Forward-looking employers, particularly those with many hourly workers, increasingly recognize the need for a “financial security” strategy: that their compensation and benefits offerings should foster a workforce with less financial anxiety and stress. Being able to deliver on that strategy is a key way for HR and benefits professionals to provide incredible strategic value for not just the firm — but also its workers.
According to the Federal Reserve, nearly 40% of Americans don’t have enough money saved to cover an unexpected expense of $400, and that figure rises for female, Black and Latinx people and those making under $60,000 per year. Workplace stress costs employers $250 billion each year. According to MetLife’s annual benefit trends study, 72% of employers say that stress and burnout is a problem at their organization, with financial worries as the top concern. As inflation reaches a 40-year high, it’s inevitable that financial stress will grow. And as family finances top the list of stressors, they also undermine strong work performance: when we’re preoccupied with a problem, we’re less able to focus and less productive.
