This article first appeared in BenefitsPro on Nov. 11, 2024, written by Ann Clifford.
U.S. workers feel optimistic about their financial situation despite recent economic ups and downs. More than one-third (38%) of workers anticipate an improvement in their personal economic situation in the year ahead.1
Gen Z workers are even more optimistic, with 53% believing their financial situation will get better in the next year.1
Improving financial health is good news for employers, given the impact financial stress can have on employees and the workplace. The Hartford’s 2024 Future of Benefits Study finds that nearly one-third of employees (31%) report their financial health always or almost always negatively impacts their productivity.1
This is where benefits brokers and consultants can help employers choose a benefits package that meets the needs of their employees.
“Employee benefit strategies play a pivotal role in supporting the well-being of employees, including physical, mental and financial health,” says Laura Marzi, benefits expert and head of marketing for Group Benefits at The Hartford. “Benefits brokers have an opportunity to work with their employer clients to understand what their employees’ needs are and recommend benefits and resources that can help workers improve their financial security.”
Benefits brokers provide expert guidance in two areas essential to boosting employee financial well-being:
- Strategic enhancements to the benefits employers offer.
- Targeted communications to increase employee awareness and utilization of the benefits available to them.
Recommending the Right Mix of Benefits
“The first step is analyzing the gap between an employee population’s needs and the employer’s benefit offering,” says Marzi. “Our research reveals common unmet needs associated with financial security, including the need for safety nets for medical bills and unexpected expenses.”
Many employers offer benefits that can meet those needs, however, there is an opportunity to enhance employee understanding. The Hartford’s research shows that 38% of U.S. workers do not understand the supplemental benefits offered and what they cover.1
Short- and long-term income protection benefits paired with voluntary supplemental health benefits help alleviate the financial stress of medical bills, hospital stays and recovery costs. Supplemental health benefits, including accident, critical illness and hospital cash benefits, provide additional support with cash payments that people can use to make a car payment, pay the electricity bill or cover childcare expenses while they recover.
Non-traditional benefits add another layer of financial wellness support to an employer’s benefits program. Various apps and platforms are available to help employees build personal financial skills, with tools to assist with budgeting, savings and credit management.
Adding Targeted Education and Communications
“One of the best ways brokers can assist their employer clients in improving understanding is by simplifying the benefits language,” explains Marzi. “Thoughtful word choices, relatable stories and an emphasis on the benefits employees receive can significantly influence enrollment and utilization.”
Brokers and their insurance carrier partners have a wealth of experience and best practices that can assist employers in crafting effective benefits education strategies. Designing a year-round communications strategy that limits jargon, optimizes storytelling and shares information through various channels, like email, webinars and in-person meetings, helps employers build understanding and greater appreciation of their benefits programs.
Today’s brokers play a critical role in helping employers support the financial health of their employees and boost feelings of optimism about future financial well-being. In addition to recommending the right mix of solutions for the specific employee population, brokers provide valuable insights to shape the benefits communication strategy, driving increased enrollment and utilization.
