Retain talent by focusing on wellness, financial health
While unemployment is down in New Mexico, the state continues to add jobs and opportunities for New Mexicans. According to the New Mexico Department of Workforce Solutions, nonagricultural jobs grew by 2.9% last year, or 24,500 jobs. While this is positive news for job seekers, these gains are coming amid an environment of heightened inflation, creating a unique challenge for employers vying to attract and support talent. As open positions impact companies across industries, businesses can shift their focus to employee retention. According to Bank of America’s Workplace Benefits Report, 46% of employers have seen an increase in resignations over the past year, while one in three employees have switched jobs or thought about switching jobs.
Our research shows employees are significantly stressed by current economic conditions, leading to a decrease in their feelings of personal financial wellness. The percentage of employees who feel financially well hit a fiveyear low in last July. This is true in New Mexico as well: an Albuquerque Journal poll last fall found that 35% of New Mexican families are worried about inflation and 24% of New Mexicans are concerned about economic certainty. Perceptions of financial wellness are also impacted by ethnicity, gender, and generational factors. For instance, women continue to trail men in their feelings about financial wellness and preparedness, and employees of color report significantly lower feelings of financial wellness compared to white employees.
Many leaders already feel responsible for their employees’ financial wellbeing. However, as employers address record levels of turnover amid a period of economic uncertainty, it is more important than ever to provide additional support and resources. What can leaders do to retain their workforce? A vast majority of employers now say that offering financial wellness tools can reduce employee attrition, and wellness tools can help attract higher quality employees. Employers can take a number of steps to help retain and empower their workforce:
EMBRACE EMPLOYEE FINANCIAL WELLNESS AND EXPAND SUPPORT:
Given heightened inflation, employees are feeling the pinch financially. Employers should embrace programs such as financial coaching, as well as digital tools that help employees better plan and manage their finances. For example, 91% of companies see higher employee satisfaction when they offer resources to manage overall wellbeing. Companies that take it a step further and broaden their wellness programs to include mental and physical wellness resources see noticeable improvements in productivity, employee stress, morale, creativity, and innovation.
PROVIDE ACCESS TO INVESTMENT ADVICE:
Employees are eager to invest and grow their wealth, which can be an intimidating process. Four in 10 employees say they want access to advice from an investment professional. Armed with that knowledge, 62% of employers now offer employees access to investment advice services. Whether it’s an internal team or external company, give your team the tools they need to feel confident in financial decisions.
FOCUS ON HEALTH CARE EDUCATION:
Eighty-four percent of employers feel very responsible for their employees’ understanding of retirement health care needs and costs, and 89% of employers who offer Health Savings Accounts (HSAs) contribute to their employees’ savings. Yet, only 54% of employers communicate about these topics at least once a year. There’s a big opportunity to improve communication and educate employees about their health care benefits. Take the time to remind them about their options, especially as you gear up for open enrollment.
RECOGNIZE EQUITY GRANTS AS POWERFUL RECRUITMENT AND RETENTION INCENTIVES:
As an employer, you have insight into compensation and should regularly review pay and conduct an equity analysis. Seventy-six percent of employers believe equity compensation is a differentiator for employee recruitment and retention, and 44% of employees who participate in equity compensation plans say it was an important reason for accepting the job.
It has been estimated that a person will spend one third of their adult life at work. Employees serve as significant advocates for their company and work, which is why it’s important that they have the resources and tools to bring their best selves to work. Employers can help by taking the initiative and giving their team the tools to not only survive but thrive.