Dive Brief:
- More than half (62%) of employers feel "extremely" responsible for employees’ financial wellness, compared to 13% in 2013, according to Bank of America research released Sept. 24. The company's Workplace Benefits Report is based on a nationwide survey of 996 employees and 808 employers.
- When examining employer sentiment regarding employee retirement, the sense of increased responsibility is even greater: 80% reported feeling "very or extremely responsible" for helping employees prepare for retirement healthcare needs and costs, up from 22% in 2012. Seventy-eight percent said they feel responsible for preparing employees for retirement income needs, up from 33%.
- Researchers noted that financial wellness has declined since 2018 and varies by generation. Forty-nine percent of employees rated their financial wellness as "good or excellent," down from 55% in 2019 and 61% in 2018 in March.
Dive Insight:
Most employers in the Bank of America survey said they believe financial wellness and productivity are interconnected. A majority (83%) said employee financial wellness programs and tools aid in creating more "productive, loyal, satisfied and engaged employees." And most employees agreed.
Salary Finance said earlier this year that "organizations are losing up to 13-18% of their salary costs each year due to employee financial stress."
To aid workers' financial wellness, the company has suggested that employers work to determine the needs of employees at all levels of an and identify appropriate solutions. Employers also can give employees an outlet to discuss strategies; focus on progress in financial health, not perfection; ensure employees know how to access available benefits; and measure programs' impact.
