In today’s global, always-on, and ultra-competitive workenvironment, good employers understand that productive, highlyengaged employees are their greatestassets.

That’s why many have made commitments to improving workplaceperformance and safety, while raising employee awareness of healthand health-related risks.

In developing this workplace culture of health, employers areincreasingly realizing the intrinsic connection between employees’financial well-being and their abilityto be at their best while on the job.

The financial health - physical health link

According to a newly released Willis Towers Watson Global Benefit AttitudesSurvey 2015/16, less than half (45 percent) of U.S. employeesindicate satisfaction with their financial situation, while one infive employees believe their current financial problems arenegatively impacting their life.

Read: 4 ways to communicate with the 21st centuryworkforce

Compounding the problem, many employees harbor concerns abouttheir long-term financial outlook, with nearly half (48 percent)noting they often worry about their future financial state.

These concerns are most evident in the younger generation.Millennial employees – people born between 1980 and 2000 who make up the biggestgeneration in U.S. history – face unique concerns when it comes topreparing for their futures.

Millennials are increasingly losing faith in existing governmentassistance programs, such as Social Security and Medicare. In fact,our latest survey found that three-quarters of employeesfeel they will be worse off in retirement than their parents’generation, with nearly as many believing Social Security will beless generous (71 percent) and government-provided health benefitswill be worse (70 percent).

Workers with such financial worries are more stressed, lessengaged at work, and less healthy than their more financiallysecure peers.

The financial well-being factor can take a toll on employees’ability to be productive at work. Distracted, and thereforeinefficient, employees can be detrimental to the bottom line, so itis essential that employers find ways to encourage healthyhabits—for both financial and physical health.

The role of health savings accounts and healthreimbursement accounts

The good news is that consumers are taking a more active role indecision-making about their health than ever before.

Employees, no longer sheltered from health care costs, arebeing exposed to the actual costs of their health care decisions.As a result, they are becoming much more proactive about theiroverall health and wellbeing, taking the time to evaluate optionswhen doctors propose expensive tests and procedures.

Better yet, the millennial generation does not equate beinghealthy as simply not being sick. Millennials have an avid interestin their overall physical well-being and are dedicated to an activelifestyle and eating right according to Goldman Sachs’ latest Millennial datasnapshot.

Consumer-directed, or consumer-driven health plans, and morespecifically health savings accounts and health reimbursementarrangements, are fundamentally changing the way people manage andview their health and financial planning.

As the way people view and manage their health and financeschanges, the health care industry needs to adapt to keep pace. HSAsand HRAs can address financial concerns and improve outcomes acrossthe board—driving healthier choices, and ultimately, healthieremployees.

Companies have invested thousands of dollars to create programsto enhance employees’ overall well-being. Yet, the Willis Towers Watson Global Staying at Work Survey2015/16 found that only 50 percent of employees are enrollingin such programs, and among those who do, engagement is low, withonly 40 percent of participants earning an incentive.

What can employers, health plans, banks and benefitsadministrators do to help their employees and plan members realizethe value available to them through CDH plans and wellnessprograms? We recommend the three following steps:

1. Focus on education.

When it comes to their finances and health, consumers want toknow all of their options and understand what makes the bestfinancial sense for them.

Read: 10 easy HSA FAQs

Being actively engaged in the financial decisions (andrepercussions) of their health care choices means that they need tomove past the era of simple paycheck deductions.

Consumers now grapple with questions such as: How much moneywill I need to cover my health care costs in retirement? What’s thebest way to save money? When can (and should) I useHSA or HRA funds?

Education on the benefits of CDHPs is critical to widespreadadoption and change, as current understanding among plan users isvery low. In fact, the Acclaris Consumer Survey found that 92 percentof industry insiders rate consumer understanding of HSAs and HRAsas “mediocre” or “poor,” while 40 percent called out HSAs as themost difficult type of plan to understand.

That could be why nine in 10 employees view their HSA as a spendingaccount, rather than a savings vehicle. An industry-wideeducation effort is key to improving these alarming statistics.

2. Prepare for long-term engagement.

Education and engagement cannot be once-a-year activities thatend at the close of open enrollment season, as underscored by thefact that only half of employees participated in any well-beingactivity or health-related management program in the last year,according to the Willis Towers Watson study.

The good news is, those who did participate became increasinglyengaged once they began exercising their benefits.

Once employees are actively engaged, employers have anopportunity to help them learn and make smarter choices.

Assigning champions for HSAs within the organization can helpbuild awareness and excitement about the new financial toolsavailable to employees.

The health care industry needs to start thinking more likethe banking industry, because there is no smart health caredecision if there isn’t a way to pay the bill. An ongoing dialoguewith employees about health and the financial implications ofhealth care decisions is essential to lasting engagement.

Read: Voluntary benefits and HSAs

3. Stay transparent.

When it comes to their account-based health plans, employees –particularly those of the millennial generation – expect fulltransparency.

This includes ongoing communication, accurate and up-to-dateinformation, easy-to-use technology, simple transactions, and quickreimbursement that takes days, not weeks.

In exchange for transparency, employees are becomingincreasingly open to disclosing personal details about their healthand financial status. As employees allow administrators andemployers to take a more active role in their health journey, theycan jointly create holistic, customized plans that address eachemployee’s specific health and financial needs.

It is understandable that employees are confused and stressed asthe health care landscape and their role within it changes. Theyare being tasked to understand a wide variety of new options, whilealso taking on more of the financial burden than ever before.According to HealthView Services,“Health care will likely be your biggest expense during the goldenyears … A 65-year-old, healthy couple can expect to spend $266,600over the course of their retirement on Medicare premiumsalone.”

Focusing on the connection between financial health and physicalwell-being is absolutely critical for administrators, employers andemployees.

It is time to move beyond financial incentives and startfocusing on encouraging employees to live a healthier lifestyle. Bybetter understanding employees’ health care concerns and financialchallenges, employers can build the trust and transparency neededto create engaging programs that will driver healthy decisions andbetter outcomes – for both the employer and employees.

Read: Eye on tax benefits and DC benefitsplanning