Report reveals disconnect between employers and employees on financial wellness
Sixty-five percent of millennials say they are completely in control of their finances compared to 54% of Gen X and Y employees.
Employers want to help employees with financial wellbeing and many have invested significantly in financial wellness programs to help offset the negative effects of an unpredictable economy. Yet, two-thirds of employees continue to experience financial malaise, according to research from Payroll Integration.
The 2024 State of Employee Financial Wellness Report revealed several disconnects between HR and employee perceptions about financial wellness and the effectiveness of programs implemented by employers. For example, nearly half of employers believe they are completely supporting their employees’ financial wellness, but only 28% of employees feel the same, the report said. And while most employers believe they have a responsibility to support employees’ financial wellbeing, only 36% of employees say they feel completely financially stable.
More than 40% of employers indicated they plan to spend even more on financial education and planning offerings next year, but only 18% of employees are interested in the programs they’re currently investing in, according to the report. Instead, health insurance and retirement plans top the list of employees’ benefits priorities, while only 12% are interested in improved financial education and planning benefits.
Asked what tools and benefits are most important to financial wellness, 44% of 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 workers said lifestyle compensation.
“There’s a clear disconnect between what employers think employees want in terms of financial wellness offerings and benefit programs and what employees feel they need to make a difference,” said Doug Sabella, CEO of Payroll Integrations. “Employers need to reassess how they’re providing financial wellness support to their employees. It’s clear they want to support employees’ financial wellbeing, but they’re not aligned on what matters most to help them do so. It’s up to employers to determine where to best put their resources to better support employees on their financial wellness journey.”
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This awareness is important as benefits can make or break a prospective employee’s decision to take a job, the report concluded. A majority of employees say they would not accept a new job offer if retirement plans and health insurance were not offered as benefits.
The report also reveals a generational divide in perceptions of financial stability. Sixty-five percent of millennials say they are completely in control of their finances compared to 54% of Gen X and Y employees, 38% of boomers, and 33% of Gen Z workers.