Stretch your Paycheck Further 

Enrolling in the right benefits can protect more than just physical health. Helping employees build right-fit benefits packages for themselves can have pre-tax perks, helping them get even more out of their paychecks while building financial security.

As Rachel Green famously said in season 1 of FRIENDS, “Who’s FICA? Why’s he getting all my money?”

While that quote is over 20 years old, the sentiment is not. Many of us are feeling the stress of inflation on our paychecks and are looking for more ways to make our hard-earned dollars go further. As tax season winds down and we either see money flow in from a return or out from a balance owed, financial savviness might be top of mind.

Creating a diverse benefits program gives your employees a head-start on their financial growth. The classic contenders like 401(k)s, HSAs, and FSAs shoulder the double duty of lowering taxable income while promoting smart savings habits and financial security.

Supporting Financial Wellness Goes Beyond 401(k) Match

Today, 36% of employees say they’re not prepared for an unexpected medical expense, leading them to take on debt or tap a retirement fund to cover the costs.

Compensation is one of the top reasons employees stay or leave an organization, with benefits being one of the top two reasons, next to pay. But salary isn’t everything. With the right portfolio of benefits, employees can make their paychecks go further, giving them more financial flexibility and freedom.

Personalization Helps Employees Unlock More of Their Paycheck

It’s one thing to offer a diverse benefits program. Engaging employees is a whole separate challenge.

84% of employees are confused about their benefits, which often results in low awareness of not only what benefits are available to them but the value they hold. But when the experience is personalized to them, 80% of employees say they feel confident in the benefits they elected.

For example, decision support tools make it easier for employees to enroll in the right benefits by guiding employees through the enrollment process. Businessolver’s decision support asks employees about their risk tolerance, health history, and financial status to help narrow down the field of choices while also bringing forward supplemental benefits to support their needs. As a result, 67% of employees enrolled in a high-deductible health plan with a health savings account; only 19% did so when decision support wasn’t available.

Making benefits easier to understand makes a big difference in how financially secure employees feel and how prepared they are for the expected and the unexpected.

Want to know more about how to boost benefits engagement? Check out this blog about building better year-round engagement.

3 Benefits That Can Boost Financial Stability

Voluntary benefits are gaining popularity with many of today’s employees. And while the obvious ones like 401(k)s, life insurance, and health spending accounts create incredible advantages for employees, there’s a whole host of other options out there that can help offset costs and create a financial safety net.

Our data showed that financial benefits were among the top-used last year—tuition assistance coming in at the top with 56% of employees who had that benefit engaging with it in some form last year. Here are a few more benefits you should consider adding to your benefits portfolio if they’re not in there already:

• Pet insurance: From pandemic hamsters to pre-pandemic dogs, nearly 2 in 3 Americans have a pet. And pets can get costly quick. Pet insurance gives us more flexibility and support to keep our furry friends as healthy as ourselves.
• Disaster insurance: Did you know that most basic home or renters’ insurance policies don’t cover natural disasters? Plus, the resulting stress of navigating home repairs, finding a safe place to stay while you get your home fixed up… that’s a lot to navigate on your own and the expenses can add up fast. Offering supplemental coverage to close policy gaps can offer peace of mind and peace of bank account.
• Identity theft protection: Preventive measures aren’t just for your physical health. Identity theft can have devastating effects on your finances, from ruined credit to drained bank accounts. Putting extra security measures in place not only protects paychecks, but peace of mind.

As we balance our salaries, cost of living, and building a financially secure future for ourselves, benefits can play a big role in giving us more flexibility and stability. Financial stability isn’t just about surviving—it’s about helping your employees thrive and supporting their total wellbeing.

Just as Rachel Green questioned the disappearance of her paycheck to FICA, many employees today are navigating the complexities of optimizing their earnings amidst inflation and financial uncertainties. By offering diverse, personalized benefits and leveraging empathetic technology to enhance understanding and engagement, organizations can significantly impact their employees’ financial stability and overall well-being.

Want to learn more about the value of voluntary benefits? Check out our Pinnacle Partners.