Stress alert! Majority of workers worry about household finances and debt

We all know employees are stressed these days. But a new survey reveals just how concerned American workers are about finances, workplace wellbeing, reduced hours, and layoffs.

The “2023 Workplace Wellness Survey,” a joint project of Greenwald Research and the Employee Benefit Research Institute, gathered feedback from more than 1,500 full-time and part-time workers between the ages of 21 and 64. Three out of 4 indicated their debt level is a problem, often citing credit-card and medical bills. Nearly half (46%) said a health emergency has contributed to their debt.

Additionally, many respondents cited such financial stressors as having enough savings for an emergency, paying monthly bills, saving enough money for retirement, and job or income security. This is the fourth annual survey, and the first one in which saving for retirement was not the primary financial stress factor.

“Instead, we found that day-to-day issues like emergency savings and paying for household bills are top of mind for workers,” Jake Spiegel, a research associate for EBRI’s Health and Wealth Benefits, said in a statement.

The challenge for employers, researchers added, extends beyond workers’ financial concerns.

“A third of workers report concern about their emotional wellbeing or mental health, and half say they often or always feel stressed — and that impacts their performance at work,” Greenwald Research CEO Lisa Greenwald said in a statement. “But workers are torn on how well their employer communicates about mental health and work-life balance. Only 37% rate their employer’s communication as excellent or very good, while a nearly equal number, 35%, rate it as fair or poor.”

Other significant findings:

• More than half of survey respondents (52%) expressed moderate to high concern over their household’s financial wellbeing, down from 60% last year, perhaps due to improvements in the overall economy. But most said they continue to be concerned about inflation, a possible recession, and rising housing costs. They also worry about the possibility that employers will reduce hours and benefits, cut wages, and lay workers off. More than half of workers (57%) do not feel financially prepared for reduced hours or temporary unemployment.

• Only half (51%) of workers were satisfied with their current jobs, down from 59% last year. A similar number said they are likely to stay with their current employer for the next two years.

• Nearly 8 in 10 workers were at least somewhat satisfied with their employee benefits package, similar to last year. More than half of employees (54%) said a greater financial contribution from their employer would be a valuable improvement to benefits programs.

• Health insurance and retirement plans were cited as the most important benefits, followed by paid time off, dental or vision insurance, and flexible work (hybrid or remote) arrangements.

• Company culture was cited by 61% of respondents as having the greatest negative impact on their overall wellbeing.

• One in 4 American workers is an unpaid caregiver to a family member, devoting an average of 21 hours per week to caregiving duties. Of that group, 44% have spent their own money on caregiving expenses, 25% have reduced their work hours, 20% have taken on additional debt, and 18% have reduced the amount they contribute to their retirement savings plan.

• Only 44% of workers said their employer offers a financial wellness program, down from 56% last year. Nearly half (47%) say their employers offer health wellness programs.

Related: Financial stress is costing employers $4.7B a week in productivity

• Nearly 7 in 10 workers (68%) agreed that their employer has a responsibility to ensure their employees are financially secure and well. An even higher number (79%) indicated their employer has a responsibility to make sure employees are mentally healthy and emotionally well, while 74% said that responsibility extends to physical health.