Minimize Employee Stress through Financial Wellness Paired with a 401(k)

Creating a healthy work culture begins at the employee level. When employees practice wellness, they play a key role in shaping work culture. While both physical and mental wellness are a common part of culture in the workplace, financial wellness can be easily overlooked. For some small businesses, it is even a sore subject for business owners who can’t offer as sizable of a salary as a large company. In a 2018 PWC study, financial challenges and money matters proved to be the number one cause of employee stress, with 40% of employees stating it as the top stress over their job. Ensuring your employees have plenty of valuable financial benefits and perks allows them to live a holistic wellness-based lifestyle with lower stress. A financial wellness offering will help your business prevent turnover and boost morale.

Aliat helps small to mid-sized businesses build cost-effective financial wellness programs to assist employees in meeting their individual goals. There are two financial resources we would like to highlight: FinFit and Slavic401k. While both programs help with financial planning, they are very different in how they operate and what they offer to the employee.

 

Financial Wellness Tools through Aliat + FinFit

When business owners consider what kind of financial benefits they want to offer to employees, HSAs and 401(k)s probably come to mind first. While these are excellent benefits, the business owner should also consider financial perks. Perks are optional and usually totally free to employees. These additions to the job offering will help shape your company culture and give you an edge in recruiting. Consider partnering with a third-party financial education program to help your employees practice financial fitness.

Aliat partners with FinFit to offer employees financial resources and education at no cost to the employer. In addition, FinFit offers short-term employee loans for emergencies and the unexpected. These loans are based off salary and are repaid overtime through automatic payroll deductions. The business is not responsible for repayment of the loan in the circumstance that the employee can’t repay the loan. FinFit’s additional educational materials include:

  • A personalized financial assessment
  • Online tools and credit scores
  • Student loan consolidation concierge

 

Retirement Plans through Aliat + Slavic401k

Over half of employees say they aren’t prepared for retirement. Therefore, this is why a retirement plan is a necessity for any business’ benefits package. Of employees who are stressed about their finances:

  • Only 66% are currently saving for retirement
  • 52% have saved less than $50,000 for retirement
  • 54% think it’s likely they will need to use their retirement money for other expenses
  • 31% would be able to meet basic expenses if out of work for an extended period of time

Offering a retirement plan can help reduce stress on the employee, boost morale, and in turn provide valuable benefits for the business owner.

Aliat has teamed up with Slavic 401k to create a Multiple Employer Plan specifically designed for our PEO offering. In many cases, the annual cost of the MEP plan will be 50% or less compared to their current standalone plan.  This plan provides all the benefits of a traditional 401(k) while still allowing the business owner to customize their plan in terms of eligibility criteria, plan entry dates, vesting schedule, matching/profit sharing, etc. In addition, the MEP plan is designed to alleviate some of the administrative responsibilities from the business owner, including:

  • Being covered by the PEO plan audit (which can save the business owner $5,000-$10,000).
  • Passing on fiduciary responsibility to the plan sponsor (Aliat), making compliance easier for the business owner.
  • Handing over 401(k) administration to Aliat and Slavic401k. No more working with a broker, adviser and TPA separately. We have it covered.

FinFit + Slavic401k is the Perfect Pair for Holistic Financial Wellness

Employees will be at different stages of their financial fitness journey. Some may be new to the workforce and are feeling excited to set up their first 401(k). Others might have a built-up 401(k) and need an alternative outlet to take out an emergency loan through a third-party. Aliat makes both FinFit and Slavic401k available to small businesses through our administrative packages, which provide an integrated one-stop shop for all of your back-end needs such as payroll, HR, risk reduction and employee benefits. These packages are customized for your business; you decide which financial benefits and perks to offer based on your employees’ needs.

At Aliat, we believe health is at the core of any business. Request a consultation with one of our Business Advocates to learn how Aliat can help your business on its financial fitness journey.