Beyond the Paycheck: How Financial Security Drives Employee Retention
Beyond the Paycheck: How Financial Security Drives Employee Retention
Explore how Optifino's innovative platform provides financial security and flexibility that today's employees demand
In today's competitive landscape, employee retention has become a significant challenge for employers worldwide. The upheaval brought about by the Great Resignation shifted workforce dynamics, and employees now have heightened expectations of their employers. They are seeking more than just a paycheck; they desire comprehensive benefits that enhance their financial security and future. Nearly 69% of employees say they are more carefully reviewing their financial benefits, up 9% since 2022. However, the challenge for many companies is providing more employee financial benefits at no cost to them, with one in four HR leaders sharing that they are trimming employee financial benefits to prepare for a possible recession. This means companies have an opportunity to turn to dynamic assets like permanent life insurance, which can help build towards long-term financial goals and provide a safety net for employees. We will explore how tailored permanent life insurance can significantly improve retention, and how concierge care with no added costs to the company can be pivotal in this new era.
Understanding the New Expectations of Talent
With 80% of HR professionals struggling to find qualified candidates and 61% of CEOs acknowledging hiring challenges impact the ability to operate at full-capacity, the need to adapt is clear. The modern workforce is demanding more comprehensive benefits that address their unique needs, specifically benefits that support their financial well-being. A notable concern for both employers and employees is financial stress, which is known to impact productivity and job satisfaction. Approximately two-thirds of employees report that financial worries negatively affect their work and personal life, underscoring the need for benefits that can alleviate these stresses. HR leaders understand this and want to be able to provide more, with 83% of HR leaders concerned about the adverse effects of employees' financial issues on performance.
Employees who are satisfied with their benefits are twice as likely to be satisfied with their jobs and 70% more likely to be loyal to their employer. According to TBWA, nearly two-thirds don’t use their benefits because they are not tailored to their needs. In light of this, providing benefits that genuinely meet the varied needs of employees isn't just beneficial—it's essential for retention. Optifino directly responds to the 88% of HR leaders who report employees requesting benefits not currently offered, offering a flexible and responsive solution that can be tailored to meet the evolving demands of the workforce.
Optifino: A Strategic Solution for Financial Security
Our concierge care takes the time to understand an employee’s financial goals and then inputs those into the platform to design the most personalized life insurance policy. Our transformative approach to life insurance creates a more holistic financial strategy that provides benefits within an employee’s lifetime and for their beneficiaries. Our Wealth Legacy Architects, paired with our technology, enables employees to integrate life insurance with their financial plan, providing a safety net that grows with their needs and can be accessed in retirement as supplemental tax-free income. Understanding that life insurance is not set-and-forget, we provide a lifetime of aftercare with annual reviews of an employee’s policy to ensure it continues to perform in alignment with their goals—creating peace of mind about the future for every employee.
With a tailored life insurance policy, employees can plan ahead for them and the welfare of their loved ones, reducing the stress associated with future financial uncertainties. With only 55% of employees feeling financially healthy now — a fall from 64% in 2022, there is a big opportunity to introduce innovative approaches to financial planning that are streamlined, tech-optimized and easy to understand. Nearly 85% of employees report that they do not use their benefits because they are confusing, so we place a big emphasis on education. We take the time to ensure that clients understand the spectrum of policy design options and the many goals the different policy types accomplish. Below is an example of a piece of marketing collateral that we provide to our clients so they understand the many ways in which we can help.
As you can see, we not only address the immediate financial concerns of employees but also assist in building their long-term financial stability. We are able to provide tailored solutions that prepare for longevity, comfort in retirement, and minimize taxes with no HR administration needs and at no cost to the employer. Our expert Wealth Legacy Architects and Wealthcare back office support means employees are educated and supported every step of the way, in the goals discovery, policy design process, and the rest of their life. Providing a retirement solution that can address the needs of diverse age groups and backgrounds isn’t just a good idea—it’s a strategic business decision. Optifino stands at the forefront of this change, offering a robust life insurance solution that not only meets but anticipates the financial needs of employees, promoting greater satisfaction and loyalty. By adopting such tailored financial benefits, companies can better support their employees, leading to improved retention rates and a more motivated workforce.
Key Takeaways
- Employee expectations have evolved to prioritize flexibility, work-life balance, and financial security.
- Financial stress is a major concern impacting employee productivity and job satisfaction.
- Tailored benefits like those offered by Optifino can significantly enhance employee retention and loyalty.
- Optifino's life insurance platform addresses key areas such as family banking, retirement, and estate planning, providing a comprehensive solution for today’s workforce.