More employees are experiencing financial stress, with nearly 90% expressing concerns about their finances. Despite significant salary increases in 2023, almost half of the workforce feels unprepared for emergencies or retirement. Employers can play a crucial role in alleviating this stress through innovative benefits that enhance financial well-being and business performance.
SoFi at Work's latest report, "The Future of Workplace Financial Well-Being: 2024 Employer & Employee Perspectives," highlights these issues. Michael Bourgeois, Vice President and Business Lead at SoFi at Work, stated, “In many ways, this data proves what we instinctively know: The economy is weighing heavily on everyone’s minds, and financial stress is affecting employees’ day-to-day lives and work performance.”
Financial stress affects mental health for 47% of employees, up by 11% from previous findings. It also impacts motivation and physical health, with some delaying medical care due to costs. Offering financial well-being benefits can reduce employee stress by up to 13%, and three-quarters of employees indicate these benefits increase their loyalty to employers.
The SECURE 2.0 Act allows employers to assist with student loan payments via retirement plan contributions. This benefit is gaining traction as HR leaders aim to implement it in 2024. Additionally, emergency savings funds have become a priority for many employees.
Communication gaps exist between HR leaders and employees regarding available benefits. While most HR leaders claim regular communication about benefits, only two-thirds of employees report receiving such information recently.
Bourgeois emphasized the importance of supporting employees: “Making employees feel supported during these challenging times doesn’t have to cost a lot of money, and in fact, it may cost your company less in the long run.”
The survey conducted by CITE Research involved 1,500 HR leaders and employees aged 18-70 from September 28 to October 13, 2023.
For more details on the report visit [SoFi's website](https://www2.sofiatwork.com/2024FutureofWorkplaceFinancialWellbeing).