Helping Employees Navigate Financial Stress: Prioritizing Support Resources During Open Enrollment

Financial stress within U.S. households continues to grow as prices for almost everything in the budget reach record highs. To add more fuel to the flame, all forms of consumer debt are steadily increasing, and there doesn’t seem to be an end in sight. With this as the backdrop, the 2023 PricewaterhouseCoopers (PwC) Employee Financial Wellness Survey was recently released and reported a number of concerning trends:

1. “Inflation woes are top of mind for employees: 53% say they are most worried about their expenses increasing/everything costing more.”¹
2. “Sixty percent of full-time employees are stressed about their finances. Even among employees earning $100,000 or more per year, nearly half (47%) are stressed about their finances. What’s more, financial stress impacts a wide range of employee health and well-being areas, from mental health to sleep to self-esteem.”¹

Other studies and surveys reinforce the depth and breadth of financial stress in the workforce. In a recently released study by the Employee Benefit Research Institute, it was reported that for the first time since the inception of their annual Workplace Wellness Survey, “workers report that having enough savings for an emergency and paying monthly bills are the financial issues that cause the most stress. In years past, saving enough for retirement held the top spot….”²

Unfortunately, there are other workplace dynamics at play as many organizations deal with their own rising cost structures and try to prepare for an economy that may go into a recession. Some employers are offering early retirement packages, reduced hours, or lower wage growth than what their employees expected. These organizational changes may increase the stress and distraction already in the workplace.

Actions for HR Professionals to Consider

1. Assess your financial well-being program and ensure its services focus on employees’ immediate household budget concerns. In a recent survey conducted by the My Secure Advantage® (MSA) financial well-being program, 67% of 1,421 survey respondents said they do not maintain a balanced budget.³ This is an example of short-term money management skills for which employees need help. Ensure your program’s money coaching services have a history of helping employees with budgeting, debt management, credit improvement, and growing savings.
2. Review your financial well-being program communications. The PwC study highlights the importance of offering employees one-on-one financial coaching services; furthermore, they emphasize that how these services are delivered is critical. “While retirement plan providers are often a source of financial advice, employees across all generations say they would most trust an objective financial advisor not tied to financial products or the company retirement plan.”¹ To what degree are employee communications focused on specific benefit programs (such as your organization’s retirement plan) versus resources that can help employees address any financial goal or challenge?

To learn more about the MSA financial well-being solution and how to help employees improve their overall well-being, contact us today.

My Secure Advantage, Inc. or any of its representatives do not endorse any of the websites or company names listed here.

¹ PricewaterhouseCoopers. “PWC’s 2023 Employee Financial Wellness Survey.” PwC, www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html. Accessed 16 Oct. 2023.

² 2023 Workplace Wellness Survey, Employee Benefit Research Institute and Greenwald Research: https://www.ebri.org/docs/default-source/ebri-press-release/pr-1338-wws2023-8oct23.pdf?sfvrsn=e75e062f_4 Accessed 16 Oct. 2023.

³ Based on My Secure Advantage Inc. member survey data collected from attendees prior to a live streaming event in August of 2023.