There is no doubt that the past two years have taken an emotional toll on us all – collectively and individually. As an employer, you have navigated these unprecedented times and probably know how the pandemic has impacted the lives of your employees.
Stress in the area of finances is nothing new but added to the stress of the pandemic and now exacerbated by inflation and other factors has many people more worried about money-matters than ever.
A recent survey from John Hancock, Stress, finances, and well-being: The impact of the pandemic on the American worker, has some interesting insights into the problem as well as the role employers can play in the solution.
Here are a few key takeaways from the survey:
Employees are engaged with their finances
Changes to spending patterns have forced employees to take a deeper look at their finances and try to manage them better. For some, there have been added difficulties such as new medical bills or loss of employment. Others are better off, having saved money by eliminating their commute or have received stimulus funds from the government. The bottom line is that many of your employees are more focused on their finances than before.
Employees are feeling stressed
72% of survey participants said stress was a significant issue. The rates of stress were even higher for those with debt (85%), middle-aged (77%), and women (79%). Financial stress was felt by 58% of survey participants with higher rates for those with debt (87%) and making less than $50,000 a year (73%). If your employees are like the average American worker, six out of ten of them are stressed out about their finances. As an employer you must realize that your employees don’t check these burdens at the door when they come to work.
Employees are concerned about retirement
Survey participants identified “Having enough saved for retirement” as their second highest concern. In the area of retirement savings, 43% felt they were behind in their savings. Only 37% had a comprehensive financial plan for retirement and 21% didn’t know when they would retire. These are concerns that you can help address as their employer by partnering with a fiduciary retirement plan provider.
Stress from values misalignment
Financial stress can arise not only from the lack of money but also when our money is misaligned with our values. In other words, stress can arise when we make money in ways we know we shouldn’t. For Christians, this might mean knowing that your investments are profiting from things that go against God’s heart, such as being invested in companies involved in abortion or pornography. Aligning your investments with your values through faith-based investing, sometimes referred to as Biblically responsible investing, can help reduce the stress caused by this misalignment.
Key opportunities
This data suggests that employers like you can play a pivotal role in helping your employees gain confidence about their finances and take positive financial steps, both today and for retirement. Indeed, 89% of survey participants said that financial wellness programs were an important and desired benefit. Your employees are looking for help and by utilizing key partnerships, such as with a retirement plan advisor, you can help your employees.
What would be the impact on your business if your employees came to work less stressed about their finances and actively preparing for retirement?
There are fantastic opportunities to improve the lives of your employees while improving your business. Win-win!
Do you have to time, resources, or expertise to take advantage of this opportunity to help your employees with financial wellness and retirement planning? If you don’t or would rather not bear the liability of offer that type of advice, then your best bet might be to work with a fiduciary retirement plan advisor.
As a 3(38) fiduciary retirement plan investment manager, Beacon Wealth Consultants has the expertise and the processes to take this on for you. We love helping Christian business owners and ministry leaders who want to offer a Christian retirement plan to their employees. We’re happy to look at your current retirement plan and give you a comparison to our turn-key 401(k) and 403(b) plans. Our Kingdom(k) and Kingdom(b) retirement plans also feature faith-based investment options that can help you and your employees align your investments with your faith values.
Schedule a call today to get more information about how we can help you and your team!