Rising inflation,
Amid these challenges, employees are demanding more support from employers when navigating their path to financial wellness. But a disconnect remains between high demand for
Advisers can help employers uncover the knowledge gaps in employees who need the support but are not taking full advantage of their
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Demand for employer-based financial assistance has never been stronger. A recent
Despite these expectations, only about a quarter of the employees surveyed took advantage of a small portion of financial benefits offered to them, or none at all. Just 26% of Gen Z are taking advantage of all their employers' financial wellness offerings compared to 32% of Millennials, 38% of Gen X and 28% of Boomers. With
If employees are craving financial benefits but not using them, the question becomes why. Betterment at Work found one of the primary reasons is a lack of knowledge — 36% of employees aren't clear on what benefits their employers offer. Similarly, 11% don't even know how to sign up for these benefits altogether, which, in the era of remote work, could be a symptom of not having face time with leaders who can walk employees through the step-by-step process of enrollment.
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The easiest way for employers to improve employee satisfaction with their financial wellness offerings is to ensure employees know how to take advantage of the benefits they already provide. Advisers can counsel employers to provide clear, regular communications around benefits programs to help employees understand what is offered, how and when to sign up, and when to re-engage them with certain offerings. For example, advisers can suggest sending email reminders to raise 401(k) contribution rates, or instructions for how to use a wellness stipend or schedule time with a financial adviser.
Another reason employees may not be taking advantage of benefits employers offer is a simple one — they don't want those benefits. Betterment at Work found that 30% of employees don't use all the benefits offered by their employer because they just didn't need every single benefit. The benefits employers offered pre-pandemic (i.e., commuting stipends, free snacks in the office) may not make sense anymore in the world of hybrid work and at-home office setups.
Advisers should guide employers to ask employees for feedback on the financial wellness benefits they currently provide. This can help companies identify which benefits are most useful, what's missing from their packages and what can be cut to make room for offerings more in high demand since the pandemic began. Examples include employer-sponsored emergency funds or a cash reserve to set aside for unexpected expenses and mishaps.
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This shows there is increased employee appetite for employers to help guide them with accumulating emergency savings. In the wake of the
As many as 78% of the employees Betterment at Work surveyed said they want employers to more proactively and clearly communicate the financial wellness benefits they offer. It's clear employees are looking not only for an easy-to-use benefits platform that lays out their options, but also more communication from their employers about these benefits to help them understand. It's up to employers to step up and answer the call. Whether it be through education tools or listening and learning to understand which benefits would be most valuable, employers have an opportunity to not only help their employees take advantage of their benefits packages, but also demonstrate how much they value employees and their financial freedom.
