Financial stress is hampering U.S. workers, 82 percent of whom say employers should play a role in supporting their financial wellness.
71 percent of U.S. employees say financial stress is negatively affecting their work and personal life according to Morgan Stanley’s second annual State of the Workplace Financial Benefits Study.
Just how negatively? U.S. worker productivity is down to levels not seen in nearly a century.
While many factors contribute to the current U.S. labor environment, two things are abundantly clear. Rising numbers of employees nationwide are stressed about personal finance; and employers looking to solve for the financial health of their employees should explore personal, human, guidance, by offering, say, a Personal Finance Coach.
“More than half (52 percent) of employees believe that working with a Financial Advisor would be the single most beneficial resource for them” according to Morgan Stanley. “But access to a Financial Advisor did not even make the top three retirement planning resources among HR leaders—demonstrating a disconnect.”
With 63 percent of U.S. workers now living paycheck to paycheck including nearly half of employees earning at least $100,000 per year, personal finance is on employees’ minds, on and off the job.
More than half of financially-stressed employees who are distracted by their finances at work spend three hours or more each week dealing with personal money issues during work time, finds the Morgan Stanley study: “Employers who direct their employees to financial wellness resources to help alleviate stress have the potential to reap tangible gains in employee focus and productivity.”
Another gain: employee satisfaction, which contributes to retention. In fact, ninety-one percent of employers see higher employee satisfaction when they offer tools and resources to help employees manage their financial well-being according to Bank of America’s 2022 Navigating a New Era of Financial Wellness report.
Among its key findings: employees want programs to alleviate financial strain, with eighty percent concerned about inflation. 71 percent say the cost of living is outpacing their salary or wages, while 82 percent say employers should play a role in supporting their financial wellness.
The bottom line is that financial health is increasingly front and center for increasing numbers of workers—as it should be for all businesses and organizations aiming to capture the productivity, recruitment, retention, and employee wellness gains of a financially healthy workforce in 2023, and beyond.
Schedule a time to speak with financial health and productivity expert Milly DuBouchet about how TrustPlus can help your business or organization capture the benefits of a financially healthy workforce.