Financial, Retirement Stress Influences Employee Performance
A new report from CAPTRUST reveals how financial stress impacts employees’ personal and professional lives.
The “Financial Wellness Survey Report: Silent Financial Stress in the Workplace,” fields responses from over 4,300 employees across 795 organizations and finds that 62% say they’ve experienced moderate to severe financial stress, with 85% of respondents being from the hospitality industry. Other segments who experience this level of stress include deskless workers (74%), Spanish speakers (71%), women (67%), and mid-career workers (65%).
Another 75% of all workers say the stress has impacted their motivation at work.
“Financial stress is not just a personal issue, it quickly evolves into a workforce challenge that can impact an organization’s bottom line if not addressed,” said Christopher Whitlow, CAPTRUST senior director and head of CAPTRUST at Work. “Our survey supports the premise that when employees struggle financially, their ability to focus and perform at work suffers. Employers who invest in comprehensive financial wellness programs can help build financial confidence, improve retention, and empower a more resilient and motivated workforce.”
For those earlier in their careers, common financial worries were emergency savings, the economy, and debt management. Mid-career and late-career workers stressed over retirement savings, the economy, and emergency savings.
Those who take advantage of financial wellness resources reported smaller levels of severe stress and were likelier to feel on pace with their financial goals. Despite this, workers continue to feel as if they’re falling behind on savings.
It could be the fact that while 40% of employees rank one-on-one advice with financial advisors as the most helpful resource for lessening financial concerns, actual engagement remains low. One in four employees reach out to an advisor for help with financial planning, and only one in 10 turn to an advisor for investment advice, reports CAPTRUST.
The findings theorize that while participants want financial help, existing hurdles including awareness, stigma, perceived relevance, trust, and not knowing where to start could stop them from engaging.
Further, participants who worry about managing debt and building emergency savings could choose to not engage in order to avoid confronting their concerns.
The report recommends several steps for employers to help participants better engage with features. This includes personalizing financial wellness offerings and integrating on-demand access to videos, digital tools, and calculators that help with a range of topics like basic financial skills or building a retirement income strategy and providing access to one-on-one advice.
Employers can also track engagement, outcomes, and employee feedback to understand what benefits are helping participants and what are not, CAPTRUST reports.
Additional findings from CAPTRUST’s research can be found here.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.