Six in 10 hourly workers are struggling financially, with many working multiple jobs just to stay afloat. For retirement plan sponsors, this harsh reality creates a troubling paradox: How can you possibly promote retirement savings to employees who can barely afford groceries?
According to the “State of Hourly Work Report” from HR management firm Deputy, featured in a recent Employee Benefit News article, 62% of hourly workers report financial challenges—21% are unable to cover basic expenses, and 41% are living paycheck to paycheck. This financial instability has led to a rise in “poly-employment,” with 27% of workers holding multiple jobs to make ends meet.
The correlation between financial stability and job satisfaction is clear: workers with greater financial security report higher job satisfaction. The survey found that 46% of financially stable workers can cover expenses with money left over for savings, suggesting that addressing financial wellness could significantly impact retention and productivity.
Beyond financial concerns, the report revealed several other key insights:
- Training disparities exist, with women twice as likely as men to report never receiving workplace training (10% vs. 4%)
- Schedule predictability matters greatly, with 97% of workers supporting fair workweek legislation
- Workers with the highest job satisfaction also report predictable income (72%)
- Generational differences in technology adoption are significant, with Millennials most enthusiastic about AI (50%) while Gen Z expresses more concern (33%)
For retirement plan sponsors and advisors, these findings present strategic opportunities that extend beyond traditional benefits packages. The most successful approaches will likely address the full spectrum of hourly worker needs:
- Financial wellness programs that address immediate cash flow challenges alongside long-term savings goals
- Skills development initiatives focused on technical, industry-specific, and general business skills
- Technology solutions that improve scheduling predictability and facilitate better workplace communication
- AI implementation strategies as part of a broader digital transformation tailored to different generational preferences and needs to improve hourly worker satisfaction and productivity
Traditional benefits packages alone may no longer suffice to attract and retain hourly workers. Instead, employers need holistic approaches that consider financial wellness, professional development, schedule stability, and digital transformation.
For retirement plan advisors, this represents an opportunity to expand service offerings beyond traditional retirement planning. Helping clients develop comprehensive financial wellness programs that address both short-term financial struggles and long-term security could provide significant value.
