Making the connection between wellness and work

Wellness has emerged as a significant challenge for many Americans in recent years. Financial, physical, and emotional wellness challenges influence all aspects of a person’s life, including their work. For employers, this means employee stress can result in high absenteeism, high turnover, increased benefits claims, poor retirement and other savings behaviors, and reduced workforce productivity. 

LIMRA surveyed nearly 4,600 U.S. workers to measure their financial wellness levels and the impact that financial wellness has on their work. Our research shows that financial wellness is a concern for many working Americans and that employers should be concerned, as financial wellness can significantly impact workforce engagement and productivity.

Based on our research, we’ve created a measure of consumer financial health and stress known as the LIMRA Financial Wellness IndexTM. The Index considers a number of factors related to consumers’ confidence in their current financial situation, ability to withstand unexpected expenses, and their ability to plan for a financially secure future. The average American worker scores just 5.50 on the Index’s 0 to 10 scale, and just over half of workers are considered “distressed,” “stressed,” or “just managing” when it comes to their financial wellness. Those scoring lower include lower-income workers, women, younger workers, and those who are single.

Our research further shows that those workers who are struggling are less likely to express positive attitudes toward their work and are more likely to be distracted at work because of personal financial, health, emotional, and related worries. For example, while 80% of workers who score highest (“well”) derive personal satisfaction from their job, just 49% of workers who score lowest (“distressed”) express a similar sentiment. Likewise, few workers who score highest (just over 10%) feel distracted at work because of personal emotional worries; this number jumps to almost 70% of those who are financially distressed. 

Worker financial wellness

Interrelated, financial, health, emotional, and related factors often contribute to a more stressed and distracted workforce, particularly among younger workers. Millennials and Generation Z workers represent a significant and growing segment of the U.S. workforce. Compared with older generations, younger workers are more distracted at work by these concerns. For example, 30% of Generation Z workers and 24% of Millennial workers report that they often feel distracted at work because of household members’ health or care issues (compared to just 14% of Generation X employees and 9% of baby boomer employees). Taking on responsibilities of household members’ health or care issues can result in time and focus taken away from work while these outside needs take precedence. According to other LIMRA research, many have interrupted their employment in some way to accommodate these caregiving demands. Among those who have been unpaid caregivers, almost half of workers (48%) have experienced an impact at work as a result. Reducing hours and having to take an unpaid leave of absence are the most common. 

Given the challenges that employees face, and the impact these challenges have on their job, it is in employers’ best interest to help workers address these needs, with the help of their advisor. A majority of employees — particularly those who are most stressed — feel that employers should provide services to help them address financial, emotional, or physical stress. These services can be provided through enhancements to existing benefits, targeted benefits or services that address specific needs, or through formal employee assistance or wellness programs. 

In the new world of work, employees are stepping back and re-evaluating employers and their employee experience. Workplace and wellness benefits will play an important role in creating a productive and engaged workforce. 

Patrick Leary is Corporate Vice President, Workplace Benefits Research, at LIMRA and LOMA.