This Resource can Help Employers Improve Financial Security at Work

Recent research and data suggests that financial insecurity is a pervasive problem in the workplace today. Compounding this issue is the effect that this insecurity has on workers’ well-being. In 2017[1]:

  • 53% of employees in the US found dealing with their personal finances stressful.
  • 50% worried about having enough emergency savings for unexpected expenses.
  • 42% found it difficult to meet their household expenses on time each month.

As a result, workers are enduring detrimental health outcomes[2]:

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Research indicates that workplace financial wellness services are a win-win for both employers and their employees:

  • For employers: early reports link the offering of financial wellness services at work to reduced absenteeism, improved productivity, reduced distraction, and increased employee engagement and organizational commitment.[3]
  • For employees: previous employee surveys found that the financial wellness services they received at work helped them feel better about their finances and start making changes to their financial behavior (e.g., budgeting, saving, making payments on time).[4] Employers reported that they observed outcomes like decreased requests for 401(k) loans and pay advances and increased uptake of financial accounts.[5]

On September 19, the Center for Social Development (CSD) hosted a conference at their offices at the Washington University in St. Louis that brought together academics, financial wellness service providers and employers with the aim of advancing the workplace as a platform for prosperity. At the conference, Prosperity Now and CSD launched the Workplace Financial Wellness Services Directory. This Directory is a space where employers can learn about financial wellness services and their components as well as ultimately connect with the services that best fits the needs of their employees.

Since financial insecurity in the workplace is a complicated and pervasive issue it requires continued and diligent efforts and resources to rectify it. To help, Prosperity Now developed additional tools and resources as part of a workplace financial wellness portfolio. These resources include:

Financial insecurity is a serious issue that must be addressed. By working side by side with partners and employers and employees, we can make progress towards helping individuals achieve their goals and advance their financial security. As we develop new learnings, tools, and resources around workplace financial wellness services, including emergency savings and retirement savings, we will continue to share these with the field. Sign up for the Prosperity Now Monthly Newsletter and check out our Workplace Financial Wellness page to learn more.

 


[1] Kent E. Allison and Aaron J. Harding, Employee Financial Wellness Survey (Florham Park, NJ: PwC, 2017), https://www.pwc.com/us/en/private-company-services/publications/assets/pwc-2017-employee-wellness-survey.pdf.

[2] Global Benefits Attitudes Survey 2016 Highlights (Arlington, VA: Willis Towers Watson, 2016), Slides 7 and 13,

https://www.slideshare.net/TowersWatson/global-benefits-attitudes-survey-2016-highlights.

[3] Geraldine Hannon, Meredith Covington, Mat Despard, Ellen Frank-Miller and Michal Grinstein-Weiss, Employee Financial Wellness Programs: A Review of the Literature and Directions for Future Research (St. Louis, MO: Center for Social Development, 2017), https://csd.wustl.edu/Publications/Documents/WP17-23.pdf.

[4] Ibid., 9.

[5] Guiding Participants from Intent to Action: 2016 Defined Contribution Plan Participant Survey Findings (New York: J.P. Morgan Asset Management, 2016), https://am.jpmorgan.com/blob-gim/1383355132245/83456/RI-WP-DCPPR16_FINAL.pdf.

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