In times of economic hardship, the impact on your employees can be profound. Financial stress, uncertainty, and diminishing morale can all disrupt productivity and well-being in the workplace. As a leader, it’s crucial to recognize these challenges and take proactive steps to support your team.  

 

Helping your employees navigate these difficult times not only fosters loyalty and trust but also ensures the continued success and stability of your organization. Today, we share how you can make a meaningful difference. 

woman smiling at desk

The Impact of the Economy on Employees  

 

Life’s necessities can pose a significant burden on your employees, as evidenced by the U.S. Census Bureau’s Household Pulse Survey in March 2023. Over 38% of Americans found it “somewhat” or “very difficult” to afford usual household expenses. Although inflation percentages have slowed some since then, other costs—such as car and home insurance in Florida, for example —have skyrocketed. 

 

Adding to this financial strain, 2023 saw a 14% increase in employees taking loans from their 401(k) plans according to an annual report by retirement fund administrator Empower. The report further revealed that 27% of respondents were “very or somewhat likely” to take out a loan or a hardship withdrawal from their retirement plans in the next six months. 

 

Relief for Employees 

 

Employees are looking for some relief. Fortunately, our team at Vested HR has a few tools that can help your employees in their times of need: 

 

#1. Easy and Inexpensive Pay Advances to Your Employees: Most people have had financial stress in their lives at times – and many have faced financial emergencies where a payday advance would have a big impact on their families. Now, Vested HR has a financial partner that helps employees access a portion of their earned wages whenever at a nominal cost to the employee. There is no cost to you, no risk to you, and no work for you, as the employer, to offer this to your employees. But it can bring peace of mind to them. 

 

#2. 401(k) Loans: For our clients that have 401(k) with Vested, your employees can take out loans against their 401(k) balances and repay themselves versus paying interest to a third party.  If you don’t have a 401(k) plan with Vested, you should consider one to allow your employees to save (in pretax dollars) for their retirement or a rainy day. There is no cost to you to offer a 401(k) plan. 

 

#3. Ancillary Benefits Offerings: We offer plans that pay employees money in an unfortunate event such as an illness or accident.  These plans are not expensive and you, as the employer, do not have to contribute any money to them, but it gives your employees cash to help them when they cannot work. 

 

#4. Free Virtual Care: For our clients on Vested’s master medical plans with Angle Health – did you know your enrolled employees have access to free virtual care – including both medical and mental care?  Using telemedicine can help save the employee on out-of-pocket costs.  Plus, having free virtual mental health care can help staff deal with financial stress. 

 

Read More > Exploring Vested HR’s Healthcare Options 

 

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We’re In(Vested) In Your Team 

 

Supporting and taking care of your employees during challenging economic times is crucial for maintaining a productive and engaged workforce. By offering ancillary benefits, pay advances, and free virtual care, you can show your commitment to their well-being and financial stability. These resources not only provide immediate relief but also contribute to long-term employee satisfaction and loyalty.  

 

Contact our friendly team at Vested HR today to learn more and let us help you navigate these uncertain times together.

 

 

 

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