Top 5 Financial Wellness Benefits Your Small Business Should Offer
It’s no secret that attracting and retaining top talent is crucial for the success of any small business. While offering competitive salaries is the baseline for keeping employees and prospective new hires happy, providing financial planning resources to employees is becoming more important than ever.
There are several ways to provide financial planning resources to employees. Some of the most popular methods include:
1. A small business 401(k) plan.
A 401(k) plan is a retirement savings plan that allows employees to contribute a portion of their income to a tax-advantaged investment account. To that end, a small business 401(k) plan is the same thing, but tailored to employers and employees at a small business.
Employers can also contribute to the plan on behalf of their employees. Offering a 401(k) plan is a valuable employee benefit–and a great way to help your employees save for retirement.
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2. Health insurance plan options.
Health insurance is the single-most desired benefit employees want, and for significant financial reasons. Participation in a health insurance plan lifts a massive financial burden from individuals seeking medical attention for anything from serious illness to a sprained finger.
3. Health savings accounts (HSAs).
HSAs are tax-advantaged savings accounts that employees can use to pay for qualified medical expenses. HSAs are typically offered in conjunction with high-deductible health insurance plans and can help employees save money on healthcare expenses, while also encouraging them to be more engaged in their healthcare decisions.
4. Workplace life and disability insurance plans
The opportunity to participate in these types of insurance is highly valued by employees of all stripes. At typically very little cost to the employers, you can offer your employees peace of mind that they and their beneficiaries will be covered after an adverse event.
5. Financial education resources.
From improving financial literacy to making better financial decisions, financial wellness programs can include workshops, online resources, and one-on-one counseling sessions with financial advisors.
There are three easy steps to start implementing these financial wellness benefits at your company.
1. Understand your employees’ needs and preferences.
Conducting surveys or focus groups can help you identify what types of resources your employees are most interested in and their financial goals and challenges. It’s important to choose resources that are affordable, easy to use and provide value to your employees.
2. Optimize communication with employees.
Ensure your employees understand the benefits of the resources you offer and how to access them. Provide regular updates and encourage feedback to ensure the resources meet your employees’ needs.
3. Provide ongoing support and education.
Financial planning is an ongoing process, and supporting your employees is important. This can include regular workshops, one-on-one counseling sessions, or access to online resources, such as the Ubiquity blog, which is full of relevant articles designed to help savers increase their financial literacy.
Ubiquity is not a registered investment advisor and no portion of the material herein should be construed as legal or tax advice. Please consult with your financial planner, attorney and/or tax advisor for advice.