Nicole Bennion
Senior Culture & Well-Being Consultant, Client & Customer Services
According to an Equitable report, 96% of Americans worry that an unexpected medical expense could seriously affect their financial goals. More than 25% of that group say a bill of less than $1,000 would cause financial hardship. Financial concerns are a primary source of employee stress, which can negatively impact employee well-being.
Employee well-being includes more than physical health.
Employee well-being is influenced by several factors: physical health, mental health, community and social relationships, career satisfaction, work-life balance, and financial concerns.
All these aspects contribute to an employee’s overall well-being. They are interconnected, and stress in one area may affect others, potentially impacting physical and mental health.
Financial worries are a major source of employee stress.
A MetLife study identified two main financial factors contributing to employee stress:
- Rising medical costs: 77%
- Economic uncertainty: 68%
Employees often worry about whether they’ll have enough money to afford housing, retirement, groceries, daycare, or medicine.
According to the MetLife study:
- 72% say high inflation and market volatility have increased their financial stress.
- 61% fear they won’t have enough money for out-of-pocket medical costs.
- 43% report risking job burnout due to financial stress.
- 73% say they would consider leaving their current job if another employer showed more commitment to their financial future.
Financial stress affects employees across income levels. A PwC Employee Financial Wellness Survey found that 47% of those earning $100,000 or more annually still experience financial stress.
What about employees who are meeting their financial goals?
According to the MetLife survey, employees who are meeting their financial goals experience 38% less stress and feel 41% less tired than those who frequently worry about their finances.
They tend to be more productive and engaged, report higher job satisfaction, and are more likely to expect to stay with their current employer over the next year.
Four key elements of financial wellness
These elements are generally recognized as important components of financial wellness:
Control of day-to-day finances
Having enough money to cover basic expenses without misusing credit cards or relying heavily on them.
Financial freedom to make choices
The ability to live the life they want, invest, change careers or jobs without financial concern, donate generously, and more.
Capacity to absorb a financial shock
Having enough savings to handle unexpected bills such as medical costs, housing repairs, or car troubles.
On track to meet financial goals
The ability to pay bills and save money for future purchases or retirement.
How to recognize when an employee may be experiencing financial instability
Employees may feel embarrassed about their financial situations, so they might not openly discuss them. However, there are several signs that could indicate an employee needs support with their financial well-being:
- Problems with getting to and from work
- Childcare challenges
- Family care issues
- Unplanned absences
- Behavioral changes
- Lack of motivation
- Requests for salary advances or urgent withdrawals from retirement accounts
When employers support employees’ financial well-being, it may improve productivity, job satisfaction, engagement, focus, and overall mental and physical health.
What can you do to help?
A recent T. Rowe Price survey found the most important types of help employers can provide:
- Help to build emergency savings: 32%
- Basic financial education: 31%
- Advice on how and when to claim Social Security: 22%
- Tax planning: 21%
- Investment advice and education: 20%
- One-on-one financial coaching: 17%
- Budgeting tools: 11%
- Student loan repayment assistance: 11%
To offer this kind of support, employers can provide:
- Financial education resources
- Voluntary benefits related to finances
- Education on FSA/HSA benefits
- Financial well-being resources
- Information on free online resources
MMA can help you support your employees.
Help employees gain peace of mind by showing that you care about their financial goals. Marsh McLennan Agency (MMA) can assist in providing access to financial wellness programs tailored to your employees. From monthly webinars and self-help resources to individual financial coaching sessions and student loan benefit solutions, you can take advantage of the financial wellness tools offered by MMA.
