More than half of the 70% of companies that offer them expect to expand their offerings this year, according to a new WorldatWork study

by Brian Anderson | January 13, 2020

Seventy percent of companies currently offer financial well-being benefits and more than half of them intend to expand such offerings in 2020, according to a new financial well-being study.

As employers worry that their workers aren’t saving enough money for retirement, paying down debt or handling medical expenses, the study by WorldatWork, the Total Rewards Association, in partnership with global share plan provider Computershare, dives into how organizations measure well-being benefit needs of the workforce, communications strategies and usage rates.

In addition, the study assesses the prevalence of specific types of financial well-being benefits (to cover life events, personal debt, living expenses, and personal development).

“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%), rising healthcare costs (34%) and personal debt (22%) 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.

Increased focus on financial wellness

The study puts some figures alongside its assessment that employers are increasing their focus on financial wellness:

• Over the past two years, financial well-being has received more attention than in prior years; 35% of companies have increased spending in this area.
• 49% of companies have rolled out new financial well-being plans, and 59% of HR teams are increasing time spent supporting these benefits.
• 21% of organizations are offering employee stock purchase programs (ESPPs) today, with an increase of 5% under consideration for 2020.
• Participant engagement rates are high in companies that offer ESPPs (82%).
• Of the 76% of companies offering ESPPs at a discounted rate, 96% said that they had no impact on 401k plans.
• 401k or equivalent plans with employer match are the most popular retirement offering (90%). Employee- or employer-funded HSA accounts for use in retirement are an emerging area of interest.

“Time and time again, research demonstrates that broad-based benefit programs encourage more engaged, productive, and loyal employees,” said Sheila Frierson, head of Computershare’s U.S. equity plans business.

WorldatWork collected data for the surveys from its members in September 2019. The survey report was based on 326 responses. The typical WorldatWork member works at the managerial level or higher in the headquarters of a large company in North America.

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Source: 401(k) Specialist

https://401kspecialistmag.com/financial-wellness-benefits-poised-for-big-growth-in-2020/