How To Assist Staff Members In Understanding The Effects Of Inflation During Open Enrollment.

Additionally, innovative perks can aid organizations in retaining and attracting the talent they require.

For the first time since the early 1980s, American workers are really concerned about inflation. Since May 2021, “real” hourly earnings (wage growth minus inflation) have fallen 3%, increasing the cost of basic necessities and decreasing the value of money already saved. That has the same effect as a general wage decrease.

Employees may experience greater financial stress as a result of inflation as they deal with the effects of economic uncertainty. How can employers support staff in coping? Employers may show they understand the financial challenges employees face by maximizing benefit offerings and offering solutions to ease those stresses. This is particularly important before open enrollment.

There are patterns in the greater support that employers are giving their employees, and we work with hundreds of American businesses to help them make the most of their benefits. A combination of regular health and high deductible health plans are offered by 72% of our corporate partners, up 20% in just two years. Many firms are changing HSA plans from a set contribution to a company match in order to assist employees in saving for medical expenses. For better rates and the addition of medical plans, some people are also switching insurance providers.

A lot of businesses are also extending benefits for financial wellness beyond traditional 401(k) plans. With 80% of businesses already providing support and 63% planning to expand their spending in the next two years, this is a developing sector. These benefits must incorporate thorough, continuous, tailored planning as well as cross-disciplinary education if they are to produce a workforce that is truly financially secure (taxes, investments, budgeting, etc.). Best-in-class services that cover an employee’s entire financial life can set creative firms apart.

Many organizations are also providing the following in order to draw in and keep top talent:

• Voluntary Benefits. The majority of our corporate partners provide optional group-priced benefits including insurance protection, help with child and elder care, and student loan repayment. These are becoming more common in benefit packages that are competitive.
• Employee Discounts. Discounts on one-time and recurring fees and services at establishments including shops, eateries, and tax, legal, and financial services can be well-liked hiring and retention strategies at no cost to employers.
• Accounts for Lifestyle Spending. Employers may contribute to after-tax accounts that employees can use for benefits and costs of their choosing, including tax preparation, gym memberships, nutrition, weight management, student loan repayment, ID theft protection, student loan repayment, care for family members or pets, insurance premiums, and support for mental and behavioral health.
• Emergency Savings Accounts. To encourage saving, some businesses make after-tax payroll deduction account contributions. Contributions may be set up as a match or a fixed sum up to a predetermined limit. Companies can assist staff members in accumulating emergency reserves that can be accessed through in-service withdrawals by matching after-tax 401(k) contributions. Congress is considering several bills to enable more tax-favored employer assistance.
• PTO Conversion. Many firms changed their paid time off (PTO) policy during the COVID-19 pandemic to provide employees additional flexibility. Companies typically enable employees to convert up to one week of vacation each year into cash. Some have the option to allocate these monies to 401(k) plan contributions, 529 savings accounts, or student loan repayment.
• Special Equity Grants. Many firms changed their paid time off (PTO) policy during the COVID-19 pandemic to provide employees additional flexibility. Companies typically enable employees to convert up to one week of vacation each year into cash. Some have the option to allocate these monies to 401(k) plan contributions, 529 savings accounts, or student loan repayment.

Companies of all sizes can use these solutions to fulfill the demands of complex, diverse workforces. Individuals will continue to demand more from their employers as they fight rising inflation.

Benefit packages that cover everything promote prosperity for all. Critical needs are supported for employees both inside and outside of the workplace. Reducing financial stress among employees can have positive effects on their performance and engagement, as well as their use of sick days, health insurance costs, and sense of loyalty. Additionally, innovative benefits can aid employers in retaining and attracting the talent they require.

Source: https://www.benefitspro.com/2022/11/10/how-to-help-employees-navigate-the-impact-of-inflation-during-open-enrollment/