According to a new Bank of America survey, 84% of employers say offering financial wellness tools can increase employee retention.
The investigation is timely as the debate over the big resignations continues and employee retention remains a top concern. Nearly half (46%) of employers saw their turnover increase last year, according to a new report.
The bank’s 12th annual report on workplace benefits, “Navigating a New Era of Financial Wellness,” comes at a time when workers are once again stressed about the economic situation. recession.
Lorna Sabia, Head of Retirement and Personal Wealth Solutions at Bank of America, said: “We are committed to partnering with employers to deliver financial wellness solutions through a holistic and integrated approach that works for all employees.”
FINANCIAL WELLNESS BENEFITS — A Rising Employer Trend
There seems to be a general consensus among employers that workers need more help in the area of financial health. This may be based on stories you hear from employees. The survey found that he 97% of employers feel responsible for the financial health of their employees (up from 95% in 2021 and 41% for her in 2013). And two-thirds (62%) say they feel very responsible (up from 56% in 2021). ). The same survey found that 82% of employees said employers should play a role in supporting their employees’ financial health.
Also, a significant number of employees seek help with investments. 40% of his employees said they seek advice from investment professionals, and 62% of employers offer their employees access to investment advice services (he in 2021 (up from 55%).
The recent bad news about the economy has increased stress for employees thinking about retirement. The survey found that 56% of his employees are confident.
It will reach its retirement goal, down from 69% in February 2022. 74% said investing in a 401(k) or other account helped them build their retirement nest, and 61% said it did. enough to maximize employer matches.
At the same time, most employees are short-term optimistic. Looking back two to three years, the survey found that most employees are optimistic about their financial (56%), social (60%) and mental (62%) health. said.
The study also found differences in financial wellness by gender, ethnicity and age. For example, women are less likely to be confident that they understand financial issues, with 69% of women saying they do not understand social security benefits compared to 54% of men. increase. Nonetheless, the survey shows that the gender gap in financial wellness is closing. “As of July 2022, women are 5 percent less likely to be financially satisfied than men.
This is down from 10 percentage points in 2021 (47% of women vs. 57% of men) and 17 percentage points in 2020 (41% of women vs. 58% of men). male)”
All groups said they were not doing very well financially, but minority employees are more financially stressed than white/white employees. 49% of employees say they are doing well financially (56% in February), 37% of Asian employees (67% in February) and 33% of Hispanic/Latino employees (47%) followed. 32% of Black/African American employees (50% in February).
At the same time, all age groups said they felt financially unwell, but younger workers were more worried than older workers. The survey found a drop in financial well-being since February: -15% for Gen Z/Millennials, -14% for Gen X, and -10% for Boomers/Silents. understood.