Despite 2019 ending with a strong economy and nominal wage growth, a recent study by PricewaterhouseCoopers found that most employees in America are stressed about their financial wellbeing.
59% of surveyed employees cited money matters as the primary cause of stress in their lives, and 49% reported finding it difficult to meet their household expenses on time each month. Top financial stressors included rising living expenses, student loan debt, cash flow issues and the inability to save for retirement. ¹
“As a result, we believe that employee anxiety will continue to mount without a greater emphasis on increasing savings and improving longer-term financial well-being,” the report says. “Stressed employees are nearly three times as likely to say they expect to spend the majority of their time ‘working in retirement’ because they’ll need to financially. We foresee critical issues for organizations if the root causes of this financial stress are not addressed.”PricewaterhouseCoopers’s 2019 Employee Financial Wellness Survey ²
In fact, financial stress may be creating issues for organizations right now. 35% of employees admitted that their financial issues distracted them at work, with 49% among them spending 3 hours or more each week thinking about them.
Organizations can help their associates minimize their financial stress by promoting better saving habits. This can be accomplished by setting up innovative policies, like offering extra bonuses to employees who deposit their tax refund or company bonus into their savings account³. You can also consider refitting your existing policies to better fit your associates’ savings goals. Rather than offering matched contributions for 401(k)s alone, for example, you can start matching contributions for your associates’ student loan debt⁴ and HSAs⁵ as well.
Employee savings benefits like TicketsatWork, Plum Benefits, and Working Advantage can also help your associates stretch their paychecks on recreational & everyday expenses. By offering up to 50% discounts on theme parks, travel packages, retail, and more, these benefits help to ensure that they’ll still be able to enjoy incredible experiences with their loved ones.