Three Ways to Help Your Employees Save Money
by Christian Kunkel March 10, 2022
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For all the bad news, the pandemic at least had one positive effect. The U.S. personal savings rate (the amount people are able to set aside after taxes and spending) skyrocketed to more than 30%. For the previous decade, it had hovered at 6 to 8%.
As the economy opens up once again, consumer spending will rise and savings is likely to plummet. And that’s very bad news for most of your employees. Those on the lower end of the wage spectrum may have actually suffered financial setbacks during the past year and a half, but even those who have established a nest egg can expect that to evaporate rapidly if habits return to “normal.” According to a 2019 report from the Federal Reserve, four out of 10 Americans would be unable to pay an unexpected $400 bill out of their savings.
You know that financial distress can cost your employees in a lot of ways. Relying on credit in the short term means paying more — usually a lot more — for goods and services over the long term. Dings to a credit score that result from late payment (or nonpayment) means that everything will cost more in the future. The stress of living paycheck to paycheck takes a toll on your employees’ health, and having workers distracted by financial concerns can negatively affect your company’s safety and productivity.
What can an employer do? Well, you could give everyone an across-the-board 30% pay hike to bring pay levels back in line with middle-class wages twenty years ago. But, if that’s not in the budget, there are still some ways you can help your staff get back on a firm financial footing.
- Offer Financial EducationEven well-educated workers sometimes lack essential financial literacy. If you can support them with outside consultants or even in-house lunch-and-learn sessions, you’ll be providing a benefit that can last a lifetime. Workers just starting out in their careers may be carrying a large student loan burden, while those closer to retirement may be wondering if they have saved enough. Try to tailor sessions with specific concerns in mind, so your team can get the information most relevant to their concerns.
- Set Up a Matching Program If you offer a 401(k) program, or HSA or FSA options, your employees might need some encouragement to start saving. Even those who don’t feel they can afford to save for health care or retirement might not be able to resist the idea of “free money.” Make sure your employees understand these programs and how they can benefit from them. For those with no savings at all, the option to use HSA funds for non-medical emergencies (albeit with tax consequences and penalties) might provide some extra peace of mind. Even though the enrollment period may be limited, you can keep up the messaging on these important benefits all year long.
- Help Your Employees Get the Most from Their Health Benefits Most workers spend a significant amount of their income on health benefits. If they are confused about how to find an in-network provider, how to file a claim, or how to get the best price on their prescriptions, they are not getting full value from that investment. More importantly, if they are not aware of their preventive care benefits, they may pay more costly ways.
With a partner like Nayya, you can help your employees make the most of their insurance plan.
Nayya supplies data-driven insights (drawing on more than three billion data points, two million claims, and six thousand networks) and provides personalized recommendations for your employees, so they understand their benefits. And each employee has a dashboard that will help them with all their insurance needs–finding a provider, saving on prescription medications, filing a claim.
Want to help your employees save money with a benefit plan that is easy to understand… and easy to use? Visit us at Nayya.com/contact to schedule a guided demo today.
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