When it comes to wellness, the message is really quite clear: Always get to the root of the problem, instead of simply treating the symptoms.  That same advice can apply to benefits advisors and employers looking to provide benefits that help employees improve their financial wellness. This is especially relevant when trying to help employees who are coping with stress.  Consider the following: Many Americans are struggling with unhealthy levels of stress and it's taking its toll:

• According to the American Psychological Association's 12^th Annual Stress in America survey, almost half of the respondents reported laying awake at night due to stress.
• About half of the general population stresses over financial concerns, while more than two-thirds of millennials report having moderate to high levels of anxiety about savings and income, according to a Northwestern Mutual survey.
• These young employees, who comprise the largest and fastest growing generation in the U.S. workforce, commonly struggle with heavy student debt burden, a lack of financial planning knowledge and fear of costly risks.
• A study conducted by PWC found that employees who are stressed about their finances are nearly five times more likely to be distracted at work and are twice as likely to spend three hours or more at work dealing with financial matters.

While all this stress is unsettling for individuals, it also has a debilitating effect on their employers. American businesses lose more than $300 billion every year because of employees' stress-related issues that are negatively affecting productivity, absenteeism, turnover and out-of-pocket medical, insurance and legal costs, according to statistics cited in an ARAG study.

Take, for example, the impact of employee stress on an employer's health insurance premiums. Employees with high stress levels are two times as likely to have a heart attack as other employees, three times more likely to have ulcers and 500 percent more likely to experience increases in anxiety and depression.

With stress eating away at employee wellness and productivity, it's not surprising that employers are looking to offer benefits that will help employees cope. Walking groups, massages and Friday afternoon beer carts are some of the initiatives that employers have used to help employees breathe a sigh of relief in today's go-go world.

Treating the cause While such perks offer a welcome reprieve, employers could have a much greater impact on employee stress levels by addressing its “root cause.” Employers could help their employees reduce — or eliminate — the financial worries that actually create stress, instead of just offering after-the-fact relief. Financial wellness initiatives can be pivotal in helping employees reach “aspirational goals like freedom from stress and financial worry, and being able to make choices to enjoy life,” according to PWC.

Fortunately, some consultants and their clients are coming through with the assistance that employees need. In fact, the Employee Benefits Research Institute reported that about 3 out of 4 firms with more than 10,000 employees now offer a financial wellness program.

Financial wellness programs can include a variety of voluntary benefits, such as legal insurance, health reimbursement arrangements, student loan assistance programs, enrollment in 401(k) plans, financial counseling, educational resources, and retirement planning.

Related: Making financial wellness approachable… for employers

These voluntary benefits can empower employees to better address challenges that cause financial stress in the first place. For example, student loans are commonly cited as a stressor in the lives of recent graduates. This is not surprising, as the average 2018 graduate accumulated $29,800 worth of private and federal debt while in school, according to the Office of Federal Student Aid. A student loan assistance program helps employees better manage repayment, taking much of the stress out of the student loan equation.

Fidelity estimates that 25 percent of its employees have student debt. Through its “Step Ahead” program, manager level and below are eligible to receive up to $2,000 per year (up to $10,000 total) toward repayment of their student loans. They also have access to online tools to help them better manage their student loan debt.

Abbott takes a decidedly different approach to improving its employees' financial wellness, helping its employee both repay student debt and save for retirement.  For employees who contribute 2 percent of their paycheck to student loan repayment, Abbott will provide a 5 percent match to the employee's 401(k) retirement plan.

Legal insurance is another benefit that can help to alleviate employee stress. When experiencing legal issues, 71 percent of employees are likely to feel very or somewhat stressed about not knowing where to turn or how to get started. Meanwhile, 67 percent are likely to feel very or somewhat stressed about the amount of money they may have to or have already spent, according to research from ARAG.

Legal insurance could help employees, many of whom are already immersed in stressful situations, when making the decision to seek legal assistance. Consider the following example: After experiencing the emotional turmoil associated with infertility treatment, a 30-something couple decided to pursue adoption, which in-and-of-itself is a stressful process. On top of the emotional upheaval associated with infertility, as well as the complicated and time-consuming adoption process, the couple needed to hire and pay for an attorney. Fortunately, having legal insurance took much of the stress out of this part of the adoption process.

“After years of doctor's appointments and failed infertility treatments and months of dealing with the never-ending paperwork associated with adoption, it was a great help to be able to simply select a qualified attorney and rest easy knowing that the legal aspects of the adoption would be taken care of. And, of course, knowing that we didn't have to worry about the attorney fees resulted in a huge sigh of relief,” said the adoptive parent.

Key Takeaway

Employers offering financial wellness programs that address the root cause of stressors — not just the visible symptoms — can help employees manage both stress and money, keeping them more satisfied, engaged, and productive at work.

Dennis Healy is a member of the ARAG® executive team. Dennis is a passionate advocate for legal insurance because he has seen firsthand how it helps people receive the protection and legal help they need. He has more than 25 years of insurance industry experience, with a primary focus on the sale of group voluntary benefit products to employer groups of all sizes through brokers, consultants and employee benefit exchanges.