By Pension and Benefits Editorial Staff
Seventy percent of companies currently offer financial well-being benefits and more than half of them intend to expand such offerings in 2020. This is one of the key findings captured in the Financial Well-Being Study released by WorldatWork in partnership with global share plan provider Computershare. In addition to assessing the prevalence of specific types of financial well-being benefits (to cover life events, personal debt, living expenses, and personal development) the survey dives into how organizations measure well-being benefit needs of the workforce, communications strategies and usage rates.
“Financial benefits play a critical role in effective Total Rewards programs and this survey is a powerful benchmarking tool for employers. With life events (39 percent), rising healthcare costs (34 percent) and personal debt (22 percent) the leading stressors within the workplace, it’s no surprise that organizations are focusing on financial benefits, especially in such a tight labor market where retaining talent is so critical,” said Scott Cawood, president and CEO of WorldatWork.
Other key findings include:
- Over the past two years, financial well-being has received more attention than in prior years; 35 percent of companies have increased spending in this area.
- 49 percent of companies have rolled out new financial well-being plans, and 59 percent of HR teams are increasing time spent supporting these benefits.
- 21 percent of organizations are offering employee stock purchase programs (ESPPs) today, with an increase of 5 percent under consideration for 2020.
- Participant engagement rates are high in companies that offer ESPPs (82 percent).
- Of the 76 percent of companies offering ESPPs at a discounted rate, 96 percent said that they had no impact on 401(k) plans.
- 401(k) or equivalent plans with employer match are the most popular retirement offering (90 percent). Employee- or employer-funded HSA accounts for use in retirement are an emerging area of interest.
- For living expenses, budget assistance programs (29 percent) are the most common, followed by assistance finding/securing non-health insurance (28 percent) and debt consolidation services (27 percent). For college and professional development, funding work-related conferences (91 percent), tuition assistance (83 percent) and certification assistance (71 percent) are the most popular offerings.
- Covering fertility treatments (inside health plans), assistance finding affordable daycare and eldercare, assistance finding affordable sick care for children and assistance securing affordable childcare are the top five family-related programs being offered to employees or are being considered for 2020.
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