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.”
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