Employees are working in unsettling times. Inflation is outpacing wage increases and the cost of living is skyrocketing. Financial insecurity is now a real concern for all generations as Gen Z strives to fund the basics of the American dream—like owning a home and accumulating savings—and Baby Boomers see their retirement savings dwindle.
This concern isn’t just about compensation, although the data indicates that this is an important factor for employee retention. A new study by Talent LMS and Tapcheck looked into financial programs in the workplace and revealed that employees are also hungry for financial advice, guidance and resources to help them navigate the rising cost of living, finding that 78% of employees say they want support from their employees when it comes to financial well-being.
A meager 5% of employees believe they have met their financial goals, and the other 95% point to inflation (62%) and insufficient income (48%) as the barriers holding them back. Financial wellness training, which survey respondents described as retirement planning, investment programs and emergency savings, not only improved employee satisfaction, majority (68%) of employees said they would also be more likely to stay longer in their current role if these benefits were offered.
Money and the education surrounding its use deeply impact employees. Across generations, money-related issues were the driving factor in mental health struggles for respondents, with Millennials being hit hardest at 66%.