Nearly half (49%) of employers said they believe they are supporting their workforce’s financial wellbeing, while only 28% of employees agree, according to new research by Payroll Integrations.
The technology firm surveyed 250 full-time employees and HR leaders between the ages of 18 and 65 for its 2024 State of employee financial wellness report. It found that while 95% of employers believe they have a responsibility to support financial wellbeing, only 36% of employees feel completely financially stable.
While many employers (41%) plan to spend more on financial education and planning offerings next year than they are now, only 18% of employees are interested in what they are investing in. Half (54%) would prefer employers invest more in health insurance, while 43% would like more on retirement plans.
Following retirement (73%) and healthcare (72%), employees vary in what benefits they believe to be most key to financial wellbeing. Two-fifths (44%) of Boomers aged 59 and above said pensions are most important, 46% of Gen X and Y workers aged 43-58 stated additional compensation, 31% of Millennials aged 27-42 answered health savings accounts, and 38% of Gen Z employees aged 18-26 said lifestyle compensation.
Two-thirds (65%) of Millennials feel completely in control of their finances, compared to 54% of Gen X and Y, 38% of Boomers and 33% of Gen Z. Millennials (41%) also feel the most financially stable, as opposed to Boomers (38%), Gen X and Y (36%) and Gen Z (27%).
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More than two-thirds would not accept a new job if retirement plans (67%) and health insurance (65%) were not offered as benefits. Employers consider retirement plans (80%) and health insurance (70%) as the most critical benefits to attract and retain employees.
Doug Sabella, chief executive officer of Payroll Integrations, said: “Employers need to reassess how they’re providing financial wellness support to their employees. It’s clear they want to support employees’ financial wellbeing, but they’re not aligned on what matters most to help them do so. It’s up to employers to determine where to best put their resources to better support employees on their financial wellness journey.”