What’s going on:
A survey by Financial Finesse shows that American workers are experiencing high levels of financial stress amid an uncertain economic climate. The survey found that 13% of respondents were in a “crisis mode” or struggling to meet basic needs and pay bills, and 64% were trying to handle debt and save for emergencies, according to Benefits Pro.
According to the report there has been an increase in workers expressing high or overwhelming financial stress, from 20% in 2021 to 27% in 2022. Concerns over the U.S. economy and its potential effects on individuals’ financial future also increased.
Why it matters:
These findings reveal that a large part of the American workforce is facing financial hardship, and this impacts mental and physical health — as well as their productivity at work. The situation is especially troubling among female, Black, and Hispanic employees, in addition to single parents who make up a significant percentage of those in the crisis category.
How it’ll impact the future:
The survey suggests that a personalized approach to financial wellness is very important for organizations and businesses to address. Employers are now faced with the task of meeting their employees’ unique needs through targeted education, benefits, and support systems. They also may be inclined to collaborate with Employee Resource Groups (ERGs) to understand the most pressing financial concerns of their team members and tailor financial wellness offerings accordingly. Financial role models within the workplace might also be an effective approach for fostering financial responsibility and resilience among employees.