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Employers want to help their employees’ financial well-being, and many are investing heavily in financial well-being programs to offset the negative effects of an unpredictable economy. Yet, according to a Payroll Integration survey, two-thirds of employees still feel financially anxious.
of 2024 Employee Financial Wellbeing Report The report found several disconnects between HR and employee perceptions of financial wellness and the effectiveness of programs implemented by employers. For example, while almost half of employers believe they fully support their employees’ financial wellness, only 28% of employees feel the same, the report said.Although most employers believe they have a responsibility to support their employees’ financial well-being, only 36% of employees feel completely financially stable.
According to the report, more than 40% of employers said they plan to invest more in financial education and planning services in the next year, but only 18% of employees are interested in the programs they currently invest in. Instead, health insurance and retirement plans top employee benefits priorities, with only 12% of employees interested in improving financial education and planning benefits.
When asked about the most important tools and benefits for financial wellness, 44% of Baby Boomers said pensions, 46% of Gen X and Y said additional compensation, 31% of Millennials said health savings accounts and flexible spending accounts, and 38% of Gen Z said lifestyle compensation.
“There’s a clear disconnect between what employers think their employees want in terms of financial wellness offerings and benefits programs and what employees feel they need to make a difference,” said Doug Sabella, CEO of Payroll Integrations. “Employers need to reevaluate how they provide financial wellness support to their employees. It’s clear that employers want to support the financial wellness of their employees, but they don’t agree on what’s most important to do so. It’s up to employers to determine where to most effectively put their resources to better support their employees’ financial wellness journeys.”
This perception is important because benefits can influence future employees’ employment decisions, the report concludes: A majority of employees say they would not accept a new job offer if it did not offer a retirement plan or health insurance as benefits.
The report also found a generational divide in perceptions of financial security: 65% of millennials say they have complete control over their financial situation, compared to 54% of Gen X and Y workers, 38% of baby boomers and 33% of Gen Z workers.
