Key to Retention: Aligning Employee Benefits with Financial Wellness During Life Events

When benefits are seen as integral to an employee’s financial wellness strategy, they become more than a perk — they become a lifeline.

Shelby C. George, J.D., CEBS

CEO, PERKY

Aligning benefits with employees’ financial goals at monumental life events can help alleviate this burden, fostering loyalty and enhancing job satisfaction. Life events, such as the birth of a child, caregiving leave of absence, marriage or divorce, medical debt, purchasing a new home, and starting a new job are pivotal moments that can define an employee’s perception of their workplace. These events often bring financial and emotional challenges that can feel overwhelming without the right support. Forward-thinking organizations can play a transformative role by customizing benefits communications to ensure employees are fully informed about the resources available to them. Ultimately, you’re increasing employee awareness and utilization of the benefits your organization has strategically invested in. 

Practical steps for HR professionals

1. Map the Employee Journey: Begin by mapping out the employee journey for significant life events. Identify key milestones, challenges, and opportunities where tailored support can make the most impact. For example, consider that welcoming a new child has stages like early planning for leave, the leave period itself, and the return-to-work transition. Pinpoint what available resources, such as EAPs, estate planning, or childcare stipends, the employee can leverage at different stages of their preparations. By understanding this journey, HR professionals can ensure benefits align with employees’ real-world needs at the times they need them most and they’re not stuck looking elsewhere for solutions.
2. Integrate Digital Financial Resources: Offer access to digital financial wellness tools and resources specifically connected to the life event at hand. For example, when welcoming a new child, parents are most concerned about access to paid leave and projecting childcare costs. By providing tailored financial support and education within the context of the employee’s immediate needs, organizations can strengthen the perceived value of their benefits package while easing the financial stress of major life milestones.
3. Empower Managers: Equip managers with best practices to provide emotional support and effectively manage transitions for both the employee and the broader team that may be affected by a life event. These resources should include guidance on three critical areas:
   1. Compliance — reminders of the manager’s role and when to involve HR
   2. Employee-led communication — tips on how to support the employee throughout their life event by letting the employee take the lead on verbalizing their preferences
   3. Team-based support — tactics for maintaining team morale and productivity amidst the change. Tools such as empathy and communication training videos, planning checklists, and quick-reference guides for relevant company benefits foster a collaborative approach between employees and managers. 
4. Measure Impact: Use feedback loops to gauge how well your benefits meet employees’ financial needs. Metrics such as retention rates, employee satisfaction scores, pre- and post-surveys specific to the life event, and financial stress levels can help you fine-tune offerings.

A financial and cultural impact

By positioning employee benefits as a cornerstone of financial wellness — especially during significant life events — HR professionals will see an increase in benefits utilization and can mitigate turnover costs while enhancing workplace satisfaction for both employees and managers. Employees who feel supported through major milestones are more likely to remain engaged and loyal to their organizations.