Employees are increasingly concerned over the impact an emergency expense could have on their finances, finds new research out today by OneDigital.
The findings show that nearly half (48%) of the 2,000 employees surveyed reported concerns about potential emergencies disrupting their financial goals, with this percentage jumping to 65% for single individuals.
OneDigital’s report notes that 56% of employees feel unprepared to handle major unexpected expenses, even as 63% are consistently saving and 35% look to their employer to provide financial guidance.
The findings show an underlining pattern of financial turbulence, noting that 25% of employees, and 37% of executives, are also contemplating borrowing from their retirement savings.
The research underscores the significance of tailoring employer benefits to workers and dismantling the idea of a “one-size-fits-all” approach on holistic and financial workplace features.
It also underlines the fact that most participants value higher wages in 2024, even more so than other benefits. According to OneDigital, employees from multiple life and career stages said, “being well paid” was much more integral to their job satisfaction than having “access to healthcare coverage” and “financial security benefits.” Others factored remote work options and flexible schedules into their decision to leave an employer or stay.
“One of the biggest challenges for employers is often overlooked – employees’ lives and values are dynamic, affecting their perception of employer support in health, success, and financial wellness,” said Faviana Copeland, vice president of Growth Strategy at OneDigital, said in a statement. “Employers recognize the importance of investing in their workforce, but this study shows a gap between values and current support benchmarks.”
According to OneDigital, actionable takeaways for employers include factoring value data in future benchmark strategies and moving away from overall benefit plans to targeted features that will control costs and “minimize wasteful spending.”
“To truly understand employees, employers must amplify their voices to gain a holistic view of their feelings across key life factors and how they align with the employer’s rewards philosophy, Copeland said. “With the latest insights, leaders can more effectively assess their workforce investments and develop a value-based benefits package that maximizes employee satisfaction and meets their unique needs.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
