Employee wellbeing nears record lows
Many Americans report declines in their physical, mental and financial health in recent years, but the largest factors contributing to the negative trends are largely financial.
Although there have been a number of recent positive economic signs, including plummeting unemployment rates and surges in the financial markets, many American workers are still having a hard time financially. In fact, nearly half of workers (48%) cited “money/finances” as the top source of stress in their life, up significantly from 37% in 2021.
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When asked about their top financial concerns, 49% mentioned having sufficient emergency savings, 48% cited having enough retirement savings to last, and another 48% said having a source of guaranteed income during retirement. Other significant financial concerns included being financially prepared in case of missed work due to disability or illness (44%) and paying off/reducing household debt (42%).
Employees are well aware of their financial vulnerabilities, with 4 in 10 workers reporting living paycheck to paycheck and only a third (36%) describing themselves as very good at managing their personal finances.
To make matters worse, few employees feel that their companies’ employee benefits are doing enough to address their physical (25%), emotional (25%), and financial needs (23%). But employers have a different view, saying that addressing employees’ mental (46%), physical (66%), and financial health (74%) is very important to them.
This disconnect is cause for concern, as half of Americans (46%) said they would face financial hardship without workplace benefits, yet just 1 in 4 said their company’s benefits positively impacted their financial security.
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Benefits advisors and employers can turn these concerns into opportunities through better communication and more streamlined solutions, according to Jonathan Mayhew, head of group benefits at Guardian.
“Employers and brokers have a unique opportunity to help support employee financial wellbeing,” he said. “As open enrollment approaches, one of the best ways to support employees’ financial wellness can be through the use of clear, concise, and engaging language in benefits communication. Offering enrollment support, whether through digital decision support tools or access to benefit counselors, can also help ensure employees enroll in the right benefits that meet their needs.”