinberg, L.F. & Spillman, B.C. (2019). Shifts in family caregiving – and a growing care gap: Implications for long term services and supports financial reform. Generations: J Am Society on Aging, 43, 1, 73-77.
Open Enrollment

4 Steps to Hit the Mark for Open Enrollment

Is the benefits information you have to tell employees important before and during Open Enrollment? You bet! Easily understood? Not always. 

According to the latest MetLife employee benefits trends, close to 90% of employers believe their benefits are clear and easy to understand. Yet only 65% of employees (only 56% Gen Z) agree. 

Uncomplicating the complicated is not an easy task, but it’s well worth the effort. Employees who better understand their benefits are ones who better appreciate the benefits they have. 

Let’s look at 4 steps to help supercharge your Open Enrollment communications strategy.

Step 1: Know Your Audience

For HR, this means not just thinking about employees. Think like employees. Heck, you are an employee.

When Open Enrollment season hits, chances are you’ll be making some decisions about your benefits. Just like all the other employees. What (and who) are you thinking about when you’re comparing options? Your family? Your health? The costs? The coverage? Yep…just like all the other employees.

If you can hold on to that “employee to employee” connection when you’re communicating to them about benefits, you’re more likely to create understandable, compelling communications. Make your messages relatable and relevant, with a hint of emotion.

Relatable – We’re all people. We can empathize with each other. Remember this when you communicate to employees. Make an emotional connection. That’s how you get employees to engage.

What does that mean? For example, many employees have families they love, and so do you. And you all want the best benefits you can get for them. Relay that feeling.

Relevant – Present information from the employees’ points of view, not the company’s. Avoid touting your company’s awesomeness (“We’ve added a great new dental plan”). Talk more about why it matters to them (“You have more dentists to choose from in the new plan”). Instead of saying, “We have a new enrollment system,” say, “You can enroll faster and easier with our new enrollment system.”

Keep the message conversational, too. If you were talking to a colleague, how would you get your message across? Probably not in a verbose, run-on sentence with oodles of detail. 

Step 2: Plan Bite-Size Information

If you’re sending a firehose flow of information two weeks prior to Open Enrollment, employees will not absorb everything you’re telling them. Try starting communications about six to eight weeks prior to your OE start date, especially if you’re making major changes

Strive for a slow drip campaign that feeds bite-size bits of information. A sample campaign for a late October enrollment may look like this…

Late August

  • Teaser/kick-off announcements
  • Watch for what’s to come messaging
  • Training webinar for leaders and HR partners

September

  • Weekly or bi-weekly communications with chunks of information
  • Home mailer with highlights and a few important details
  • Portal/website or interactive guide with a deeper dive into info, tools, and resources

Mid-October

  • Meetings, webinars, and benefits sessions
  • Displays for enrollment to-do’s and timing
  • Weekly reminders to enroll (first day, one week left, last day)

To get the word out, a wide variety of channels is best. But when it comes to education, a Colonial Life Employee Enrollment Survey (via Unum) shows how employees rank their three top choices: benefits portal or website, in-person counseling session, or printed materials.

Step 3: Stay on Point!

When you start crafting your Open Enrollment communications this year, remember that employees:

  • Check their phones 150 times a day
  • Check email 30 times an hour
  • And are still trying to do their jobs

Competition for their attention is fierce. How do you break through the distractions, buzzing and beeping all around them? 

Diligently.

You must spend time considering the message you’re putting out there. Is it going to drive the results you’re hoping for? The key is to build messaging super-focused on achieving that objective. Avoid filling headspace or airwaves with any other content — stick to information employees need to know to make the decision at hand.

Also, our brains don’t want to work hard at processing information. Keep content easy-to-read and scannable. 

  • Short sentences (14 words or less)
  • Short paragraphs (3 sentences or less) 
  • Eighth-grade reading level
  • “Chunked-out” content with subheads (bite-size)
  • Lots of “you” and “your” and less “we”
  • Human language — no acronyms and other benefit geek speak

Don’t be afraid to use phrases and incomplete sentences. No, really. (See what we did there?) It goes against everything you learned in grammar class but write like you talk. Employees will trust it more, as they read it like a conversation.

One last trick — after you’ve created your first draft, cut the amount of text in half. Get rid of any sentences that are repetitive or words that don’t help employees understand your message.

It may be interesting, amusing, or truly relevant, but if it’s not essential, it’s just brain clutter.

Step 4: Don’t Bury the Bad News

They may not like bad news — but they’ll like it even less when they find it hidden among other news. Employees are adults. They can adapt to change if you’re upfront, honest, and help them through it.

Rip off the band-aid. Give them the “why” of the situation through consistent and continuous communications.

  • Tell the same story, the same way, and tell it often
  • Provide a specific date when they’ll know more
  • Be honest and open (or transparent if you speak HR)

Are rates increasing? Probably because the company’s costs keep increasing. Explain that to employees. “U.S. health care costs are expected to rise 10-15 percent this year, but we’re keeping your increase lower, at only 6 percent.”

It’s Time to Change Things Up

HR professionals tend to be criticized for overexplaining and using confusing terms that make benefits hard to understand. We know why that happens, and we get it. 

Put in the work now so you can achieve effective, results-generating communications. Communications that have higher employee engagement. But put yourself in employee shoes when you communicate. Wait…you’re wearing employee shoes.

Financial Health

Minimize Worry and Maximize Employee Financial Health

Sponsored by: Nationwide

With 2022 shaping up to be much more economically challenging for many people, more so than in 2021, folks are doing what they can to get by. A recent study performed by Nationwide said that a whopping 90% of consumers are concerned about inflation and their financial health. Do you blame them? 

Some employees are even starting to reduce their 401(k) plan contributions. The economic downturn has employees feeling worried and insecure – rightfully so.

Another study I just read shows that 70% of employees believe they need help from employers to achieve long-term financial security. Employers and employees may not realize all the tools available to help promote financial wellness and help to alleviate worry and insecurity.

Let’s look at some ways organizations and individuals can ease their worries about retirement plans and lifelong financial health.

Are you ready to help your employees thrive?

Our Guest: Amelia Dunlap

On our latest #WorkTrends Podcast, I spoke to Amelia Dunlap, Vice President of Retirement Solutions Marketing at Nationwide. Her focus is on solving the complex challenges of the financial services industry. She leads retirement solutions and marketing and is responsible for connecting with participants to plan for and live in retirement. She says:

Many people may not realize the full scope of what Nationwide does and that they offer much more than just home and auto insurance.

The Big Picture

We need to focus beyond the here and now. While many people know they have to save as much as possible for retirement, they are often unsure of what retirement will look like when it comes. About one in five people are delaying their retirement date because they feel insecure about how much income they will need to live on comfortably.

Amelia shares some solutions from Nationwide, such as in-plan guarantees, a way to put money into an investment that guarantees retirement income. A recent macrotrend related to pensions should be of some concern:

Rewind decades ago, a lot of companies had pensions for those of us in the corporate or private sector. That provided you, as an employee, with a paycheck in retirement. Well, throughout the past number of years, pensions have started to reduce. That ownership of preparing for your retirement and living in retirement has transitioned from a company providing it to an individual’s responsibility. That’s what a 401(k) is.

The Future of Retirement

 Economic security is of great concern for everybody, whether nearing retirement or just entering the workforce. There may be legislation from Capitol Hill that could help here, but in the nearer term, there are options and ways to educate younger generations. 

We in the industry often say, “If only everyone knew that your retirement plan is the best option for saving that you’re going to have.” It gives you the most access to investments. It’s the lowest cost. If you have a retirement plan, you should absolutely be taking advantage of it. We in the industry know that. Unfortunately, I don’t know if that is always effectively communicated to employers and ultimately to employees.

Educating younger workers on the benefits of investing earlier in their careers can make a huge difference. 

Lessons Learned

The turbulence in the last year has been a wake-up call for many people who had previously been in a stretch where things had been just ticking along well for a number of years. So what have we learned? 

This really underscores the need for employees to understand that adversity is going to happen and that you need to be thinking about your financial wellness plans long term. Putting your money in your retirement plan, continuing to save, and diversifying your investments are all good keywords you hear. Right now is a really unique time for employers because they’ve got the attention of their employees.

I hope you found this episode of #WorkTrends helpful and inspirational. To learn more about employer-sponsored retirement programs and the changes needed to help secure employee financial wellness, visit Nationwide.

Subscribe to the #WorkTrends podcast on Apple Podcasts or Stitcher. Be sure to follow our #WorkTrends hashtag on LinkedIn and Facebook, too, for more great conversations!

Boost Your Benefits Package

How to Decentralize Corporate Charity and Boost Your Benefits Package

Benefits are one of the key pillars of good employee retention. According to data compiled by LinkedIn in 2020, “better compensation and benefits” was one of the top three reasons that both Millennials and Gen Xers left their jobs.

This means you can’t just put together a run-of-the-mill benefits package and expect it to be a talent retention tool. On the contrary, sub-par or even adequate benefits are going to be a turn-off in a market where quality talent is at a premium.

This focus on good benefits has made reviewing and expanding your benefits package beyond the basics an essential strategy moving forward.

The Need to Review Your Benefits Package

If you’ve left your benefits package on autopilot in recent years, it’s time to give it a once-over. What’s more, employers can’t just select basic items anymore.

According to the Bureau of Labor Statistics, as recently as March of 2021, the majority of workers with access to employer-sponsored benefits had many of the basics already available. BLS reported that staples such as paid sick leave, unpaid family leave, and paid vacations were par for the course for most benefits packages.

For employers, this means offering competitive health care benefits, matching 401(k) contributions, and providing generous PTO isn’t enough anymore. 

While these are good starting points, it has become essential for employers to put additional effort into crafting their benefits packages. They need to go beyond the generic and tailor the combination to the needs of their workers. 

For instance, HBR reports that the most desirable employee benefits go well beyond retirement accounts and health insurance. Two decades into the 21st century, employees are also looking for things like work-life balance, flexible work hours, and work-from-home options. Often these perks will give a job the edge over higher-paying jobs with less attractive benefits packages.

Of course, post-pandemic, many work-from-home benefits have also become normalized. This means employers need to look even farther if they’re going to find benefits that truly help them stand apart. 

One way to do that which can resonate with the politically active, socially aware younger generation of workers is to include a way to give targeted donations.

Business institutions often include philanthropy as part of their operations. In most cases, though, they do this through clunky corporate foundations that are rife with inefficiencies. Focussing on philanthropy can improve employee experience and retention.

Should You Consider Philanthropy-as-a-Service?

Giving platform Groundswell defines the PhaaS or “philanthropy-as-a-service” model as charitable giving that “experiences near-constant innovation as a purpose-built, third-party software company researches, designs, builds, and launches new tools to corporate, individual, and nonprofit customers.”

In other words, PhaaS does for philanthropy what SaaS does for technology. 

To use the latter as an example, SaaS companies have streamlined the complexities of creating tech solutions in-house. While IT departments are still needed, nowadays, they typically manage a growing tech stack of third-party SaaS tools that make their jobs much easier. 

Off-site entities manage, update, and perfect these tools. They are then offered to end-users at a transparent cost that eliminates the need for excessive hands-on tampering.

In the same way, PhaaS can take the extremely complex business of corporate philanthropy and streamline it off-site. This takes the legal, technological, and logistical responsibilities off of the shoulders of corporate foundations.

PhaaS platforms also have the power of allowing businesses to distribute the responsibility of choosing where charitable funds should go. Businesses using a PhaaS tool can let individual employees donate to the targeted charities that they choose. 

Often all that’s required from an employee is to download an app, log in, and make a few selections.  Before they know it, their charitable preferences are official. This offers many different benefits, including:

  • Removing the overhead cost of running a foundation
  • Funneling more funds toward charities in an efficient, data-driven manner
  • Decentralizing the donation process and empowering employees to have a hand in choosing what organizations their company supports
  • Enabling individuals to support charities in perpetuity

This spreading out of the wealth and decision-making power, in effect, turns corporate philanthropy into an employee-driven benefit.

Spicing Up Your Benefits Package With Targeted Giving

Benefits packages are a key element of any retention strategy. Along with compensation, a good set of benefits can send a message that you care about the well-being of your employees. 

At the same time, a careless, sub-par, or outdated package can become a liability. It can make it much easier for competitors to lure employees away with the promise of a more compassionate set of benefits that will meet their needs.

If you haven’t reviewed your benefits package in a while, it’s time to do so. Don’t wait. Start by making sure that basic building blocks like PTO and a 401(k) are available and up to date. Also, address more modern considerations, such as work-from-home and flexible work options.

From there, consider adding something like targeted giving as a CSR-inspired perk. Invite your employees in on your brand’s philanthropic efforts. This can have the effect of cultivating happier workers who feel invested in their employer and proud of the charitable work that their workplace supports.

Mental Health

10 Ideas To Make Mental Health Support More Accessible For Employees

What are some ideas to make mental health support more accessible to employees? This question was posed to a group of talented professionals for their insights. From offering mental health holidays to flex work schedules, here’s what they had to say.

Offer Mental Health Days

Mental health Days are meant to be used when you have too much on your mind or when are feeling high levels of stress and anxiety. We can’t pre-plan how we will feel, so it’s important to allow employees to take unplanned days off.  Moreover, it is a great way to track the mental health of your employees. If someone is taking too many “mental health days” then you can reach out and support them! It’s easy to apply and simple, yet so few companies do it!

Annie Chopra, She TheQueen

Take Time to Communicate Benefits

In our brand new research on mental health, we found that employers rated themselves a “C” while the workforce rated employer support for mental health as an “F.” When you get into the data, you see that while companies are trying to make changes, these changes aren’t always felt by the workforce. We have to spend as much time communicating the changes and benefits we offer as we do actually selecting those benefits if we want to see real impact.

Ben Eubanks, Lighthouse Research & Advisory

Provide Health Coaching Sessions

Working with a qualified health & wellness coach has the potential to make a big difference in employees’ work and personal lives.  A health coach is NOT a licensed mental health practitioner. A good health coach IS a trained empathetic listener and motivator who works with people in groups or one-on-one. They help to create and work toward solutions to increase the enjoyment of life and work. 

Employers can offer coaching services onsite or remotely, in groups or individually.  The National Board of Health and Wellness Coaching (NBHWC) certifies coaches who have completed specialized coaching training, demonstrated coaching skills, have experience working with clients, and passed a rigorous exam.

Ronel Kelmen, Attainable Transformation

Include Inspiring and Regenerating PTO Perks

We all understand that employees need sufficient high-quality PTO experiences in order to stay sharp, satisfied, and healthy at work. But what really makes PTO beneficial for our mental health is when that time is also inspiring. 

For example, we offer our employees three fully paid 24-hour days per year to participate in volunteer activities. Not only do these experiences give our team the chance to step outside their work and breathe, but while doing so they’re also engaging in work that can reignite and reshape their worldviews.

Tina Hawk, GoodHire

Promote a Work-Life Balance

Make sure your employees are taking time away from work on a regular basis. This means encouraging regularly scheduled vacations and not rewarding a burning the midnight oil mentality. You may get short-term results, but this type of schedule will often lead to burnout and far less productivity and motivation. 

A great leader challenges their employees to regularly rest, recharge, and connect with their loved ones. When employees feel valued, they will be much more motivated.

Mark Daoust, Quiet Light

Host Mental Health Fairs

One out-of-the-box way to make mental health more accessible to workers is to hold a mental health fair. These events function like traditional health fairs yet focus on psychological health. Booths can give out information on practices like stress management and avoiding burnout. Additionally, you can do activities like meditation and mindfulness worksheets. Beyond providing at-risk employees with resources, you can also use these fairs as a way to educate the workforce at large about mental health and help professionals to be better allies to psychologically vulnerable peers.

Carly Hill, Virtual Holiday Party

Encourage the Use of Wellness Apps

Employers can provide free resources and access to mental health apps. It can be a way for everyone in your company to get the mental health help they need, especially to prevent burnout amongst your employees. Using an app might feel less intimidating when seeking professional help from a therapist or psychiatrist.

You might not be there to visually recognize when an employee is overworking themselves. But with certain apps, they can get reminders to take breaks and maintain healthy habits during their working hours.

Scott Lieberman, Touchdown Money

Foster a “Life Happens” Culture

A healthy company culture understands that even the highest performing employees will face unideal circumstances that may take them away from work. A culture of ‘life happens’ understands that company needs shouldn’t supersede employee needs but ebb and flow. As we navigate turbulent times as a nation, we’ve all faced the universal truth that life happens, and sometimes things are out of our control.

Amrita Saigal, Kudos

Allow Flexible Work Schedules 

A remote or hybrid work schedule creates more flexibility for employees to take care of their physical and mental health how they see fit. Workers want freedom – time to spend with loved ones, take care of themselves, and travel – promoting one’s mental health on their terms. Allow the space and flexibility for your employees to take care of their mental health at their discretion.

Breanne Millette, BISOULOVELY

Train Leaders to Create Inclusive Environments 

Smaller businesses can make mental health more accessible to employees by equipping leaders with the tools and resources to have open, honest conversations and by creating a safe space for employees to speak openly without fear of judgment. 

Creating inclusive environments for conditions like autism, ADHD, dyslexia, and dyspraxia can go a long way in making sure everyone feels supported at work. By educating people about and accepting neurodiversity, you can create an inclusive and supportive workplace where everyone can thrive.

Dan Gissane, Huxo Creative

       

Digital Health Coaching

Digital Health Coaching as a Modern Employee Benefit

Whether working onsite in the healthcare, construction, service, and hospitality industries throughout the pandemic, the stresses of the past two years have taken their toll. Employees are tired. Employee Burnout is being experienced at an extremely high rate. 

More than four in 10 workers surveyed by global staffing firm Robert Half said they are more burned out on the job today compared to one year ago. That’s a 10% jump from a similar poll in 2020. In addition, nearly half of workers surveyed, some 49%, who are experiencing increased fatigue, blame this on heavier workloads. 

As the pandemic lingers, digital health coaching is on the rise. This modern employee benefit is proving to be a critical lifeline for employees now and in the future.

New Work Models Increase Employee Burnout and Health Issues

Open-ended remote and hybrid work has exacerbated employee burnout — a syndrome outlined by the World Health Organization resulting from chronic workplace stress characterized by decreased work efficiency, exhaustion, energy depletion, and negative and cynical feelings related to a job. 

These feelings are further compounded by increased substance use, sleep issues, and chronic health issues due to the current climate. All of which have a negative impact on safety, absenteeism, and productivity. To make matters worse, remote and hybrid workers aren’t always getting the support they need to cope.

Employers Turn to Digital Health Coaching to Support Workers

Employees need to feel supported while maintaining a sense of privacy. Unfortunately, people struggling with substance abuse disorder and mental health issues are often conditioned to remain silent — to suffer alone. Especially now, workers may even view their struggles as a temporary result of the pandemic rather than an undiagnosed problem. The issues are real, however. 

Between August 2020 and February 2021, the percentage of adults with recent symptoms of anxiety or depression increased from 36.4% to 41.5%, and the rate of those reporting unmet mental health care needs increased from 9.2% to 11.7%, according to the Centers for Disease Control and Prevention.

With the pervasiveness of unfulfilled mental health care in America, companies can fill the void to provide employees with guided intervention — supporting employees and helping them make lasting change. Companies can accomplish these goals by adopting robust substance use health insurance and policies, improving workplace culture, educating employees to promote drug-free workplaces, and providing employees with supportive and confidential services in a digital health coaching program.

Digital Health Coaching Meets Employees Where They Are

The root of a healthy company is a healthy workforce. Yet, many employer-backed health and wellness programs struggle to attract, engage, and produce tangible outcomes for employees. In addition, traditional programs are plagued with a one-size-fits-all approach to personal struggles. Personalizing care is critical for employers who want to build a pathway that helps individual employees build a strong foundation and momentum to overcome their struggles. 

With the help of a digital health coaching program, blending cognitive-behavioral training with video-based educational modules and a vast library of impactful content, every employee can obtain support and help when they need it. In addition, by creating personalized experiences and providing targeted content that appeals to different learning styles, such programs can effectively engage employees — raising the likelihood employees complete the program and achieve positive outcomes with staying power. 

Engaging Health Coaching Programs Benefit Workers and Employers

For employers questioning whether adding a digital health coaching program to their employee benefits is worth the cost, the answer is a resounding yes — yes, it is worth it. 

Some 80% of the total costs for treating chronic conditions such as diabetes, hypertension, obesity, cancer, asthma, and more stem from risks and unhealthy behaviors worsened by the pandemic. These include poor stress management and standard of care, insufficient sleep, excessive alcohol, drug use and smoking, poor diet, and a lack of physical activity and health screenings. As a result, costs to both workers and employers come in the form of additional healthcare spend and productivity loss. 

Data suggest the benefits of adopting a digital health coaching program, which helps reduce lifestyle risks and unhealthy behaviors, can result in significant savings for employers and employees alike. 

Depression, for example, the second-leading cause of “years lived with disability” worldwide, is steadily linked with greater economic burden and reduced work productivity, and this was pre-pandemic. It’s also estimated to cost employers nearly $20,000 per 100 employees each year in lost productivity and additional healthcare costs. Then there’s obesity. A chronic condition gradually rising, obesity increased from 30.5% to 42.4% from 1999–2000 through 2017–2018. Obesity alone can cost employers $100,000 – $550,000 each year per 100 employees in disability, workers’ compensation, absenteeism, and presenteeism.

Enhanced Digital Health Coaching

Enhanced digital health coaching serves to lower these costs. Employees who improve their general health and complete their treatment protocols to address risky behaviors, mental and chronic health issues are less likely to require expensive interventions later, saving them and their employers in the long run. 

Employers must act as employees continue to deal with pandemic burnout, increased stresses, substance use, and other risky behaviors. In doing so, they’ll help employees address the issues they may be silently struggling with, allowing them to make lasting change and improve the health of their workplaces.