(4-Minute Read)
The average U.S employee is stressed about their finances, with 72% reporting that they’re anxious or concerned because of money worries at least sometimes during the week, according to a recent survey by BrightPlan.
Impact on Employees
*Source – BrightPlan 2022 Wellness Survey
The survey revealed that the impact of financial stress on employees isn’t anything to overlook. For example, 77% reported having impacted their mental health, 52% said it had impacted their physical health, 47% reported lower engagement, and 45% revealed that it had lowered their productivity. With nearly 50% of all employees being affected by financial stress, employers can no longer ignore this growing issue.
Impact on Employers
How has employee financial stress affected their employers? BrightPlan’s survey revealed that over 11 hours of productivity were lost per employee per week. That’s a quarter of the workweek lost due to employee financial stress. Employee retention has also been affected. Another study by PWC revealed that of the 29% of employees currently looking for jobs, 65% say that money is their primary reason. Also, financially stressed employees are twice as likely to look for another job, and 76% of them are attracted to other companies that care more about their financial well-being.
What Do Employees Want?
BrightPlan goes on to reveal what employees are actually looking for from their employers. Of the top 3 benefits shared, financial wellness comes in number 1 at 54% versus the 30% of employees wanting flexible time off. Additionally, 88% of employees expect employers to support them with their financial well-being.
Employer’s Benefits?
The survey showed that if employers provided the right tools and education to their employees that 95% of them believed it would positively impact their lives. Specifically, 60% said they would work harder, 59% would feel more financially secure, 58% would be more engaged and productive, and 34% said they would be more committed and stay longer at their current employer. These results clearly show that with better financial support provided by employers, they would experience greater productivity and better employee retention.
Solution
Along with being a retirement plan provider, Envoy Financial also provides numerous tools and resources to our plan sponsors and their participants. You can find many resources on our website to help increase your employees’ financial literacy. However, what we have found to be most desirable is access to our stewardship advisors. When asked to choose between their employee and other sources of advice, over 70% of employees said they would trust financial advice from their employers over an influencer or youtube. And 70% would trust the advice from a financial advisor over a personal finance blog.
An Envoy Stewardship Advisor is not only equipped to help with proper investment decisions, but they are also here to help craft a comprehensive financial plan for you. Unfortunately, most employees do not have the time or the capacity to do their research and then put together their retirement plan. That’s why we have put together a solution for them where they will feel much more confident about their financial future and have peace of mind that a professional is looking out for them. The first step towards financial peace of mind is to have an introductory call with one of our Stewardship Advisors. This initial call is part of your plan with Envoy Financial, so make sure you make it known to your employees!
Schedule an initial call with one of our Stewardship Advisors today!