The 2024 Employee Financial Wellness Report, conducted by Dynata for Payroll Integrations, reveals a significant disconnect between what employers think they’re providing and what employees actually need in terms of financial wellness support. This brief outlines the key revelations and offers bold strategies for HR leaders to truly support their workforce.
Eye-Opening Findings
Employer Responsibility Perception Gap:
- Employers believe they are adequately addressing employees’ financial wellness, but employees disagree.
- A significant number of employees feel financially insecure, which needs urgent attention.
- Millennials feel the most supported (43%) by their employers, while Boomers feel the least (16%).
Misalignment in Benefit Priorities:
- There is a mismatch between the benefits employers offer and what employees value most in terms of wellness support.
- Employees prioritize health insurance (54%) and retirement plans (43%), while only 12% see financial education as crucial. Are resources being misallocated?
- Generational differences show Boomers prioritize pensions, Gen X/Y prefer additional pay, Millennials value health savings accounts, and Gen Z desires lifestyle benefits. Are these needs being heard?
Impact of Benefits on Employment Decisions:
- The benefits offered by employers can significantly influence job acceptance decisions.
- Employers understand the importance of retirement plans (80%) and health insurance (70%) for attracting and retaining talent. But are they providing them effectively?
Bold Moves to Make a Difference
Revamp Financial Education Programs
- Overhaul financial education initiatives to better meet the diverse needs of each generation.
- Enhance awareness and participation in financial planning benefits, making them more relevant and engaging.
Align Benefit Offerings with Employee Priorities:
- Conduct regular surveys to stay updated on employees’ changing priorities.
- Focus on improving health insurance and retirement plans while considering lifestyle benefits for younger employees.
Promote Financial Stability and Support:
- Develop robust support systems to help employees achieve financial stability.
- Offer practical tools and resources to empower employees in managing their finances.
Bridging the Wellness Gap
The disconnect between employer efforts and employee needs is glaring. By realigning benefit offerings and financial wellness support, HR leaders can not only improve job satisfaction and retention but also foster a more engaged and productive workforce. It’s time to bridge the gap and make a real impact.
