These days, the role of a broker involves more than justrecommending the right insurance products for a business. Employersvalue brokers who function as consultants, helping them meet theircompany’s HR objectives.

Among those HR objectives are boasting a competitivebenefit package to attract and retain top talent; meeting the needsof a diverse work force; and keeping employees happy, healthy andproductive.

So, brokers obviously propose core benefits and then round outthe package with voluntary offerings. Both traditional andnon-traditional voluntary benefits help employers meet the diverseneeds of their work force by letting the employees choose what’smost important to them. One of those non-traditional voluntarybenefits – employee purchase programs – is also helping employerswith another HR goal – keeping employees productive.

Employee productivity is a challenge for employers. In theannual Human Resource Executive survey, “What’s Keeping HR LeadersUp at Night,” human resource professionals reported again this yearthat their biggest concern is ensuring employees remain engaged andproductive.

Financial stress and productivity

One of the factors affecting employees’ productivity isfinancial stress. Although the economy has improved over thepast few years, many employees remain burdened by day-to-dayfinancial concerns.

Consequently, the distractions and resulting levels of stressseriously affect their health and productivity. With an increasingnumber of people worrying about their personal finances, employersare seeing this trend negatively impacting the bottomline.

Inevitably, financially distressed employees spend time at workdealing with their personal financial issues. Further,according to the 2011 Financial Stress Research report fromFinancial Finesse, an estimated 60 percent of illness is directlyor indirectly caused by financial stress, costing most large andmedium-sized companies millions of dollars per year in health careexpenses.

There is a significant cost to businesses when employees arestressed financially. And there is tremendous benefit to theemployer who takes a proactive stance by helping employees learn tomanage their finances. Helping employees deal with their financescan help companies cut health care costs, boost productivity,reduce absenteeism and build employee engagement.

Companies can take steps to alleviate employees’ financialdistress. Employers should introduce or increase financialeducation benefits and offer non-traditional voluntary benefitssuch as employee purchase programs. Employee purchase programsallow employees to acquire high-ticket products and services on adisciplined budgeting plan.

Financial stress is unhealthy

Financial stress can cause illness and unhealthy behaviors,resulting in more healthcare visits, claims and overall higherhealthcare costs for both the employer and the employee. It is aleading cause of illnesses such as migraines, back pain, anxiety,depression, insomnia, ulcers, weight gain and heart attack.

A poll of AOL employees shows the toll that owing money takes onpeople – even on different parts of the body. Stomach ulcersoccurred in 27 percent of people with high levels of financialstress as opposed to 8 percent with low levels. Migraine and othertypes of headaches occurred in 44 percent of people with highfinancial stress levels compared to 15 percent with low levels.Severe anxiety affected 29 percent of those with high stress levelsversus 4 percent of those with low levels.

The American Psychological Association recognizes financialstress as the leading cause of unhealthy behaviors like smoking,weight gain, and alcohol and drug abuse. Other behaviors linked tofinancial stress are gambling and overextending credit balances.Each time employees turn to these temporary stress relievers, theAPA concludes that the stress returns and often at even greaterintensity.

The message is clear: Reduce financial stress and the cost ofhealth care for that employee is reduced.

Employee purchase programs as a solution

Employees want their employers to help. In fact, according tothe 2012 MetLife 10th Annual Study of Employee Benefits, 49 percentof employees say that because of the economy, they are counting ontheir employer’s benefits programs to help with their financialneeds.

Offering employee purchase programs as a voluntary benefitcan help employees ease fiscal stress and aid them in getting backon a firmer financial footing.

Through employee purchase programs, workers can acquire avariety of household items including computers, appliances andfurniture through payroll deduction. The best employee purchaseprograms are viable, cost-effective alternatives to other consumerpurchase plans, such as employer discounts, layaway, rent-to-ownand even credit cards, which often come with high interest rates ortight access to credit. With employee purchase programs, workerscan buy products they need in a disciplined manner using a 12-monthpayment plan through automatic payroll deductions with no late feesor ballooning interest, making budgeting easy. Employee purchaseprograms give employees access to items they need when cash andcredit aren’t available, thus helping to reduce financialstress.

Bill Cheeks, personal finance expert and ABBA Associatespresident, recommends employee purchase programs as an advantageousway for employees to obtain needed household items in a disciplinedbuying manner when cash is not an option. According toCheeks, an employee purchase program as a voluntary benefitprovides a way for hardworking employees to buy merchandise theyneed through an employee benefit at their place of employment. Itgives employees access to name brand products with a disciplinedway to pay through payroll deduction with no hidden fees likecredit cards.

Some businesses are hesitant to initiate employee purchaseprograms, believing that such programs may not be needed or valuedby workers in their organization. But a nationwide study of who isusing employee purchase programs sheds light on who those workersare and it may be surprising to some employers. According to aHarris Interactive and Purchasing Power study earlier this year,the typical employee who uses an employee purchase program is:

• 35-44 years old;
• Married;
• Female;
• Mid-income; and
• Has at least one child in the household.

When employers choose an employee purchase program to add totheir benefits package, selecting one with a comprehensive productand services offering will best benefit their employees. Theleading employee purchase programs today offer computers,appliances, electronics, furniture, home and outdoor products,fitness and recreation items, baby gear and even educationalservices. With a wide variety of product offerings, employees cantruly personalize their benefits by acquiring items that meet theirindividual needs: a new washing machine to replace a broken one; alaptop for a son or daughter going off to college; nurseryfurniture for the new addition to the family.

The more innovative employee purchase programs now areoffering a way to pay for education at competitive pricing withoutbuilding debt so employees and/or their children can graduatedebt-free. Among the educational opportunities now availablethrough employee purchase programs are tutoring, test preparation,continuing education courses and online degree programs. Tuitionreimbursement programs historically offered by employers havedecreased and are less funded, yet employers are highly supportiveof education for both the employee and their family. Witheducational programs and professional courses available through anemployee purchase program, employers are able to provideeducational benefits for their workforce, and employees have theopportunity to graduate debt-free.

Boosting employees’ financial health paysoff

Employers can play a key role in helping employees handlefinancial stress and get back on firmer financial footing. Inaddition to traditional methods of financial education, manyemployers are providing financial counseling for employees.Offering a comprehensive employee purchase program with automaticpayroll deductions and short-term payback compliments this servicebecause budgeting becomes easier, reducing stress on employees.Companies providing these types of financial health offerings areseeing the results – lower healthcare costs, a boost inproductivity and consequently an improved bottom line.

Companies who have instituted employee purchase programsare not only helping their workforce acquire much-needed items butare experiencing more productive employees. According to the 2012Harris Interactive and Purchasing Power survey, workers cite thefollowing as the top-three most important benefits they get fromtheir employee purchase programs:

• 57 percent can access products they otherwise could notafford;
• 51 percent can implement a more disciplined budget; and
• 46 percent can be more productive at work.

Employers who invest in educating their employees in personalfinance will see a significant return on their investment. ThePersonal Finance Employee Education Foundation reports the ROI isat least 3 to 1. Thus, investing $250 in an employee’s financialeducation yields a $750 return.

For many companies, employee financial wellness is themissing piece to maximizing the effectiveness of existing wellnessprograms and containing healthcare costs. It also fosters aworkforce of healthier, happier and more productive employees whoare engaged and empowered.

It is in an employer’s best interest to provide programsand services to help employees remain financially healthy. It meansdoing more than just providing a paycheck and corebenefits.

Brokers who introduce employee purchase programs as anon-traditional voluntary benefit to their clients are helpingthose employers meet HR objectives and increasing their commissionsat the same time.