By Kay Burke, Worklife Program Manager, First Financial Bank
Hiring managers are telling us that recruiting and retaining talent has been very difficult in the ongoing pandemic economy. Workers have plenty of options and many of them are reevaluating their career goals. For employers who are under pressure to find and keep the best people, the key may come from going beyond a competitive paycheck and offering a diversified benefits package that helps employees comprehensively improve their financial picture.
Clearly, this is one of the most unusual labor markets in a long time. Job openings continue to come at a historically high rate. Human resources managers are watching eye-popping turnover that has led some to tab this period as The Great Resignation or simply the Big Quit. I hear plenty of stories about employees leaving for raises of 50 cents per hour.
So it's no surprise to hear HR professionals say that attraction and retention is a top priority right now. Some employers are turning to financial incentives, but the true differentiator could actually come in the form of benefits instead of just a slightly larger paycheck.
When I talk with businesses about their benefits, I encourage a needs assessment to uncover what may be taking time away from employees' focus on their work. Yes, in some cases it might come down to salary. But a deeper probe may reveal concerns about buying a house, saving for retirement, paying for college or building a household budget. We now have a workforce that is distracted by their desire to grow, be comfortable with and understand their total financial picture. Those distractions add up. It is estimated that employers lose nearly $2,000 in productivity per worker each year because of financial stress.
Employers can demonstrate greater concern for their teams by providing financial wellness benefits to help them relieve money-related stress. For example, the complimentary First Worklife® program from First Financial Bank helps employers understand in depth the reasons behind turnover and offer customizable modules to address those needs. This could include opening doors to mortgage discounts, financial education, retirement planning, healthcare savings, and other areas of support available from a menu of options.
An approach with multiple options is important because a franchise owner, for instance, will have different employee needs than a law firm. Employees with different challenges and interests will need different types of support to achieve financial wellness.
With these offerings on the table, an employee has more to consider than just a 50-cent raise from employer #2. When employer #1 is also offering mortgage assistance and financial education, suddenly that employer is more attractive. It becomes clear that employer #1 cares more about the employee's holistic financial needs.
This is the employer's way of saying, "The work is important, but I also want to make sure you're comfortable in your financial life outside of work, and I'm going to take the steps to help you with that."
Thinking beyond the paycheck, it makes sense for employers to ask their banks if they provide these types of programs to help workers reach personal financial success.
I have seen this approach work many times as a very successful strategy toward hiring and retention. Employees are grateful when their job includes help with personal budgeting, affording home repair or fixing their credit. Just as they come to expect job benefits that support their physical and mental health, they also appreciate benefits that lead to financial well-being.
