PWC (PricewaterhouseCoopers), a leading multinational professional services firm recently completed a study focused on strengthening workforce financial wellness. The study surveyed 1,600 full-time employed adults across the United States.
After a year of upheaval, finances are the top cause of employee stress, even above job, health, and relationship stress COMBINED.
The study revealed a set of work place statistics that are quite eye opening when it comes to the current state of employee wellness. Some of the key take aways are as follows:
Overall
63% of employees say that their financial stress has dramatically increased since the start of the pandemic.
87% of employees want help with their personal finances.
As a result, these employees are:
4x as likely to have experienced a decrease in overall household income
4x as likely to find it difficult to meet household expenses on time each month
2x as likely to have used a payday loan or payday advance in the past year
2x as likely to have taken a loan or distribution from retirement accounts
45% less productive at work
72% more attracted to another company that cares more about financial wellbeing
Are carrying credit card balances longer and owe more on their cards than last year
Are embarrassed to ask for financial help at work
Over 25% usually wait to seek financial guidance until they experience a financial crisis related to debt, cash flow or an unexpected expenses
The study clearly shows that employers need to pay more attention to employee wellness if they intend on running a productive and profitable business. The conclusions of this study highlighted 4 key areas PWC feels employers need to understand when it comes to addressing their own state of employee financial wellness:
1. It's time for a wellness culture at work
Employers who invest in improving employee financial wellness will see long-term benefits in metrics that matter to the organization, but this process has to start with a commitment to employee financial wellness as an integral piece of the organization’s total wellness culture.
2. Employees need guidance
Employees have witnessed firsthand the importance of having a financial cushion for unexpected events. Yet they remain woefully underprepared.
3. Employers need to remove the stigma of asking for help
With more than 50% of financially-stressed employees embarrassed to ask for help with their finances, employers need to ask about their financial health in ways that preserve employee dignity and privacy. Employee financial assessments can pinpoint where people are struggling and enable organizations to focus and personalize resources for their most vulnerable populations.
4. Implement a technology solution paired with human interaction and guidance
Online tools can be particularly useful when it comes to educating employees and assisting them in tracking their spending and savings and can also help them better understand how they compare to their peers.
The Benefi Financial Wellness Platform is a direct example of the last point 4. Our online tools are designed to help employees achieve ongoing financial stability. To educate and empower and to help employers create healthy financial habits in their employees that become a lasting part of their life, at work and beyond.