Fight The Great Resignation by investing in financial wellness

Great Resignation

Attract and Retain Talent by Investing in Your Employees’ Health and Financial Wellness

Dana Borrero

## Employees Facing Economic Uncertainty

It’s no secret that employees are facing economic uncertainty. On top of the financial challenges brought on by the pandemic, Americans are now experiencing never-before-seen inflation rates. Cost-stressors have had employees fleeing their jobs in search of new roles with higher salaries, leaving businesses scrambling to find new ways to both attract and retain top talent.

## New Talent Strategies 

With the aftershocks of the Great Resignation still echoing, employers are doing anything and everything they can to better attract and retain employees. These strategies have ranged from simple (like extending their work from home policies) to extravagant (think overseas company offsites that are more vacation than work).  While each company finds their footing and begins to understand what best attracts and retains their target employees, it’s interesting to see what new methods of talent A&R employers come up with.

Recently, inflation is playing a big part in many A&R strategies. Employers know that their employees are likely feeling the pain of inflation in their daily lives, and are looking to new ways to help ease this struggle. Rising costs and other contributing factors are causing many employers to look to earned wage access (EWA) cards as part of their talent strategy to bring in new and retain existing workers, says [a report by Robin Arnfield for Employee Benefit News.](https://www.benefitnews.com/payments/news/inflation-boosts-enrollment-in-earned-wage-access-cards?position=editorial_1&campaignname=V2_EBN_AdviserFirstLook_20210421-08242022&utm_source=newsletter&utm_medium=email&utm_campaign=V2_EBN_AdviserFirstLook_20210421)

“Earned wage access”– sometimes called daily pay benefit, early wage access, instant pay, or on-demand pay– gives employees the opportunity to access money they’ve made before their scheduled payment date.

## Why EWA is Gaining Traction

Besides inflation, another facet of this new adoption of EWA is being fueled by competition faced by employers from the gig economy businesses (such as Lyft, Uber, and DoorDash) where people can receive instant payouts for work completed. Offering EWA is turning out to be a great talent attraction and retention strategy for employers. In the [previously mentioned article from EBN](https://www.benefitnews.com/payments/news/inflation-boosts-enrollment-in-earned-wage-access-cards?position=editorial_1&campaignname=V2_EBN_AdviserFirstLook_20210421-08242022&utm_source=newsletter&utm_medium=email&utm_campaign=V2_EBN_AdviserFirstLook_20210421), they point to OTG Management as an example. OTG, which partners with Ceridian for payroll, says they provide their employers with a Dayforce Wallet EWA card. 

The VP of human resources at OTG, Alan House, said in the report, “When we recruit at our career fairs, we mention Dayforce Wallet, and we tell new staff during their orientation about the service. We get a lot of excited individuals when they hear about the Dayforce Wallet card.”

OTG began using the cards in the US and Canada in 2021. And since then, it’s been adopted by 50% of hourly workers in the US and 30% for Canadian workers. Since August of 2021, House says there’s been a 131% increase in usage in the US.  

## EWA and Beyond

As it turns out, offering Earned Wage Access is proving to be a strong talent attraction and retention strategy. With inflation leading to increased prices across the board, many employees are struggling to find the funds to pay for gas for their car, groceries for their family, rent, and other utilities. Earned Wage Access empowers employees to access their money when they need it most, helping many stay afloat during the current economic turmoil.

In a time of widespread economic uncertainty, employees want to work for companies that have their back. Implementing EWA can truly have a meaningful impact on talent attraction and retention, and it’s exciting to how the concept continues to grow in coming years. 

Employers are looking to Earned Wage Access Cards to attract and retain talent in the midst of inflation.

Earned Wage Access Cards to Combat Inflation & The Great Resignation

If you work in higher education, we hardly need to tell you that the past few years haven’t been easy. The pandemic impacted just about every industry, but in the education world specifically, faculty and staff have faced a myriad of newly arisen challenges. Professors have had to adapt to remote working, and the ever frequent flip-flop of returning to in-person teaching and then back to remote with each new virus strain. On campus employees like administrators, maintenance, dining hall staff, and others, have faced challenges surrounding the inability to work remotely due to the nature of many of their roles. On top of pandemic-related challenges, budget cuts are consistently plaguing the education industry, which has resulted in  salary decreases and a loss of other perks across the board.

All of this has resulted in widespread burnout amongst faculty and staff in the education space. Let’s dive into the state of higher ed today, and how HR teams can better retain faculty and staff going into this school year.

## The State of Higher Ed Today 
The higher education space has not escaped the Great Resignation, which has swept across just about every industry this year. Many faculty and staff members are leaving their roles, either in search of new opportunities in the higher ed space, early retirement, or new roles in different industries altogether.

In fact, a recent survey conducted by Fidelity Investments on 1,100 faculty members revealed that over half of them, 55%, have seriously considered changing careers or retiring early. This included 35% of tenured employees, which just goes to show that even those who have job security are feeling the strain.

**The question remains, why do even those who have tenure want to leave academia?**

The answer, in part, has to do with the fact that education is changing. A report by Transamerica found that the shift from in-person to online education in the past years has resulted in an increase in employee turnover, and that 35% of higher education institutions reported seeing higher movement within their employee base.

The general assumption is that with the rise of online learning, universities have placed faculty under increased pressure to change the way that they teach. The shift to digital, with the challenges it brings and the blurred lines between work and home, have made it increasingly difficult for staff to find work+life balance.

An inability to find a balance between work and personal life is a clear recipe for career dissatisfaction, especially in a profession that already feels largely underpaid and undervalued.

## Incentivizing Faculty & Staff
In the current economic climate - one in which inflation is rampant and the cost of living is skyrocketing - it seems unlikely that higher ed institutions will be in a position to offer salary increases across the board. So, if you are hoping to better retain top talent at your college or university, it’s time to think about other incentives you can offer. One way to do this? Offering better benefits and a better benefits experience.

There are certain benefits that, in today’s day and age, are absolute non-negotiables when it comes to staff retention efforts. These include (but aren’t limited to):

**Healthcare**: An essential benefit. In the United States, health insurance is notoriously expensive, and it's not getting any cheaper.  With the economic challenges we face in today's inflationary environment, many employees are starting to worry that they won't be able to cover any unexpected health bills. To attract and retain top talent, offering health insurance with the right coverage level for each employee is a must.

**Retirement savings plans**: Just about every industry has employees that are nearing retirement age—but retirement savings plans are essential for employees of every age, not just those approaching their mid to late 60s. Retirement plans give employees peace of mind in knowing that they’re saving for their future without actively having to worry about it.

**Paid time off**: It’s time to scrap the notion that educators have an easy job just because they can take the summers off. The reality is, for the majority of the year, educators face the same challenges as any other working professional. And just like every other industry, they need time to recharge their batteries, take care of personal matters, or need time off for their health. Offering PTO days is vital in the higher ed space, now more than ever as burnout has been sweeping the industry.

**Wellness programs**: If the pandemic taught us anything, it’s that taking care of our mental and physical health is more important now, than ever. While some universities are starting to offer wellness programs, there’s still a long way to go. Focusing on wellness and preventative health shows employees that you care about their well-being and want to help them live happier lives.

**Childcare benefits**: As with any other industry, many staff members in the higher education space are parents. Finding affordable childcare options can be a challenge—especially when these parents were able to save on these costs while working remote, and now must pay inflated prices in order to go back to work. Offering benefits like on-campus childcare or subsidies for childcare expenses can go a long way in promoting a strong work-life balance and giving employees who are parents the same opportunities as non-parents.

**Professional development opportunities**: In today's rapidly changing world, employees must constantly update their skills and knowledge. And for higher education employees, this is doubly true. Faculty and staff need to be able to keep up with the latest changes in their field and learn new technologies so that they can continue teaching effectively. By providing professional development opportunities, both in academic and in soft skills, you can show your employees that you're invested in their success and future.

These are just a few of the benefits relevant to higher education employees. And while it might not seem like much, offering these benefits can make a big difference in making employees feel that your college or university is a place where they are looked after physically, mentally, and financially, and in the long term can bolster your retention efforts. 

However, offering all the best benefits in the world won’t help your efforts if employees are not aware of them, which is where communication comes in.

## Benefits Education and Communication
Like we said, offering amazing, comprehensive benefits is key, but you’ll also need to support your employees and give them the ability to make educated benefits decisions. Effective communication is the first step to helping employees make the right benefits decisions for themselves and their families. This means ensuring that employees are aware of the available benefits and providing them with the tools and information they need to make informed choices. 

Benefits education is especially critical when introducing new benefits, making changes to existing programs, or at times of high employee turnover, like we're seeing now. High turnover rates result in a sort of “evergreen” hiring culture. With new faculty and staff members joining what feels like weekly. With new employees always coming aboard, it can be difficult to provide the comprehensive education each unique employee needs when it’s time for them to enroll in their benefits.

Not all colleges and universities have someone on-call to answer benefits questions 24/7, and even if you do have a dedicated benefits administrator, they can quickly become inundated with hundreds of questions from confused employees. This is where you can start to think about bringing in technology.

A benefits decision support tool can personalize and optimize benefits enrollment, providing unique benefits education to each employee based on their physical, mental, and financial needs. From there, a decision support tool can offer personalized recommendations to each employee about the plans to choose that best meet the needs of themselves and their families. This offloads some of the education and one-to-one questions from HR teams, giving them the time back to focus on other outcomes or more complex queries. 

A college or university is only as strong as its  faculty and staff—these are the people providing the education and creating the college experience for each student. That’s why finding new ways to better retain employees is critical in higher education. Offering comprehensive benefits, and a decision support tool to help them best understand and choose their benefits can help maximize the value of those plans and increase employee satisfaction.

Higher education facilities are facing faculty burnout and turnover like never before. Learn how benefits can help.

Colleges & Universities: Retain Faculty & Staff Through Better Benefits

It can't be stated often enough that staff and faculty in the education space are the backbone of society. Professors, advisors, administrators, coaches, groundskeepers, cafeteria staff, health services, and every other profession that makes up an education system all play a critical role in creating an environment that empowers students of all ages to learn, grow, and prepare for the future.  

In the higher education space, however, these employees are facing challenges like mass budget-cuts—resulting in burnout, salary decreases, and unhappy employees. In fact, according to the most recent 2020-21 Faculty Compensation Survey carried out by the American Association of University Professors (AAUP), working conditions for faculty continue to worsen, and salaries are not keeping up with the rising cost of living.

## Higher Education, Lower Salaries

For some background, the AAUP's Faculty Compensation Survey collected employment data at 929 higher education institutions. The data covered nearly 380,000 full-time faculty members, as well as senior administrators at nearly 600 institutions. The shocking results? For the first time since the Great Recession (2007-2009), real wages for full-time faculty members decreased.
The average wage growth for full-time faculty members at all levels was the lowest in AAUP records since they started tracking annual wage growth in 1972. But when adjusted for inflation, the real wages actually decreased at over two-thirds of higher education institutions. The overall spending power of college and university educators decreased versus a year ago. For an in depth look at the numbers, be sure to [check out the full report](https://www.aaup.org/2020-21-faculty-compensation-survey-results).

## Retaining Faculty and Staff
In addition to salary decreases, the survey also found that the number of full-time faculty decreased at over half of the colleges and universities surveyed. This number accounts for both faculty making the decision to leave the profession _and_ those who have been affected by layoffs and furloughs.  

As for why so many employees are leaving the profession, it could be a result of many factors, such as workplace changes (remote/ hybrid transitions), pandemic burnout, and aforementioned salary decreases. For those impacted by layoffs, it's mainly yet another unfortunate result of the pandemic.

## Pandemic Impact on Higher Ed

Given the timing of the survey, the AAUP also compiled data on the colleges and universities' responses to the COVID-19 pandemic. Even before the pandemic, many institutions were facing budget deficits and struggling to make ends meet. There were many job cuts, furloughs, hiring freezes, and salary reductions being implemented across the board. As with many other industries, the pandemic made matters worse—presenting colleges and universities across the country with significant revenue shortfalls.
In response to the health crisis, institutions took a range of actions to face the new economic challenges. The AAUP survey asked participants to identify how many faculty members were impacted by the pandemic response at their institution. The findings paint an unfortunate picture of the impact of the pandemic on higher ed employees: 
- Furloughs: almost 10 percent of faculty 
- Salary freezes or reductions: nearly 60 percent of faculty
- Elimination or reduction of fringe benefits: 30 percent of faculty
- Non-renewal or termination of contracts: over 20 percent for non-tenure-track faculty and over 5 percent for tenure-line faculty

Overall, it's clear that the pandemic has significantly impacted higher education, putting additional pressure on an already struggling system.

## Here’s Where HR Comes In

The role of HR in higher education is evolving, and the pandemic has only accelerated this change. As budgets for education continue to be tight, it doesn't seem like salary increases will be back on the table anytime soon. HR teams in the education space unfortunately need to find a way to do more with less. So, how can HR professionals get creative and develop an experience for employees that drives cost savings across the board?

**A fresh approach to benefits.**

Benefits are at the epicenter of solving many challenges and obstacles facing HR teams at colleges and universities today. While many institutions are looking to expand benefits packages to offer more opportunities to save on healthcare and drive financial wellness, this alone won’t help faculty and staff save on costs.

If benefits are really to drive cost-savings, employees need to not only _have_ options, but _truly understand_ their options. The real challenge facing HR teams is streamlining benefits education, increasing participation, and ensuring that employees are getting the most out of those benefits. The best benefits package in the world will fly completely under the radar if employees aren’t educated about their options. 

This is where [Nayya](https://www.nayya.com) comes in.

After gathering an understanding of an employee’s mental, physical, and financial needs, Nayya offers a step-by-step experience that delivers a personalized recommendation of best-fit benefits plans. Challenging the status quo of holding a myriad of educational webinars, sharing a series of disparate and lengthy PDFs, and communicating inefficiently, HR teams at Colleges and Universities are in a position to save valuable time, drive cost savings, increase participation, and boost organizational confidence in benefit decisions with Nayya.

Similar to how TurboTax enables the everyday consumer to file their taxes with confidence, Nayya offers a consolidated benefits experience that removes complexity and empowers individuals with education and confidence to make the right decisions during enrollment. After a less than 10 minute questionnaire, employees are presented with a personalized recommendation of the medical, financial, and voluntary benefits that best align with their mental, physical, and financial needs.

Nayya puts HR teams in a position to drive cost-savings for both employees and employers—giving you the best of both worlds. Benefits decisions are the single most important financial decisions employees make each year— 65% of employees across America have experienced an unexpected medical event or emergency, and 63% of those have faced medical debt as a result, [research shows](https://go.nayya.com/consumers-unpacking-the-healthcare-crisis). HR teams can prevent medical debt and drive cost savings for employees by bringing in Nayya, which can demonstrate the impact that different plans have on potential health and financial scenarios that may arise throughout the year. Additionally, Nayya can help employees understand exactly how much money will be coming out of their paycheck, how much will be going into savings, and more, at the point of enrollment—eliminating any cost confusion. Nayya helps HR teams create savings for your overall organization by delivering on plan migration and increasing participation across both traditional and voluntary benefits.

Guesswork has no place in higher education. Help your faculty and staff make informed, confident benefits decisions during enrollment and drive cost-savings for all members of your organization. 


The past 2 years have not been easy on faculty and staff. Learn how HR teams can drive cost-savings despite budget cuts.

Attract and Retain Talent by Investing in Your Employees’ Health and Financial Wellness

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