The financial well-being of your employees affects their health, their productivity and your bottom line.
A recent nationwide survey by Purchasing Power, Inc. found that:
Survey highlights
- A high percentage of employees suffer significant financial stress. More than one in four workers surveyed (28%) find it hard to meet monthly household expenses and nearly half (44%) have less than $2,000 in emergency savings.
- They bring these concerns to the job. More than four in ten (44%) worry about personal finances during work hours.
- This stress leaves them less engaged at work and reduces productivity. Nearly three in ten employees (29%) deal with personal finances during work hours and almost half of these (46%) average two to three hours a week on money issues.
Employers can respond with practical steps—education, tools and thoughtful benefit design—to reduce stress and protect productivity. For perspective on employer-led programs, see Employee Wellness Programs and Their Impact.
Recommendations
- Help them reduce debt by offering education, either in groups (through webinars or with a live speaker) or individually so that workers can learn about topics such as budgeting, intelligent use of credit and savings programs. A referral to a qualified credit counseling agency can provide a useful follow-up.
- Give them access to responsible budgeting tools. Offering non-traditional voluntary benefits, such as employee purchase programs (which allow workers to acquire high-ticket items and educational services on a “forced saving” basis through payroll deduction) can help reduce their financial stress significantly.
- Encourage employees to participate in retirement programs such as a 401(k) plan. However, before workers do this, advise them to deal with debt and budgeting issues and tuck away a nest egg.
For additional ideas on designing benefits that support financial and workplace wellness, see Transforming Employee Health Benefits and Workplace Wellness, Safety and Security Insights.
Our Benefits experts stand ready to help you ensure financial peace of mind for your workers — talk to an agent.
Frequently Asked Questions
How can employers help employees manage financial stress?
Start with education on budgeting and debt, provide access to savings tools, and make referrals to credit counseling when appropriate.
What is an employee purchase program?
It's a voluntary benefit that lets workers buy higher-cost items or services through payroll deduction, effectively encouraging saving and reducing immediate out-of-pocket burden.
Should employees pay down debt before contributing to retirement?
Generally, high-interest debt should be addressed first, but it's often wise to build a small emergency nest egg and consider employer match opportunities before pausing retirement contributions entirely.