As we mark the one-year anniversary of COVID-19, the work-from-home model is looking like it will be a big part of how we move forward. The old days of soldiering on through illness and dragging yourself into the office are no longer a sign of dedication but looked down upon as selfish and dangerous. The emotional and financial toll on individuals and families is still unknown. Time will tell if mental health issues and financial instability become the next pandemics we face in the years to come.
Work-Life Balance
Employers are well aware of the stress and isolation that quarantine practices have inflicted. Most companies are trying to relieve challenges and encourage people to actually take time off. But employees are still working long hours and struggling to maintain a healthy balance while both professional and personal life are happening at home. It is harder to see the real impact this time has taken on employees when managers are not having casual, in-person conversations with them on a daily basis.
Financial and Emotional Debt
While many people continued to work over the past year, many experienced layoffs, reduced hours, or pay cuts. Almost 60% of Americans withdrew from their retirement accounts during the pandemic, according to a recent survey from Kiplinger and Personal Capital, a wealth management organization. This means that people are not only suffering from financial challenges today but putting their longer-term retirement plans in jeopardy as well.
Employers Helping Employees’ Total Well-Being
Financial wellness has taken on new importance as people understand how fragile their financial position can be. Financial wellness programs include 401(k) savings programs; student loan repayment assistance; 529 College Savings plans; and access to financial counseling, education, and planning. Insurance carriers looking at cost-effective ways to provide these benefits must straddle the fine line of offering an objective service while also being a provider of the products that may be in the best interest of employees’ long-term financial health. Carriers should demonstrate objectivity and not appear to be creating a means of lead generation.
Winning With Wellness Benefits
A recent Broadridge Financial Solutions study found that a surprising 72% of Americans in the workforce said that, second only to salary, financial wellness benefits are the most critical factor when deciding whether or not to take a job. Additionally, two-thirds of those employees would seek a different job if they lost any of the financial wellness benefits they value.
As we begin the transition to a post-pandemic world, many lessons will shape our social and workforce behaviors. The importance of total well-being has been highlighted through the pandemic and resulting quarantine and shutdowns, and it will continue to be a focus as we see the real impact of 2020 unfold over the next few years. The result is that the demand for financial wellness benefits in addition to physical and mental wellness programs is likely to increase in the years to come.
This post is adapted from a larger article at Carrier Management.
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