As a benefits broker, you’ve heard plenty of stats about employees’ financial stress. It’s somewhat hard to believe that most U.S. workers today continue to live paycheck-to-paycheck. In spite of the fact that Americans have recovered from the Great Recession a decade ago and that the unemployment rate is the lowest it has been in many years, employees are essentially making the same amount of money they did during the pre-recession ‘good days’ many years ago.
That means employees are stressed about their finances. They don’t have enough emergency savings for unexpected expenses and struggle to make minimum monthly payments on credit cards and loans. And the problem is bigger than that because their financial stress also distracts them at work. Whether it’s student loans, car payments, mortgage/rent payments, credit card debt, an unexpected expense or some other financial matter that they are worried about, the bottom line is they are spending time at work on these issues rather than doing the job employers are paying them to do.
Thus, employees’ personal financial stress affects employers as well. When employees bring that financial stress to work, it results in low productivity, absenteeism and, in many cases, higher healthcare costs. This is a big concern to your clients.
So, what’s the answer? Either the employee needs a financial windfall – winning the lottery, getting a 50 percent raise or inheriting millions. The other option is for the employee to make the money he/she does have to do more. Financial flexibility can help them get there.
Find out what financial flexibility is, and ways you can help clients provide more of it to their employees, in our recent whitepaper, “The New Normal: Achieving Financial Flexibility.”