Employers Say They’re Setting Employees Up for Financial Wellness; 72% of Workers Disagree
June 27 2024 - 8:00AM
Business Wire
Payroll Integrations’ 2024 State of Employee
Financial Wellness Report Reveals Disconnect Between Employers and
Employees on Financial Wellness Support and Employer-Sponsored
Benefits
Payroll Integrations, the technology company that’s reimagining
how employers support employees’ financial well-being through
benefit automation, has released the first part of its two-part
2024 State of Employee Financial Wellness Report. The inaugural
report reveals a disconnect between the role employers believe
they’re playing in employees’ financial well-being and how
supported employees feel. Nearly half (49%) of employers
believe they’re completely supporting employees’ financial
wellness, while only 28% of employees feel the same. While
most employers (95%) believe they have a responsibility to
support employees’ financial well-being, only 36% of
employees say they feel completely financially stable.
Payroll Integrations’ 2024 State of Employee Financial Wellness
Report explores financial wellness from the point of view of both
employers and employees. The report shines a light on the
differences between employers’ and employees’ feelings towards
benefits, including which benefits they each identify as most
important and where they’d like more support. The new report also
reveals a generational divide in financial stability and the
importance of specific benefits.
“Employees are feeling the financial pressure from inflation,
higher costs of living and the rise of insurance costs and now,
more than ever, employers feel a responsibility to step in to help
support their financial well-being. But, there’s a clear disconnect
between what employers think employees want in terms of financial
wellness offerings and benefit programs–and what employees feel
they need to make a difference,” said Doug Sabella, CEO of Payroll
Integrations.
The two-part report is based on research conducted by market
research firm Dynata, on behalf of Payroll Integrations.
Among the findings:
- Employers are investing in benefits they find important–but
it doesn’t align with employees’ priorities. While many
employers (41%) say they plan to spend even more on
financial education and planning offerings next year than they are
now, only 18% of employees are interested in the programs
they’re currently investing in. Employees prefer that employers
invest more in health insurance (54%) and retirement plans
(43%).
- Older generations prioritize healthcare and retirement,
while Gen Z employees want employers to prioritize lifestyle
benefits. Following retirement (73%) and healthcare
(72%), the four generations vary in what benefits they say
are most important to their financial well-being. Forty-four
percent (44%) of Boomers (ages 59+) say pensions are most
important, 46% of Gen X and Y workers (ages 43-58) say
additional compensation, 31% of Millennials (ages 27-42) say
Health Savings Accounts (HSA/FSA) and 38% of Gen Z employees
say lifestyle compensation (ages 18-26).
- The benefits that employers offer can make or break a
prospective employee’s decision to take a job. A majority of
employees say they would not accept a new job offer if retirement
plans (67%) and health insurance (65%) were not
offered as benefits. Employers are aligned with this, and consider
retirement plans (80%) and health insurance (70%) as
the most critical benefits to attract and retain employees.
- Millennials have the highest sense of financial
well-being. Millennials (ages 27-42) deem themselves
financially well, more than other generations. Sixty-five
(65%) of Millennials say they are completely in control of
their finances compared to 54% of Gen X and Y employees
(ages 43-58), 38% of Boomers (ages 59+) and 33% of Gen Z
workers (ages 18-26). Millennials (41%) also feel the most
financially stable, compared to Boomers (38%), Gen X and Y
(36%) and Gen Z (27%). Gen Z employees have only been
in the workforce for a few years, which is likely why they have the
lowest confidence in their financial status.
“Employers need to reassess how they’re providing financial
wellness support to their employees. It’s clear they want to
support employees’ financial well-being, but they’re not aligned on
what matters most to help them do so, ” Sabella continued. “It’s up
to employers to determine where to best put their resources to
better support employees on their financial wellness journey.”
Payroll Integrations’ 2024 State of Employee Financial Wellness
Report is based on responses from 250 full-time employees and HR
leaders between the ages of 18 and 65. You can find the full report
here.
About Payroll Integrations:
Payroll Integrations is the technology company that’s
reimagining how employers support employees’ financial well-being
through benefit automation. Their integration platform is used by
more than 4,000 businesses to connect payroll with retirement, HSA
and other employer-sponsored benefit plans for over one million
employees. Payroll providers including ADP, Paychex, Quickbooks
Online and others use Payroll Integrations to seamlessly connect
with 401k benefit providers such as Empower, Transamerica,
Principal, VOYA and John Hancock. Payroll Integrations is backed by
Arthur Ventures and headquartered in San Diego.
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Kieran Powell kieran.powell@channelvmedia.com