Financial Wellness Check-up: Are Your Employees Feeling Fiscally Fit?
Do today's employees believe they're on track for a secure future and achieving their financial goals? When it comes to employee financial well-being, companies that offer financial resources and a supportive environment can best create a workplace where financial wellness is a priority.
Financial wellness is not just about having a steady paycheck. For today's workers, it's also about their ability to save for retirement, manage debt and maintain financial security with confidence.
But many are feeling the pressure of meeting everyday expenses. They're uneasy about their financial situation — both immediate and long-term, including retirement. And current economic realities certainly don't help. Bottom line: The majority don't feel supported in achieving their financial goals.
It's essential to understand how your workers feel about their finances and retirement savings — so you can show them that you value their financial wellness.
A pulse on employee financial health
Employees don't always leave their personal money worries at home. Financial stress in the workplace can have a negative impact on productivity, focus, motivation and overall job satisfaction. This can lead to disengagement, expensive errors, excessive absenteeism and high turnover — costing you time and money in recruiting and training new employees.
According to a recent ADP study, 39% of employees feel overwhelmed and fearful about their personal financial situation. Their top financial concerns include:
- Living expenses (42%)
- Retirement savings (35%)
- Healthcare costs (22%)
Forty percent believe current living expenses impact their ability to save in general. Despite financial concerns, 75% continue to put money away for retirement through an employer-sponsored plan — although they may be falling short of meeting their savings goals. In fact, 60% have under $100,000 in retirement savings. Thirty percent contribute less than six percent of their paycheck, and eight percent contribute three percent or less.
Easily accessible retirement tools and resources could certainly help. Yet only half of workers are aware of financial tools available through their employer. As a result, they find certain aspects of retirement planning more challenging, such as:
- Calculating retirement savings goals (34%)
- Outliving savings (16%)
- Projecting retirement expenses (15%)
Demonstrate your commitment to their financial success.
While you can't avoid all of their financial stressors and challenges, consider the steps you can take to foster a culture of financial wellness. From offering financial education workshops and debt management resources to providing a comprehensive retirement plan, tailor your financial wellness tools to address their most critical needs.
When employees feel more in control of their finances and have the savings tools and support to make informed decisions, they're more likely to be focused and motivated at work — and more secure in their retirement future. Everyone benefits.
For more information, read the Employee Perspectives on Financial Wellness report or infographic.
To learn more about employee financial wellness tools offered with ADP retirement plans, visit us at adp.com/401k.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor. M-505315-2024-02-27
