It’s no secret that employees are stressed—but according to Gallup, stress levels have been skyrocketing to record highs with mixed intervention from employers.
And while the specific sources of stress vary between organizations, most workers collectively agree that their biggest source of anxiety is financially motivated.
As PwC’s 2023 Financial Wellness Survey highlights, 57% of the world's workforce cite financial worries as the top cause of stress, impacting how individuals concentrate on the job and engage with their work. Moreover, thanks to external factors like inflation and rising interest rates, these money worries can also escalate other health problems, including depression, lack of sleep, and even hypertension.
But financial stress doesn't just end with poor employee health outcomes. When workers are consumed by thoughts of rising grocery costs, impending payments, and strict holiday budgeting, their resulting disengagement and decreased satisfaction can increase their likelihood of leaving—spelling a huge problem for retention rates.
While simply increasing pay isn't always the most feasible or effective solution, organizations have an abundance of resources at their disposal to take financial burdens off employees' shoulders and improve their day-to-day wellbeing. But before that can be accomplished, employers must have a clear understanding of what their employees are struggling with from a financial standpoint.
Following nearly three years of economic turmoil stemming from the pandemic, 2022 actually saw a meaningful rise in pay for many workers, with U.S. companies increasing wages by 3.4% on average.
For some employers, these rising labor prices might seem like enough to improve financial stability. But between elevated levels of inflation, sky-high interest rates, and deepening household debt, U.S. workers might be doing worse than before.
To understand how to best support employees with their unique financial burdens, let’s take a closer look at some of the key financial issues impacting individuals across the country.
Personal finance issues aren't always an employee's preferred topic of discussion, especially with employers. This can make money stress hard to identify or distinguish between other health or wellness issues.
However, the consequences for organizations are clear and measurable:
Curious how your organization can cultivate financial wellness across all levels of your workplace? Discover the dos and don’ts of financial literacy programs and effective methods for minimizing financial stress in our latest webinar with Lindsay Bryan-Podvin.