In today’s economy, it’s more important than ever for employers to focus on attracting and retaining employees. The current competitive market environment and higher expectations from candidates mean employers need to differentiate themselves, and one way to do this is with workplace benefits, including employee benefit accounts.

Workforce retention resources

While some employment metrics are promising – such as the U.S. Bureau of Labor’s recent report showing January job gains and a steady workforce participation percentage – employers should continue to lean into how benefits can attract and retain talent. To this point, it is important to routinely assess current and future employees’ needs and preferences through surveys or focus groups to ensure benefit offerings remain relevant and effective.

As employers look at all the resources they have to stem turnover, compete for job candidates, drive engagement and boost company culture, it is vital they consider a full suite of employee benefits, including those aimed at financial security.

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Employees feel financial stress

According to the Employee Benefit Research Institute and Greenwald Research’s recent Workplace Wellness Survey (EBRI Research), 70% of Americans said thinking about their financial future makes them feel stressed, and 49% said that worrying about their finances distracts them from work. Financial stress has the potential to cause additional issues, including an avoidance or delay of medical care, decreased mental well-being or even seeking a new job to better meet immediate financial needs.

Without tools and support to address financial wellness, many struggle to manage day-to-day expenses, let alone plan for larger expenses or retirement. According to a new Bankrate report, 53% of Americans do not have sufficient liquidity or access to funds to cover an unexpected $1,000 emergency expense.

While financial stressors can be complex, employers have the opportunity to better engage their employees through the successful use of employee benefit accounts, such as:

  • Health savings accounts (HSAs)
  • Flexible spending accounts (FSAs)
  • Health reimbursement arrangements (HRAs)
  • Commuter benefit accounts

Each of these account types offers employees the benefits of tax advantages to better save and prepare for health care, dependent care costs and commuter expenses. They also allow employees to better control their finances in a way that’s individually tailored to their situation.

Alongside these tax-advantaged accounts are lifestyle accounts – like those that cover fitness or therapy expenses – which help round out the employer-offered benefits package.

Promoting financial wellness

Helping your employees take a proactive, holistic approach toward financial wellness by examining healthcare savings, savings accounts and retirement funding can provide them with a roadmap to make their hard-earned funds work for them in times of crisis. According to EBRI research, 70% of Americans strongly agree or somewhat agree that their employer has a responsibility to make sure employees are financially secure and well, highlighting that it is now more important than ever to prioritize the unique needs of your employees and provide tools for financial education and stability.

Employers should also evaluate the competitiveness of their benefits offerings, including spending account contributions, especially since nearly 50% of Americans want greater financial contributions from their employer. By seeding HSAs, for example, employers can reduce some of the stressors associated with switching to a high-deductible health plan paired with an HSA. This addresses the concern of having an out-of-pocket expense early on and allows employees to realize the potential benefit of lower monthly premium costs.

Choosing your benefit account team and tools

Carefully consider the administrator you work with when offering benefit spending accounts. You want to ensure your account administrator or custodian aligns with employees’ needs, preferences and provides clear communication for access, education, and support. Consider institutions that can offer a solution that is easy to implement, efficient to operate, saves time and money and—most importantly—attracts and retains employees.

In addition, you’ll want to offer financial wellness tools that help your team plan, save, and pay for health care, dependent care expenses, and commuter expenses. These tools should support year-round communication and, ultimately, drive employee retention and satisfaction.

Employees need support, financially and otherwise. For those offering benefit spending and saving accounts, it is important to take time to help employees realize all the benefits of these accounts to improve their overall financial wellness. Supporting your workforce with benefits that make a difference in their lives can be a key differentiator for retention, culture building and productivity.

Author: Brian Hutchin serves as executive vice president and director of Healthcare Services at UMB Bank.