The employee benefit portfolio that may have worked well in
the past may not adequately address these needs going forward. By
investing in planning and some resources, however, business owners can both
demonstrate their concern for employees and solidify if not increase worker
morale and productivity at the same time. Here are a few programs
employers can implement to show their support:
Emergency Savings Accounts
By creating an emergency savings account (ESA) for
employees, business owners can help workers save for financial emergencies by
allowing deposits of after-tax dollars from their paycheck into a savings
account. Workers can then withdraw the funds as needed via a debit card
or electronic transfer. An ESA eliminates the need for workers to have the
discipline and time to manually save the money. As a bonus, employers can
offer incentives to employees, such as a matching deposit (up to specified
limits).
Lifestyle Spending Accounts
Lifestyle Spending Accounts (LSA) provide a method for
employers to assist their employees in paying for health, wellness expenses and
even other costs that are not typically covered under a group health insurance
program. Many business owners like LSAs since they can decide which expenses
are reimbursable and how much each employee receives. Unlike flexible spending
accounts, employers fund the LSA with money that is taxable to the employee
after it is spent.
Student Loan Assistance
Companies can design programs to either make tuition
payments to the loan servicer or directly to the employee. Eligible
candidates can be required to have been working for the company for a specified
minimum period of time or have successfully completed a degree.
Typically, an employer matches annual payments made by the student and can set
a lifetime cap. As an example, a company can match annual payments up to $2500
per year and/or a lifetime cap of $10,000.
Financial Guidance Resources
These programs, sponsored by an employer, can provide access
to resources and tools focusing on assisting employees in their effort to gain
financial literacy. The business owner may utilize a wide range of
options, including a partnership with financial consultants that can provide
workplace seminars, speaking with employees concerning their financial needs
and educating the staff on budgeting, saving, investing and managing debt.
The Lower Bucks County Chamber of
Commerce offers its members access to My Benefit Advisor as a solution for
employee benefits, including voluntary offerings. For more information about My
Benefit Advisor, visit our website at lbccc.mybenefitadvisor.com or contact
Marlon Richardson at (215) 790-3640.
