MONDAY, AUGUST 21, 2023 North Bay Business Journal 23

EDITORIAL & OPINION

POWER OF TWO BY ANDREW MCNEIL AND ROSARIO AVILA

6 keys to a financially sound employee benefits package

At first glance, Employee Benefits
Programs appear to be a “dime a dozen,
one-size-fits-all” proposition. Employers
offer health, dental and vision plans to be
competitive. Today, in addition to offering
competitive salaries, organizations recog-
nize that one crucial aspect of a solid bene-
fits package is the role it plays in promoting
employee financial security.
How can a benefits program build em-
ployee financial security? Here is our take:
INSURANCE, WELLNESS PROGRAMS
A healthy workforce is a productive work-
force. Offering well-rounded and expanded
health insurance plans safeguard against
catastrophic medical expenses.We see again
and again that Access to preventive care and
medical remedies leads to early detection of
issues when treatments are less costly. This
helps to significantly reduce the financial
burden on employees, allowing them to
focus on their work without worrying about
health care costs. Taking it further, wellness
programs — including gym memberships,
counseling, preventive care and health
screenings — encourage employees to adopt
healthier lifestyles. This prevents chronic
health conditions, and in the long term,
contributes to employees' financial security.
FINANCIAL WELLNESS
A workforce that feels secure in their
position — both in physical and financial
health — is more productive. When the
burden of worrying about affording health
care or planning for the future is reduced,
employees have more energy and peace
of mind to focus on the work. Likewise,
investing in your team builds a culture that
nurtures loyalty and creativity, thereby
reducing turnover and the costs associated
with recruitment and training. Devel-
oping a reputation for a commitment to
development attracts a talented workforce.
Employees also want a clear career path
and opportunities to move up the ladder.
However, if your more seasoned staff isn’t
retirement-ready, they will stay in their
positions longer than they would otherwise,
limiting growth opportunities for others. In
these situations, workers ready for more
challenges are blocked from moving up.
This has a cascading effect throughout an
organization, which can cause talented
employees to leave for greener pastures.
RETIREMENT, INVESTMENT PLANS
Building a financially secure future is
a huge priority for most people. Benefits
packages that include retirement savings
plans such as 401(k) or pension plans are
important in promoting long-term financial
security. These plans allow employees
to contribute a portion of their earnings
to a tax-advantaged retirement account.
When employers match a percentage of
that contribution, it serves as an additional
incentive to save for retirement. The com-
pounding of long-term investments aids
employees in building a nest egg, helping to
ensure they have a comfortable retirement,
worry less about their future and are much
less likely to face financial difficulties.
FLEXIBLE WORK ARRANGEMENTS
Work-life balance is particularly import-
ant as we recover from the stressful years
of COVID. We understand that flexible work
arrangements allow employees to better
manage their personal and financial com-
mitments. These include such initiatives
as remote work options, variable hours or
compressed workweeks. Providing greater
control over schedules, where feasible,
leads to less stress and more productivity.
In addition, reduced commuting costs and
lowered child care expenses resulting from
working hours more fitting for families fur-
ther contribute to overall financial stability.
EMPLOYEE ASSISTANCE PROGRAMS
Employees' financial struggles can ex-
tend beyond the workplace and impact their
overall mental and emotional well-being.
Employee assistance programs (EAPs)
often provide access to confidential support
for team members and their families. These
programs can help individuals navigate
financial challenges by offering advice on
debt management, budgeting and finan-
cial planning. Most EAPs also connect to
resources to address specific needs. By
confronting stress proactively, EAPs con-
tribute to, and promote, job satisfaction and
reduce the risk of financial crises.
EDUCATIONAL BENEFITS
Tuition reimbursement or access to
skill-building courses allow employees to
improve their qualifications and increase
potential for career growth and higher
salaries. Further, investing in the ongoing
education of employees expands their
skills and empowers their commitment
to your organization, enhancing financial
security in the long term. Organizations
that support continuous learning create
an environment of growth, with employees
who feel valued and motivated to stay with
the company in the long term.
Investing in your employee’s financial
well-being is an investment in the financial
health of your organization itself. It is truly
a win-win for everyone.
Andrew McNeil (andrewm@arrowbene-
fitsgroup.com, 707-992-3789) and Rosario
Avila (rosarioa@arrowbenefitsgroup.
com, 707-992-3795) are senior benefits
advisers at Arrow Benefits Group in
Petaluma.

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