Frontline Workers Report Increasing Financial Stress
Frontline workers are feeling a growing amount of strain on their finances. Artificial intelligence (AI) technology could help curb the stress, reports a new study.
Research from UKG, an AI platform for human resource (HR) and workforce management, surveyed 8,200 global workers on topics including job satisfaction, burnout, overtime, and compensation. It found that financial wellness is among the top issues for frontline workers today, followed by work schedule flexibility and career advancements.
The survey found that 76% of frontline employees—who include workers in retail, hospitality and food service, healthcare, logistics and distribution, manufacturing, public sector, and field and contract services—report feeling burnt out. These workers are generally unafforded benefits like remote working and other employee experiences, leaving many feeling overworked, UKG notes.
Receiving lower pay is another barrier to financial satisfaction and is a common reason as to why workers choose to move on from their roles. Collecting a smaller salary was listed as a top reason for resignation, with 51% of frontline employees in non-acute healthcare systems (ex: clinics, outpatient services, dentistry) saying they would leave an employer who offered little pay. Forty-four percent of frontline employees in acute healthcare systems and 38% in long-term/aged care would leave their jobs for this reason as well.
A smaller number (26%) of frontline workers would move on from a job if it didn’t offer recognition or rewards, or if it had a lack of benefits.
“Knowing the underlying pain points frontline employees are facing, such as lack of flexibility and visibility of work schedules, challenges building skills needed for advancement, and general financial strain are crucial to understand,” said Rachel Barger, president of Go-to-Market at UKG, in a statement. “This understanding supports leaders to improve employee engagement and retention by knowing where to step in to provide support, and where technology can help ease some of the burdens.”
UKG recommends employers utilize AI technology to streamline scheduling and shift swapping and organize access to wages and benefits. Employers and advisors could also use AI to anticipate the needs of frontline workers and offer personalized guidance and advice.
“Contrary to many fears, this research shows that AI can play a crucial role giving frontline workers flexibility, agency, and financial security at work,” said Josh Bersin, founder and CEO of The Josh Bersin Company, a consulting firm. “When implemented well, AI gives frontline workers better information, flexibility, and power over their daily work and financial lives.”
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.
