Up-and-Coming Benefit Programs for Your Business

Employers who offer their employees up-and-coming benefit programs stand a better chance at retaining their staff. Because of the life-changing effects it can have for employees, financial wellness is quickly becoming a popular choice for employee benefits. Lack of learning opportunities and financial stress are two of the top reasons employees leave their jobs in search of other work. Financial wellness programs address both of these issues by providing education and increasing financial literacy. Therefore, employers who provide these programs as a benefit see greater retention rates among their employees.

The following are some of the benefit programs for your business that are worth exploring.

Student Loan Repayment Assistance

The average American student loan debt is around $30,000 and takes two decades to pay. Undoubtedly, going to school is a major investment. With an average interest rate of 5.8 percent (federal and private combined), the cost of a slow repayment can add up fast.

Employers can give employees up to $5,250 tax-free toward student loan repayment per tax year. While this may seem like a high price to pay per employee, it costs significantly less than high turnover rates. The Society for Human Resource Management (SHRM) reported that on average it costs a company 6 to 9 months of an employee’s salary to find a replacement. In other words, recruiting and training costs for an employee with a salary of $60,000 per year will be an additional $30,000 – $45,000. Instead, this income top-up alternative is beneficial to both the employer and the employee. This makes student loan repayment assistance one of the best benefit programs for your business.

For employers, Student Aid’s Tax Benefits for Higher Education goes in depth on this subject.

Financial Wellness Programs in the Workplace

Financial literacy is a subject typically not taught in schools. Only 12 states require high school students to take a personal finance course. Because of this, as individuals leave school and enter the workforce, many rely on their employers to provide financial education. It is therefore becoming increasingly necessary for employers to provide financial wellness programs within the workplace. While some employers may think it’s not their responsibility to provide this education, those who are savvy realize providing financial wellness helps their employees make the most of their paychecks. In other words, there is less pressure on employers to offer constant raises that may not be feasible for the company.

Employees are more likely to look for work elsewhere when they struggle to make ends meet with the paychecks they receive. According to LendingClub, 64% of Americans are living paycheck to paycheck. Consequently, modern workers have the tendency to leave their jobs frequently in search of higher pay. However, financial wellness programs teach employees how to take advantage of their paychecks. 

Financial wellness programs focus on all of the following:

• Budgeting
• Credit building
• Crisis management
• Debt reduction
• Student loan repayment

Employers who choose to add financial wellness programs to their employee benefit package should consider a third-party service. Employees may not be comfortable discussing finances directly with their employer, so providing a third-party benefit will help ensure the highest program enrollment number possible.

Flexible and Remote Scheduling Opportunities

Recent world conditions are changing the way businesses administer work. Companies are turning to work-from-home arrangements to sustain productivity. While 100 percent remote work might not be possible, a mixture of at-home and in-person environments has its perks. Most notably, employees will have more control over the scheduling of personal and work-related affairs.

Many industries, such as manufacturing and retail, don’t have remote work options available. However, there are many different ways employers can implement flexibility in the workplace. Employers who offer flexibility in terms of days of the week to work, time of day to work, number of hours to work, and so on can help employees improve the desired work-life balance. 

Paid Time Off for Charity Work 

A growing trend is volunteer time off (VTO). This version of paid time off provides compensation for employees taking part in select volunteering activities. This employee benefit has many perks, not least of which is that it increases one’s mental wellbeing. People who volunteer not only contribute to their community, but experience a boost in mood and overall better health. The Washington Post shared a study that showed people who started to volunteer became happier over time. Additionally, most people report that repetitive charitable behaviors keep stress away.

The Right Financial Workplace Wellness Program

Opportunities are abundant in the employee benefits sector. The statistics show that these up-and-coming benefit programs are worth adding to an employee benefit package. These programs help reduce employee stress, increase retention, and maximize workplace performance.

Find out how 101 Financial’s Workplace Wellness program can have positive, life-changing effects for employees.