Chris Taylor

NEW YORK, (Reuters) – When companies consider the financial well-being of employees, they may think about basic questions like salaries, retirement benefits, and coverage for health.

All good – but not good enough.

These days true “financial wellness” gets into broader issues like planning help, student debt, tuition reimbursement, and dozens of other potential stress points.

Financial wellness head Morgan Stanley (NYSE:), Krystal Barker Buissereth is steering companies toward a more holistic understanding of where workers might be hurting – and how a few financial lifelines can help people in trouble while also boosting an employer’s talent attraction and retention efforts.

She spoke with Reuters about the ways benefits can change employees’ lives.

Q: What is financial wellbeing?

A: Helping individuals to put pen and paper to what really matters. How can you identify the obstacles that are preventing your financial goals from being achieved and what steps should be taken to fix them?

Most people don’t even have a financial plan, so it’s like playing a game of darts without a dartboard.

The Great Resignation is a time when people require help in many areas beyond just retirement. This could help them manage their short-term financial needs, such as budgeting. This could help them to set up emergency savings for a time of healthcare need. You could use it to help pay off student debt. Financial wellbeing is all-encompassing.

Q: Student loans are one of the most popular trends currently. Why?

A: Students are the largest growing segment of household debt. This is because it can get in the way planning for financial milestones.

If I’m stressed out about student debt, that may delay my retirement saving. Companies are trying to ease some of this stress by offering one-on-one coaching or direct contributions.

Q: Is this also a diversity problem?

A: Diversity is a key part of the solution. It is women and people from underrepresented groups who have outstanding debt.

You want your company to be able to attract diverse workers.

Q: Do some companies prefer? Target The headlines are all about tuition benefits.

R: Although almost half of all companies offer tuition reimbursement and professional development, we’re seeing more coverage for full tuition.

There is a lot of competition for talent. Benefits can make your company stand out amongst the rest. It’s one of the best tools in your arsenal.

Q: What are the financial results of people right now, I assume you’ve seen a lot.

A: It is clear that people are very upset. COVID revealed that some populations were more affected than others.

This period is a wake up call, regardless of where you stand on the continuum. A stat showed that 65 percent of household incomes have been lost. When you ask people what is causing them stress, the number-one answer is financial concerns – more than health, or work, or family.

Q: Will there be an upward pressure on wages?

A: An extra boost in salary can go a long way, especially for those just starting out, but it’s just one piece of the equation in the broader overall picture.

Q: There are a lot of changes happening in this arena, so what’s next?

A: There is no one-size-fits-all program, so we do anticipate more ‘cafeteria’-style plans, with a menu of different benefits that employees could pick and choose from. That’s the gold standard, but many companies haven’t even started with the first items on the menu. They have a retirement benefit, and that’s about it.

The employees are in pain and need assistance. We believe that the companies will begin to fill more of their financial needs.

Q: What lessons can we learn from the financial crisis of recent years?

Q. This is similar to 2008-2009. It has opened our eyes. This might mean that we don’t have as much financial protection as we think.

Employers have realized that it is more than just about the salary. Employers need to tie their benefits to their objectives and human resources goals so employees bring their best to work.