Mind-Body Wellness

Art by Andrea D’Aquino

Lorna Sabbia, head of retirement and personal wealth solutions for Bank of America, says, when employees who feel financially well are compared with those who feel less well, a mix of short- and long-term factors have contributed directly to either feeling.

For example, when compared with employees who are not financially well, those who are are more apt to say they can effectively manage their day-to-day expenses. They are more apt to say their savings for retirement are on track and that they are more able to pay their bills and save for future goals at the same time.

Given that most of Americans’ income comes from the workplace, the availability of generous and well-designed programs that help address employees’ overall financial situation can have a direct impact on how well these people feel, Sabbia explains. She points to internal polling data, published in Bank of America’s “2019 Workplace Benefits Report,” showing that employers are embracing this fact, as 53% reported offering some type of financial wellness program last year, compared with 24% in 2015.

Sabbia notes three primary drivers of employee financial stress that affect even those who otherwise feel secure in their employment and financial situation. These are, first, employees’ potential inability to manage health care costs; second, their outside obligations as a caregiver, either for children, a spouse, aging parents or others; and their issues arising from a workplace insensitive to diversity and inclusion.

According to the Bank of America analysis, current health care expenses are not employees’ only concern on those fronts. Medicare may cover only up to 65% of certain employee medical costs, the report advises, so they will need to plan for paying future health care premiums and potentially significant out-of-pocket costs. Given this, one obvious benefit to explore in the workplace is health savings accounts (HSAs), as well as health-care cost-management training and support.

At a higher level, experts agree, financial wellness programs are most effective when the different points of focus are carefully coordinated—and when employees see that their employers genuinely care about their financial well-being.