Employee financial well-being is trending down as employees face mounting financial pressures and stress, according to a new report — and they're increasingly looking for help from their employers.
Just 47% of employees feel financially well-off, a drop from the 52% who said so at the start of the year, according to new data from Bank of America. That's a regression to the same level measured in 2024. Given the drop and confluence of economic pressures in flux, it's a trend employers should monitor, especially given that levels may decline further.
Significantly, the drop in feeling of financial wellness is prompting more employees to look for help from their employer: Twice as many U.S. workers are currently looking to their employers for guidance and resources around near-term financial needs, compared to two years ago.
Waning financial well-being is just one recent development in the total rewards space. Here's a look at other recent benefits and compensation news and trends.
Can Compensation Statements Bridge the Benefits Satisfaction Gap?
Total compensation statements, which provide the total monetary value of employer-paid benefits and are shared with employees to paint a comprehensive picture of what's being provided, can help solve age-old issues around low rates of employee understanding and satisfaction, but they aren't used enough. Recent data from LIMRA, an insurance industry trade association based in Windsor, Conn., found that just 42% of employees say they receive these statements.
That's a problem, and one that employers would be wise to address, experts say.
Massachusetts Pay Transparency Law Takes Effect in October
Starting Oct. 29, Massachusetts' pay transparency law will require employers to disclose wage ranges in job postings and upon request to applicants and employees. Learn what employers need to know.
How Financial Wellness Programs Fall Short — and How to Fix It
Financial wellness, financial literacy, and financial education have all been gaining attention over the past several years. The problem, said Jean Chatzky, financial journalist, founder and CEO of multimedia company HerMoney, is that a lot of efforts around those topics are falling short — including in the workplace.
"We aren't blowing down any doors," Chatzky said during a recent SHRM webinar, explaining that a significant number of employees still face low financial literacy, don't often stick to a budget, don't have emergency savings, and have significant financial stress. But there are several steps employers can take to improve their financial wellness offerings.
Rising Caregiving Costs Take Toll on Employee Well-Being
Rising health care costs, long-term care expenses, and the hidden mental load of caregiving are not only reshaping personal lives, but also affecting the workplace. As rising caregiving costs strain employees' health, careers, and productivity, HR should respond with flexible policies, benefits, and support.
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