Transform Employee Benefits into Tools for Financial Success

Why Employee Benefits Are Essential for Financial Wellness and Risk Management

Financial wellness is no longer a luxury in the modern workplace—it's a necessity. With living expenses, debt, and healthcare costs all on the rise, employees are navigating an increasingly complex financial landscape. While most employers offer traditional benefits like salaries, retirement plans, and health insurance, many fall short in helping employees utilize these benefits effectively. This gap presents a significant opportunity for companies to make a real impact on the financial well-being of their workforce.

A recent study with Origin showed that 93% of employees want financial guidance and support from their employer. Without it, financial stress increases, morale dips, and productivity declines. By offering comprehensive financial wellness programs, companies can address this need head-on and reap the rewards. According to Origin, employees who receive financial wellness support increased their 401(k) contributions by 42% and their HSA or 529 plan contributions by 23%. For employers, these benefits translate to an average of $5,600 saved per employee in turnover costs.

What Are Financial Wellness Benefits?

Financial wellness refers to an employee's ability to manage their current and future financial needs effectively. Just like physical and mental health, financial health significantly impacts overall well-being. An employee who is confident in managing their finances is more likely to be productive, engaged, and satisfied at work.

Key elements of financial wellness benefits include:

1. Retirement Savings Support:
   Financially stressed employees may withdraw early from their retirement accounts, unknowingly harming their long-term security. The SECURE 2.0 Act allows qualified withdrawals under certain conditions, helping employees avoid penalties by repaying the withdrawn amount. Employers can further encourage retirement saving through automatic enrollment in 401(k) plans.
2. Benefits Utilization Guidance:
   Choosing the right benefit options can be overwhelming. HR and Benefits teams can offer workshops, webinars, one-on-one consultations, or online tools to help employees make informed decisions aligned with their financial goals.
3. Estate Planning Assistance:
   Only 32% of Americans have an estate plan, yet it's crucial for reducing financial stress and protecting long-term security. Providing resources for estate planning empowers employees to prepare for the future confidently.

Why Financial Wellness Benefits Matter

Supporting financial wellness doesn’t just help employees—it also benefits the business. Programs that address financial health lead to:

• Higher Productivity: Employees free from financial worry can focus better on their work.
• Improved Morale: Financial security fosters a positive work environment.
• Reduced Turnover: A financially stable workforce is less likely to seek employment elsewhere.

Financial wellness benefits go beyond a paycheck, offering real, long-term support. By investing in these programs, employers create a more resilient and engaged workforce, strengthening their company’s overall risk management and financial health.

How RMC Group Can Help

At RMC Group, we understand that supporting your employees’ financial wellness isn’t just about providing benefits—it’s about creating a foundation for their success both at work and in life. Our team specializes in crafting comprehensive employee benefits programs that address financial wellness, from retirement planning to innovative risk management solutions. By partnering with us, you can empower your employees with the tools and education they need to make informed decisions, fostering a more engaged and productive workforce.

Contact us today to learn how we can help your business prioritize financial wellness while managing risk. Visit our website at rmcgp.com or call us at 239-298-8210 to get started.