The study examines the current state of financial wellness benefits, including prioritization, utilization and the associated benefits and challenges.
NEW YORK, Aug. 25, 2023 /PRNewswire-PRWeb/ -- A new report from Arizent, parent company of Employee Benefit News, a leading information resource for decision makers in benefits and human resources, explores if and how employers are offering financial wellness benefits to their employees. The findings reveal that relatively few companies currently offer financial wellness benefits beyond retirement options because the majority of HR leaders believe there's little to no employee demand; yet companies with these benefits report a high utilization rate among their workers.
"With economic uncertainty on the rise, employers have an opportunity to better support employees with financial-wellness-focused benefits," Janet King, Vice President of Arizent Research, says. "But first, they need to understand what financial wellness encompasses and how these benefits can truly help their workers."
While most of the respondents see the critical nature of retirement benefits (84% say their company offers 401(k) plans), 64% of HR leaders believe that there's little to no employee demand for other financial wellness benefits, such as health savings accounts, group life insurance and loan assistance. As a result, only 33% of companies surveyed offer benefits focused on financial wellness.
Concurrently, 90% of respondents agree that these offerings are more important than ever in 2023. 89% think that these benefits can help them attract and retain talent, but many organizations have not turned this perceived value into action.
"It's possible that presumed low demand indicates a lack of employee knowledge about financial wellness benefits rather than disinterest in these offerings altogether," King adds. "Employers – who have already made great inroads with retirement offerings – may want to consider educating employees on the other options for financial wellness benefits. And for benefits providers, particularly those specializing in these services, this is a massive untapped opportunity to improve offerings in an underserved area and act as a true partner for support and ROI considerations."
The research shows that for companies offering financial wellness benefits, utilization rates among employees are high, which further begs the question: Why don't more organizations offer these benefits? Respondents consistently cite an inability to accurately measure return on investment (ROI) as a contributing factor, with 42% somewhat agreeing and 20% strongly agreeing that they struggle to measure ROI.
To see how benefits providers can offer support as partners, and how employers can improve their financial wellness efforts, download the full report here: https://www.benefitnews.com/research-report/finding-the-right-tools-to-support-financial-wellness
Research Methodology
This research was conducted by Arizent, parent company of Employee Benefit News, online in June 2023 with 200 HR/executive leadership professionals at companies with at least 10 employees who are eligible for benefits. To qualify, respondents had to have some responsibility/oversight of benefits, employee wellness and/or total rewards.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About Employee Benefit News
Employee Benefit News (EBN) is the primary media resource for decision makers in the worlds of employee benefits, human resources and workplace culture. As the dynamics of these spaces continue to shift and become increasingly complex, EBN delivers expert insights to allow business leaders to navigate their industries with agility. From helping benefits managers meet the challenges of reducing care costs and improving retirement plans to providing HR leaders with guidance on building a talented and diverse workforce, EBN drives the conversation and delivers the research and analysis to help readers support their companies' objectives.
Media Contact
Janet King, Arizent, 212-803-8500, [email protected], www.Arizent.com
SOURCE Arizent
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