Heartbreaking news from financial wellness pioneer Financial FinesseThe survey found that financial stress levels were as high as in 2008, when the housing and financial crises collapsed much of the global economy.Company’s Financial Wellness in the American Workplace An annual report on America’s workforce through the lens of economic health paints a bleak picture. financial stress The highest levels were reported among blacks and Hispanic Americans and single parents.
This study analyzed employee levels of financial stress and resilience and reported on how employees feel about their finances and the impact of financial stress on their physical and mental health. bottom.
“Looking at today’s headlines, it’s no wonder employees are facing such high levels of financial stress.” Liz Davidsonsaid the founder and CEO of Financial Finesse in a statement. “As a society, we cannot afford to ignore the severe consequences of high economic stress, including declining mental and physical health, employee dissatisfaction and reduced productivity.”
The good news, she added, is that most employees see “dramatic financial improvements in a relatively short period of time” when they receive ongoing financial coaching.
Key findings from the annual snapshot include:
- A 34% increase in employees reporting unmanageable financial stress. This has fueled our employees’ concern for the U.S. economy and our ability to maintain our ability to remain in control of our current financial situation. For example, their biggest source of stress is the US economy and stock market and how it will affect their financial future (43%).
- In 2022, black and Hispanic populations were 38% and 28% less likely than white populations to have positive cash flow, respectively.
- Single parents report experiencing unmanageable financial stress most frequently (57%), followed by single adults without children (28%) and married parents (23%). Childless couples were least likely to report unmanageable financial stress (15%).
- The share of economically resilient workers fell from 37% in 2021 to 32% in 2022, a direct result of inflationary pressures on households.
- Employees who participated in financial coaching achieved great results. His 89% of employees who adjusted spending to increase retirement savings now have enough to receive their employer’s full retirement benefits. 72% of those who adjusted their spending toward their goal now save regularly toward their goal. And 65% of those who planned every paycheck to cover their bills were able to pay their bills on time.
- Custom financial wellness programs that target employees of color are particularly effective. A large study tracking the impact of customized programming and coaching for Black and Hispanic employee resource groups found a 25% reduction in participants reporting high levels of financial stress and increased financial resilience. We found that there was a 23% increase in the number of employees considered to be In addition, his post-retirement confidence has doubled.
“Despite the solutions in place to address this problem, it is unacceptable that a whopping 64% of the country’s workforce is living paycheck to paycheck with no economic cushion.” added Greg Ward, director of the Financial Wellness Think Tank and one of the report’s authors. “It is amazing to see the growth in employee financial wellness programs, but to truly restore upward mobility, especially to younger generations, employers of all sizes must come together on this issue and should be at the center of our employee engagement.”
Download the full US Workplace Financial Wellness Report here.