Despite the slowing pace of record inflation, many Americans are still feeling the pinch in their wallets, with a staggering 70% of respondents in a recent American Psychological Association survey reporting financial stress – the highest level seen in the last decade. Concurrently, a PwC survey revealed that nearly 60% of employees are struggling financially, which is having a ripple effect on various aspects of their ___s, including sleep, mental health, self-esteem, physical health, and relationships (HR Executive). As employers have become more focused on employee wellbeing, they are offering comprehensive benefits packages, including healthcare and retirement contributions.
However, according to the 2024 Alight Winning with Wellbeing report, fewer than half of employees surveyed utilize these benefits… citing unaffordability and lack of value as the primary reasons (HR Executive). A key factor in increasing benefits utilization and improving employee wellbeing is effective benefits communication.
As Austin notes, “Take the 401(k) plan. By its very nature, the 401(k) plan is filled with jargon, so you have to make it more approachable.” For low-income workers, who may be the first savers in their families, understanding complex benefits terminology can be a significant barrier. To address this issue, Austin suggests that artificial intelligence can be leveraged to offer personalized benefits information and recommendations… mirroring the consumer interactions employees experience outside of work.
This expertise would help employees better grasp the value of their benefits and make informed decisions about their financial wellbeing. To further ensure that employees are aware of and take advantage of the benefits offered to them, employers must adopt a more conversational tone when communicating benefits. This can be achieved through a combination of digital and in-person communication channels, as well as ongoing education and support.
By prioritizing effective benefits communication and leveraging technology, “employers can empower their employees to make the most of the benefits offered,” “ultimately leading to improved financial wellbeing and a more supportive work environment.” As the old adage goes, “an informed employee is a happy employee.
The Role Of AI In Boosting Employee Wellbeing Benefits Access
• Despite slowing inflation, 70% ofAmericans report financial stress, and 60% of employees are struggling financially, affecting their sleep, mental health, and relationships. This widespread financial struggle is not limited to any specific demographic. 2. Despite employers increasing focus on employee wellbeing through comprehensive benefits, many employees (less than half) are not utilizing the healthcare and retirement benefits offered to them. The top reasons cited for not utilizing these benefits are unaffordability and lack of value, indicating a disconnect between what is being offered and what employees need. 3. Effective benefits communication is a key driver of higher benefits utilization and better employee wellbeing. This can be achieved through the use of artificial intelligence, which can offer personalized benefits information and recommendations, making complex benefits more accessible and relatable to employees.
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Employee Financial Wellbeing
Employee financial wellbeing is a pressing concern for many organizations today. As HR Executive notes, a staggering 70% of Americans report financial stress, with a ripple effect on various aspects of their —s. Employers are therefore increasingly recognizing the importance of providing comprehensive benefits packages to support their employees’ financial wellbeing.
But simply offering these benefits isn’t enough. Effective benefits communication is key to increasing utilization and improving employee wellbeing. “Take the 401(k) plan, for instance,” saysAustin. “By its very nature, the 401(k) plan is filled with jargon, so you have to make it more approachable.” AI can play a crucial role in making benefits information and recommendations more personalized and accessible to employees.
According to the 2024Alight Winning with Wellbeing report… fewer than half of employees surveyed utilize the benefits offered, citing unaffordability and lack of value as the primary reasons. This is where HR Executive acknowledges that employers must adopt a more conversational tone when communicating benefits, using a combination of digital and in-person channels as well as ongoing education and support.
For low-income workers, who may be the first savers in their families, understanding complex benefits terminology can be a significant barrier. AI can help bridge this gap by offering personalized guidance and recommendations… mirroring the consumer interactions employees experience outside of work. By empowering employees to make informed decisions about their financial wellbeing, employers can ultimately lead to improved financial wellbeing and a more supportive work environment.
As employers strive to create a more supportive work environment, they must prioritize effective benefits communication. This requires a holistic approach, considering the unique needs and concerns of each employee. By doing so, employers can increase benefits utilization, improve employee wellbeing, and ultimately drive business success.
Ultimately, it’s clear that employee financial wellbeing is a critical investment for any organization. As the old adage goes, “an informed employee is a happy employee.” By prioritizing effective benefits communication and leveraging technology, “employers can empower their employees to make the most of the benefits offered,” “leading to improved financial wellbeing and a more supportive work environment.”
**Benefits communication is key**: Employers must adopt a more conversational tone when communicating benefits, using a combination of digital and in-person channels, as well as ongoing education and support, to increase benefits utilization and improve employee wellbeing.
This approach can help reduce the feeling of information overload and increase engagement. Firstly, employers should use a combination of digital and in-person channels to communicate benefits. This could include posting information on internal communication platforms, hosting benefits fairs or workshops, or even one-on-one meetings with a designated benefits representative.
By using multiple channels, employers can cater to different learning styles and preferences, ensuring that all employees have access to the information they need. Secondly, employers should prioritize ongoing education and support. Benefits are not a one-time decision, but rather a continually evolving aspect of an employee’s —. Employers should provide ongoing education and support to help employees stay informed and make the most of their benefits.
This could include regular town hall meetings, benefits workshops… or even online resources and tutorials. Employers should also use storytelling and real—- examples to illustrate the benefits in action. For example, showcasing how a particular benefit has helped a colleague or sharing a testimonial from an employee who has used a benefit to achieve a financial goal.
This approach can help make the benefits more relatable and personal, increasing employee engagement and utilization. Another key aspect of effective benefits communication is transparency. Employers should be open and honest about the benefits they offer… including any limitations or restrictions. By providing clear and concise information, employers can reduce confusion and uncertainty, making it easier for employees to make informed decisions.
Lastly, employers should also recognize that benefits communication is a two-way street. They should actively engage with employees to understand their needs, concerns, and feedback, and use this information to inform their benefits strategy. By doing so, employers can create a more personalized and responsive benefits program that truly supports the wellbeing and success of their employees.
^^, effective benefits communication is critical for increasing benefits utilization and improving employee wellbeing. Employers must adopt a more conversational tone, use a combination of digital and in-person channels, prioritize ongoing education and support, use storytelling and real—- examples, and prioritize transparency and employee feedback.
By doing so, employers can create a benefits program that truly supports the wellbeing and success of their employees, leading to increased job satisfaction, “reduced turnover,” “and improved overall performance.”
