Regardless of the size of their business, most employers are committed to providing a comprehensive, affordable benefits package that meets the needs of their workers. However, this often can be more of a challenge in companies with fewer than 100 employees.
Bank of America examined the current state of these businesses in its annual Workplace Benefits Report. “Although significantly up from six months earlier, fewer employees at small companies say their financial wellness is good or excellent compared to larger companies and lower than the overall average,” it found.
In companies with between one and 49 employees, one-third of workers rate their financial wellness as good or excellent, compared to nearly half of employees overall. This number increases to 40% in companies with 50 to 99 employees. Workers at the smallest companies are the only segment that doesn’t place saving for retirement as the top financial priority but say paying off credit card debt is more important. When asked which financial wellness and educational resources would help them better manage their finances, employees rated retirement education and planning and developing financial skills and good financial habits the highest.
Although most small companies feel extremely or somewhat responsible for their employees’ financial wellness, less than half offer financial wellness programs. The most frequent resources provided by small companies that do offer financial wellness programs are Information on 401(k) retirement plans; evaluation and advice from a professional; and online financial tools, calculators and scores to measure wellness and identify steps to improve. Employers recognize that providing tools to enhance financial wellness often leads more satisfied and engaged employees and greater retention.
Although early three in four employers feel responsible for ensuring that their employees understand health care needs in retirement, a smaller number educates or offers guidance, and only about half offer a way to save for future health care costs. When it comes to health care needs in retirement, less than one-third of employees have access to a health savings account, and nearly half are not actively saving for future health care expenses. Although many are unsure of how much Medicare will cover, more than half of employees expect to pay less than $5,000 out of pocket each year in retirement.
Both employers and workers would like to have expanded benefits. The top five priorities for employees in the next three to five years are four-day work weeks, guaranteed income plan benefits, wellness reimbursement, flexible return-to-office options and sabbaticals. The priorities for employers are four-day work weeks, wellness reimbursement, mentoring, family care assistance and guaranteed income plan benefits.
“The responses from these employers and employees provide us with insights into more relevant, meaningful and inclusive programs and resources to help you evolve your benefits offerings,” the report said.