Financial stress and mental health are inextricably linked. Combined, they affect construction workers as much as those in any other industry.
Wisconsin ranks in first place among U.S. states for the lowest prevalence of mental illness and highest rates of access to care. But construction workers face any number of stressors on their emotional health, and financial issues are top among them.
Workers in the construction industry earn an average of $31.44 an hour. But inflation and higher costs make it harder than ever to sufficiently stretch that paycheck. Plus, financial instability can be caused by the seasonal layoffs that are common.
Wages are table stakes for any employer these days, and so it is with construction. But to create a quality employee experience (QEX) that will clinch the deal in attracting and keeping workers, construction firms should look at programs that address their points of pain. Integrating financial wellness offerings into their broader wellness programs is a step in the right direction.
Too many employers, though, fail to respond to the role of employees’ financial stress in their overall wellness. One survey found that over 80% of workers said they’d had a positive experience with financial wellness programs offered by their employers. But only a quarter currently have access to them.
Those looking to address the issue will have the best results – creating benefits that build the optimal employee experience – by focusing on four considerations.
1. Assess where you’re at. A program designed to support employees’ financial health will be multi-faceted, but it takes a studied evaluation to determine where you’re at and what’s lacking. A retirement plan can be an important way to stimulate improved financial planning and savings for the long term, but merely having one isn’t sufficient. Dig deep: what’s the participation rate and why? Does the 401(k) feature an automatic opt-in? How does the level of the employer match influence participation. Also look at utilization rates of typical benefits with a financial role, like health savings accounts to see if these could be tweaked.
2. Throw out the cookie cutter. Any wellness program, not to mention benefits strategy, is going to get better participation if its offerings are tailored to the particular needs and issues of individual workers. Figuring out what those are and responding appropriately takes some digging. Surveys are one way to go. But increasingly effective are persona analyses that focus on the goals, behaviors and expectations of employees at different stages of their careers, their life stage, and their experience with benefits (which influences utilization). The aging of the construction workforce, for example, is reason to check on barriers to retirement preparedness and respond accordingly. Likewise, responding to financial pressures faced by younger workers – like stretching a shrinking dollar to cover mortgages, rent and child care – could lead to programs that benefit recruitment.
3. Solutions should be layered. A financial wellness program should align with the overall wellness program and be built on layers of solutions, not just the easiest to offer. This means going beyond Personal Finance 101 to offer solutions that really respond to where people are at today. Think benefits that simplify lives and/or allow for savings, like auto, home and renters insurance. Or offerings like workplace loans or early wage access programs are valuable in helping financial stressed employees avoid the dangers of payday loans.
4. Communicate early, often. The issue of low utilization rates often stems from launching benefits without sufficient explanation of how they work and how to get the most out of them. And even the best explanations will get lost in the shuffle if the channels used to get them out to employees don’t fit with how they want to hear about the programs. Messaging should be tailored to the audience, both in what is said and how, and with ease of access (Texts? A website optimized for mobile? Voicemail? Face to face?) the priority.
About the author
Sean Coykendall is Vice President of Commercial Insurance and Employee Benefits Consulting for global Top 5 insurance brokerage Hub International in Wisconsin.