3 reasons to focus on employee financial security. Critical insights from recent data reveal the significant benefits of supporting employee financial security.
Significant inflation and economic turmoil have brought employee financial security into the spotlight. Recently, Mercer published their 2023-2024 Inside Employee’s Minds study and found that 78% of all employers surveyed felt a high to moderate level of concern regarding employee financial well-being.
This worry isn’t without good reason. One of Mercer’s most pressing insights reveals that employees have a renewed focus on financial stability in 2024 — and they’re increasingly turning to their employers for help.
Here are three key reasons employees’ financial security should be top of mind of employers in the new year and beyond.
1. Recent economic trends have made it harder for employees to maintain healthy personal finance habits.
Inflation has been a prevailing concern over the past year and the workforce has felt the effects. Seventy-two percent of employees surveyed by Mercer agreed with the statement: “High Inflation and market volatility have significantly increased my financial stress.” What’s more, 51% of employees reported reducing their discretionary spending due to economic concerns and another 37% had to reduce or tap into savings.
When asked to rate their top unmet needs, “covering monthly expenses” and “being able to retire” topped the list of employee concerns. More than 10% of all employees surveyed had at least some concerns about their financial health. Financial stress has long been linked to poor outcomes at work, with stressed employees feeling less productive and less connected to their employers and experiencing higher rates of absenteeism.
2. Economic strain and financial stress threaten overall employee well-being.
Stress from inflation and similar economic turmoil seeps into aspects of everyday life, and some of the most crippling expenses that the American workforce face are related to healthcare. Only about three-fourths of employees feel they can afford needed healthcare without facing financial hardship, including employees making six figures. Moreover, for employees in lower income brackets, these numbers drop. Only around half feel they can afford needed care.
Long-term stress takes a physical toll on the body, causing high blood pressure, headaches, insomnia, fatigue, and more. These stressed employees may in turn spread discontent in the workplace and negatively impact company culture. According to data collected by Gallup, stressed employees are more likely to butt heads with coworkers and superiors alike.
3. Competitive employers recognize the importance of employee financial security and supportive financial benefits. Economic strain and financial stress threaten overall employee well-being.
Mercer’s research uncovered that one in three employees are considering leaving their employer because their benefits needs have not been met. So, as personal finance woes have skyrocketed to the top of worker’s minds, financial security has become a key benefits incentive.
More and more employers are integrating financial wellness tools into their benefits strategy, or plan to in the new feature. Mercer found that of their surveyed employers, 55% already offered some type of basic money management tool and another 27% hoped to integrate such tools soon. Fifty-three percent of employers also offered financial planning seminars and webinars with another 27% planning for such tools down the road.
Support employee financial security with holistic financial wellness benefits.
Personal finance benefits can support employees of all ages and help employers to stand out in a crowded job market.
Best Money Moves is an interactive financial wellness benefit that helps employees make smarter choices about their money.
Whether employees are building their first budget, paying down debt, working toward homeownership or planning for retirement – Best Money Moves has the tools they need to turn financial goals into reality.
Best Money Moves users gain access to a suite of debt trackers, budgeting calculators and a library of 900+ articles, videos and webinars. Our tools empower employees with actionable solutions to real-world problems. Best Money Moves users also receive exclusive member deals from our library of trusted benefits partners, including discounts on insurance, college planning prescription medications and so much more.
Schedule a call with a member of our team to learn more about Best Money Moves. Contact us and we’ll reach out to you soon.
