Employees need help from their employers as nearly nine in 10 Americans say the pandemic has created financial challenges for their household. This according to the National Endowment for Financial Education (NEFE). Employees’ financial challenges are not likely to dissipate anytime soon.
As a result, employees need help and they are increasingly looking to their employers for that assistance according to a Prudential survey. The survey is titled “Pulse of the American Worker Survey: Road to Resiliency”.
The survey addresses head-on that employees need help to bolster their financial resiliency and relieve their financial stress.
The majority of workers (68%) are worried about their financial security. That is an increase of 11 points since March 2019, according to Prudential. The pandemic has had a profound impact on people’s personal finances. This concern is heightened among employees who do not have access to employee benefits. That is more than 7 in 10 workers without benefits who are worried about their financial security. Almost half of a firm’s employees need help and are very worried. Employees view benefits as critical to their own financial resiliency. Benefits such as retirement plans, health insurance, family medical, leave and emergency savings are highly valued by employees.
Respondents’ lack of emergency and retirement savings were the biggest concerns when employees need help. A respective 65% and 72% said these issues were their most challenging obstacles to achieving financial security. Other concerns exacerbated by the pandemic, include high debt and lack of investment knowledge. This also according to the Prudential survey.
Workers see employer-provided benefits as the key to alleviating financial stress when employees need help. Two-thirds of workers with access to employer-sponsored benefits said their benefits had grown in importance since the pandemic began. And a revealing, 68% said their employer-provided benefits allowed them to be more focused at work. Especially meaningful to employers is the topic of retention. The survey disclosed that 80% of survey respondents said they were likely to stay with an employer who demonstrated a commitment to helping them. That commitment strengthens an employee’s financial resiliency.
Employees are more open to receiving financial advice than they’ve ever been. Employees need help, and they are specifically open to their employers’ help. Nearly 8 in 10 workers (77%) want their employers to offer benefits that focus on financial well-being.
That is good news for employers who offer financial wellness programs! Benefits, such as student loan repayment assistance, can also help employees better manage their money and reduce their financial stress. Employers should continue to leverage all benefits while employees need help. Employers should take an active role and work with their service providers to deliver robust experiences and support. This helps employees overcome money challenges and increases their feelings of financial security. The additional benefit to the employer is the resulting employee resiliency, while simultaneously improving loyalty and retention.
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