The Impacts of COVID-19
COVID-19 has severely impacted the economy, and nearly everyone is experiencing some sort of economic repercussion due to the pandemic. As cited by Benefits Pro, the U.S. Department of Labor is showing more unemployment claims right now than during the Great Recession or any natural disaster.
According to insights from the National Endowment for Financial Education (NEFE) survey, 88% of the participants stated that the pandemic is causing them financial issues. Of those, 41% worry they no longer have enough money in emergency savings and 28% are stressed about the inability to pay utilities, rent, or their mortgage. 25% of Americans have now stated that they are putting off making large purchases and nearly 40% have already dipped into their emergency savings. What is most concerning is 41% believe their financial situation won’t be any better a year from now.
How Financial Wellness Programs Can Help
While financial wellness programs cannot prevent a pandemic or any similar crises, they can help get employees back on their feet and learn sound financial principles to help them make smart choices during tough times. As outlined by Benefits Pro, here are a few ways that financial wellness programs can help your employees:
- Educate on budgeting and help create a successful budgeting plan.
- Help employees start building or rebuilding their savings.
- Create a plan to better manage debt.
- Educate about fraud and help employees avoid financial scams.
Incorporating a Financial Wellness Program
If you want to start assisting your employees with their financial stress but are unsure of how to get started, here are some tips for incorporating a financial wellness program!
- Survey your employees so you can learn more about their interests and specific needs related to financial wellness. This will give you a starting point and help you decide what kind of program will be the most beneficial to your employees.
- Focus on the big financial wellness picture. When you get your survey results back, don’t just focus on the number one financial wellness need. Offer multiple resources to address as many needs on the list as possible. Your employees will grow and change over the years, and the needs they put lower on the list may become more important down the line. Also, as the impacts of COVID-19 pass, needs are sure to shift. Offering a broad financial wellness strategy will ensure employees have specific resources available whenever they need them.
- Build off your existing wellness program. If you already have a financial wellness program in place, now is the perfect time to make any necessary adjustments. You will also want to take the time to reiterate your offerings and make sure employees fully understand how to use this benefit.
For more information on incorporating a wellness program, click here!