Spending accounts can help employee health and employee retention

You can see those trends in the U.S. Bureau of Labor Statistics' Employment Situation Summary.

Even employers that are not able to increase headcounts may want to leverage their benefits offerings to retain top talent.

One important step is to regularly assess current and future employees' needs and preferences through surveys or focus groups, to make sure benefit offerings remain relevant and effective.

With financial challenges being felt from the grocery store to the gas pump to medical expenses, many employees are looking more closely at their employee benefits package than they have in previous years.

Financial stress levels are high.

The Employee Benefit Research Institute and Greenwald Research's recent Workplace Wellness Survey found that 73% of Americans feel stressed thinking about their financial future, with 45% expressing that worrying about their finances distracts them from work.

Financial stress has the potential to lead to additional issues, including an avoidance or delay of medical care, decreased mental well-being, or even seeking a new job to better meet immediate financial needs.

Without tools and support to address financial wellness, many Americans struggle to manage day-to-day expenses, let alone plan for larger expenses or retirement.

According to a new Bankrate report, only 46% of U.S adults have enough emergency savings to cover 90 days of expenses.

Engagement counts.

While financial stressors can be complex, employers can better engage their workforce through the successful use of employee benefit accounts, such as:

◆ Health savings accounts (HSAs).

◆ Flexible spending accounts (FSAs).

◆ Health reimbursement arrangements (HRAs).

◆ Commuter benefit accounts.

Each of these account types offers employees the benefits of tax advantages to better save and prepare for health care, dependent and commuter expenses.

Additionally, they enable employees to take better control of their finances in a manner that's individually tailored to their financial situation.

Related: 401(k) & HSA: The perfect retirement power couple?

In addition to these tax-advantaged accounts, lifestyle accounts, which cover expenses such as fitness or therapy, can help round out the benefits package.

Comprehensive benefits promote financial wellness.

About 83% of employees rank health coverage as extremely or very important when considering job decisions. Helping employees take a proactive, holistic approach toward financial wellness by examining health care savings, savings accounts and retirement funding can provide them with a roadmap to make their hard-earned cash work for them as they face challenges.

With nearly 70% of Americans believing their employer has a responsibility to make sure employees are financially secure and well, it is now more important than ever to prioritize the unique needs of employees and provide tools for financial education and stability.

Wellness and health benefits programs can enable employees to invest in meeting their long-term needs, not just their short-term wants, and give employees peace of mind.

Before open enrollment season, employers should evaluate the competitiveness of their benefits offerings, including spending account contributions.

About 51% of Americans say they want greater financial contributions from their employer. Seeding HSAs, for example, is one way that employers can reduce some of the stressors associated with making the switch to a high-deductible health plan paired with an HSA.

This addresses the concern of having an out-of-pocket expense early on and allows employees to realize the benefit of potentially lower monthly premium costs.

Select the right partners and tools.

When offering benefit spending accounts, choosing the right administrator or custodian is essential.

Employers should ensure their partners align with employees' needs, offer clear communication and provide robust access, education and support.

The ideal partner delivers solutions that are easy to implement, efficient to manage, cost-effective and most importantly, help attract and retain talent.

Inviting vendors to participate in open enrollment can give employees direct access to information and personalized guidance for unique situations.

In addition, employers should offer financial wellness tools that help employees plan, save and pay for health care, dependent and commuter expenses. These tools should support year-round communication and, ultimately, drive employee retention and satisfaction.

Make the most of open enrollment.

Open enrollment is when everything comes together.

It's a key time for employers to show the value of their workplace benefits and educate employees on the benefits available, how they work and what type of value they should expect.

Be sure to focus on personal messaging and creating space and options for employees to feel heard and have their questions answered.

This approach builds awareness of benefits, provides support during financial hardship and fosters a caring company culture.

In a time of so much economic uncertainty, it is a must for employers to meet their employees where they are in their open enrollment journey.

Employees need support now more than ever.

For organizations offering benefit spending and saving accounts, dedicating time to help employees understand all the advantages of these accounts can significantly improve their overall financial wellness.

Supporting the workforce with meaningful benefits that make a difference can be a crucial differentiator for retention, culture building and productivity.

Brian Hutchin is executive vice president and director of UMB Healthcare Services at UMB Bank.