How advisers can better support the financial needs of working women

Fallout from the Great Resignation, or Great Reshuffle if you prefer, continues to be felt, with the most recent data showing that more than 4 million Americans quit their jobs in December. That capped a historic year wherein a record 47.4 million of us headed for the exits.

By a number of accounts, women appear to be leading the charge. A recent survey that Betterment’s 401(k) business conducted found that female employees were almost twice as likely as men to have quit their job in the past 12 months. Not only is it frustrating and bad for morale for businesses to lose employees, it also can have an impact on their bottom line. The Society for Human Resource Management found that it costs companies an average of six to nine months of an employee’s salary to replace them.

In the face of this troubling trend, many businesses are asking themselves how to get these employees — particularly women — to stay and how to attract new talent. While this is a multifaceted issue, a critical way that employers can get ahead of hiring and retention efforts is by offering a strong benefits package with robust financial wellness offerings that support women’s financial needs. This presents advisers with a critical opportunity to help the businesses they work with understand what financial wellness benefits they can — and should — be offering.

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Any benefits package should start with a 401(k). Retirement planning is a critical financial goal, and something that women have fallen behind on in comparison with men. However, there are a number of other differentiated benefits that companies can explore. Student loan debt in the U.S. is a huge burden standing in the way of many Americans:. It now stands at $1.6 trillion, and 40% of women and 28% of men we surveyed reported having student loan debt. For many women, student loan management benefits are at the top of their wish list for potential employers. Women were nearly twice as likely to say that student loan repayment programs would entice them to stay with their current employer instead of jumping ship.

As the end of the moratorium on student loan payments approaches, it’s become clear that repayment assistance is top of mind for employees. Student loan-focused benefits are beginning to shift from a nice-to-have to a necessary benefit that workers consider when vetting potential employers. Our survey found that 85% of borrowers would be enticed to leave their job for an employer that offered stronger financial wellness benefits. Advisers should encourage plan sponsors to consider student loan repayment benefits in order to keep the most competitive talent.

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Another benefit that can help female employees thrive financially is access to an employer-sponsored emergency fund. In our survey, we found that 41% of women do not have money saved up for an emergency primarily because they didn’t feel they had the income to build one. Only 28% of men reported not having an emergency fund.

Employer-sponsored emergency funds can help employees reduce financial anxiety when facing unexpected life events such as unemployment, critical illness, or unexpected caregiving needs – all circumstances that disproportionately impact women. It also can help ensure they avoid debt, or the need to borrow from other funds such as their 401(k) to pay for these unexpected expenses. Advisers should encourage plan sponsors to consider offering an employer-sponsored emergency fund to help close the gender savings gap and reduce financial anxieties among women employees.

Financial planning for women has historically been deprioritized industry-wide, but it’s something near and dear to my heart, having worked to help female co-workers take control of their finances in the past. I think it’s especially important for employers to make sure that their women employees have access to a financial adviser who can speak to their needs.

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Increasingly, one-on-one, personalized financial advice is a benefit that employees crave. We found that 70% of employees believe that having access to a financial adviser would be valuable in helping them achieve long-term financial wellness. Advisers can play a critical role in helping women understand their current financial situation, set concrete goals and determine a path to achieve them.

The pandemic’s financial impact on women cannot be understated. Our survey found that just 37% of full-time women employees rated themselves as financially stable compared to 61% of men. At a time when many women are struggling with significant financial pressure and still exiting the workforce in high numbers, employers can play a valuable role to close these gaps and support women employees with achieving financial wellness. Letting your employees know that you care about their wellbeing is a critical step in creating a workplace environment they want to join and stay put.