Employers ramp up efforts for financial wellness

Employees today are keen on improving their financial well-being and expect their employers to play a role in this endeavor.

According to the 2024 Wellbeing and Voluntary Benefits Survey by Buck, a Gallagher company, an overwhelming 92% of employees seek enhanced financial well-being resources from their employers. Nearly three-quarters of employers plan to address financial well-being this year.¹ Tom Kelly, a voluntary benefit consultant for Gallagher, emphasizes the importance of this initiative.

Kelly suggests employers focus on various benefits to help support their employees’ financial health. These include financial coaching, which provides personalized guidance to help employees manage their finances effectively, and credit improvement programs that offer tools and resources to assist employees in improving their credit scores. Additionally, supplemental health benefits can offer employees options that complement standard medical insurance.

In a recent video interview, Kelly shared further insights into how HR leaders can use these and other programs to help minimize employees’ financial pressures. By prioritizing financial wellness, HR has the potential to positively impact employees’ overall well-being, fostering a more supportive and resilient workforce in the face of economic challenges. 

Employers prioritize financial well-being resources

Health FSAs are flexible and can be used with any health plan, allowing employees to allocate pretax dollars for eligible medical expenses. HSAs require enrollment in a qualified high-deductible health plan (HDHP) but offer pre-tax contributions with use of tax-free funds for eligible expenses.

Effective communication and education about these accounts are vital for employees to leverage their savings potential fully. Alternative funding arrangements, such as health reimbursement accounts (HRAs), level funding, and self-funding, can also offer cost-effective solutions for employers by enabling them to manage costs more effectively by assuming some of the risk, while also offering comprehensive coverage for employees.

Balancing health benefits with financial wellness amid budget constraints requires innovative strategies and collaboration. Brokers and advisers play a crucial role in helping employers navigate these complexities. Employers can offer valuable benefits that potentially help them with their own financial stability by surveying employee preferences, leveraging tax-advantaged accounts and exploring alternative funding.

The goal is clear: to foster a financially fit and literate workforce that feels supported and valued, benefiting both individuals and the organization.

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