It’s a tough financial landscape for many of our employees today: from retirement concerns to increases in cost of living to rising debt, the average employee has a lot on their mind when it comes to money.
That’s nowhere more clear than in PwC’s 2016 Employee Financial Wellness Survey, where the below statistics were, in my mind, absolutely staggering and showing a real need for a new approach to how we talk with employees about their finances:
- 45 percent of employees surveyed said that their finances cause them the most stress in their lives
- 28 percent of employees said personal finances distract them from their jobs
- While nearly three-quarters of employees are saving for retirement, the study showed most will still be unprepared for retirement. Nearly half of those surveyed had saved less than $50,000 for retirement and what’s even more troubling, more than one-quarter are saving less than they were in 2015
- Nearly 25 percent of all employees have already withdrawn money from their retirement plans, and 43 percent think it’s likely they’ll need to use money from their retirement plans for their daily expenses or other non-retirement costs
Kent Allison, PwC Partner and National Practice Leader, put it best: “It is important for employers to show that they care about employee financial well-being as this will likely impact retention, recruitment and productivity, particularly for Millennials and Gen X. With retirement savings worryingly low, now is the time for employers to put effective financial wellness programs into place that focus holistically on the financial well-being of employees and drive behavioral change.”
It’s a powerful and very accurate statement. More and more, our employees are looking to us and their benefits to help them manage finances. And it’s HR pros who have to lead the charge.
At Businessolver, we believe employees view their benefits as part of “one wallet,” that is, they see the costs of their benefits as coming from the same pool of money as their cost of living, debt, savings, etc. does. This means it’s more important than ever for HR to help guide when it comes to choosing and managing benefits.
Recently, we released a helpful guide for HR leaders called, “Financial Feelings: What HR Needs to Know About Employees and Money.” This guide discusses the impact financial concerns have on employee performance and quality of life, and provides information on how the right partner and decision support tool can help HR lead the charge for a one-wallet approach to benefits and increased employee satisfaction. Click here to learn more and download the guide.
With new and varied generations of workers coming into the workplace, it’s more important than ever that HR understand the challenges and needs of their workforce. Financial worries aren’t going to go away any time soon, but HR leaders can help employees find the right tools and benefits to manage their financial concerns, leading to ultimately a happier - and more productive – workforce.
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