New research has confirmed that employee health, morale and productivity is falling as financial stress rises post-pandemic.
As the world begins to shift from a pandemic to an endemic state, the impact from the financial toll on US full-time employees continues unabated. Over the past year, 54% of full-time employees struggled to cover monthly living expenses. These results reflect how financial pressures have increased for most full-time employees, revealed The State of Employee Finances: 2022, A Purchasing Power Report; the second annual survey conducted by The Harris Poll on behalf of Purchasing Power, a voluntary benefit company.
According to the poll, 37% lived pay cheque-to-pay cheque while 17% were unable to cover monthly living expenses. Around 44% had difficulty paying monthly bills on time; and 16% nearly or fully maxed-out their credit cards from overuse during the pandemic. Additionally, 24% have postponed purchasing a major appliance, electronic or other needed item until their finances improve.
EMPLOYEES EXPERIENCING INCREASED FINANCIAL STRESS
Additionally, full-time employees are experiencing increased financial stress across the board, compared to last year. The report found that:
- 28% confirm it affects their ability to focus at work (up from 24%).
- 34% report it affects their physical health (up from 33%).
- 45% say it affects overall stress at home (up from 39%).
- 25% claim it affects their job satisfaction (up from 21%).
- 50% believe it affects their sleep (up from 45%).
- 46% confirm it affects their overall happiness (up from 43%).
EMPLOYER RESPONSIBILITY
“What is surprising is that these results aren’t exclusive to households with lower incomes. Our report shows that among households with income of $100,000 or more over the past year, 17% have been unable to cover monthly living expenses; and 25% have lived pay cheque to pay cheque, barely covering monthly living expenses,” stated Trey Loughran, CEO of Purchasing Power. “Over seven in 10 full-time employees (72%) believe that employers have a responsibility to help employees improve their financial wellbeing. The good news is that employers can take action with more robust and comprehensive voluntary benefits offerings that include a holistic approach to employees’ financial wellbeing. In fact, 80% of full-time employees say the benefits their employer offers has an impact on their decision to stay at their current job.”
This report “provides us with a clear indicator of what employees’ financial situation and financial stress levels are today; and where we can expect them to be in a year from now”, continued Loughran. “The survey also shows that employers who implement a spectrum of financial wellbeing benefits will gain from increased employee performance and retention.” For further information about the Purchasing Power Report click here.
Companies that provide staff financial wellbeing support as part of their employee benefits programme, can reduce staff turnover by a third, revealed another study. Click here to read more.
Another recent survey showed that one in five staff say their employer is not doing enough to support their financial wellbeing. Click here to read more.
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