Once the worst of the COVID-19 pandemic is behind us, what will the new working world look like? It's a question that many HR teams have started to ask.
In a recent piece for PLANSPONSOR, retirement experts weigh in; A significant shift towards holistic financial wellness and increased importance on emergency savings is coming to the workplace, they say.
This rings especially true for the Millennial workforce, which has now experienced three major market downturns—the dip in 2001, the Great Recession in 2008 and the downturn due to the coronavirus pandemic, says Kevin Boyles, vice president and business development director at Millennium Trust. - PLANSPONSOR
Through the COVID-19 crisis, workers with emergency savings accounts will have drained them dry. If employees had retirement funds, they may have tapped into them to cover the essentials.
The result is a workforce that's coming out the other side of this crisis with a different mindset around their money. Employees will be looking to rebuild their rainy day fund and get back on track for their financial future. And, they'll be looking to their employer for help.
On top of emergency savings, Jason Dorsey, a global researcher with an emphasis on the Millennial and Generation Z workforces at the Center for Generational Kinetics (CGK) expects Millennials to place an emphasis on core workplace benefits—not the pet insurance and catered lunch perks typically associated with the younger workforce.
“When people go through times of tremendous emotional, physical and financial stress, it becomes clear what’s actually important,” Dorsey says. “In the long term, benefits will be a decisive characteristic of the types of companies that Millennials will want to work for.” - PLANSPONSOR
Many employers will be reevaluating their benefits strategies. When it comes to Financial Wellness, biased education from their 401(k) provider will no longer "check the box". Innovative workplaces will look towards holistic, independent programs that offer expert financial guidance at scale. Workers will want to know that their employer has their back, and a priority will be placed on getting financially prepared in case a disaster happens again.
As the global workforce moves beyond the pandemic and begins to rebuild, the renewed focus on employee financial wellbeing will be beneficial for all.
For the original PLANSPONSOR article, click here.