New SoFi at Work Survey Finds More Employees than Ever are Stressed About Finances, Reveals Simple Ways Employers Can Help
February 06 2024 - 8:00AM
Business Wire
1,500 HR Leaders & Employees Offer Insight
into the Advantages of Financial Well-Being Benefits on Employees’
Overall Well-Being & Business Performance in 2024
More employees than ever — nearly 9 out of 10 — are feeling
stressed about their finances, with almost half saying they’re just
getting by. Despite budgets for salary increases reaching a 22-year
high in 2023, 48% of workers are worried they don’t have enough
money saved for an emergency and 45% are stressed about not having
enough saved for retirement. Fortunately, employers and their HR
leaders are in a strong position to help improve financial
well-being through innovative benefits that can significantly
reduce employees’ financial stress – and the resulting impacts on
their mental health – while also adding business value.
That’s according to new research published today by SoFi at
Work, a leading provider of holistic financial well-being and
education benefits to more than 1,000 organizations. The report,
The Future of Workplace Financial Well-Being: 2024 Employer &
Employee Perspectives, is SoFi at Work’s second annual report
outlining employees’ financial goals and what employers can do to
support them on the path to financial well-being.
“In many ways, this data proves what we instinctively know: The
economy is weighing heavily on everyone’s minds, and financial
stress is affecting employees’ day-to-day lives and work
performance,” said Michael Bourgeois, Vice President and Business
Lead at SoFi at Work. “But it also reveals there are a number of
simple and affordable steps companies can take to dramatically
reduce the toll financial stress takes on employees and the
organization as a whole.”
Financial stress impacts employees’ health &
performance
Dealing with financial stress like inflation and the rising cost
of goods has a direct impact on employees’ overall well-being:
- 47% say it negatively impacts their mental health, an 11%
increase from SoFi at Work’s previous report
- 37% say it hinders their motivation
- 36% say it impacts their physical health and nearly 30% have
delayed medical care because of the cost.
Financial well-being benefits boost retention
Companies that offer financial well-being benefits can
substantially reduce the impact of financial stress for employees
by as much as 10-13%, and 3 out of 4 employees say these benefits
make them more likely to stay with their employer.
Employees want support paying off student loan debt
The SECURE 2.0 Act gives employers an opportunity to help
employees navigate immediate financial goals and long-term security
through student loan payment 401(k) matching and pre-tax emergency
savings accounts that roll over to a retirement plan. 40% of HR
leaders plan to start offering these benefits in 2024, which will
be a major differentiator in attracting and retaining critical
talent as 9 out of 10 employees:
- Want programs that help them reach their financial goals while
paying off student debt.
- Would be more likely to stay with their employer long-term if
they matched student loan payments with retirement
contributions.
Employees are struggling with liquidity
Emergency savings funds are now a top priority for 47% of
employees, a notable 20% increase from 2022, and 40% want to make
progress paying off credit card debt. With 1 in 5 employees having
borrowed or withdrawn from retirement savings last year, retirement
matching is now among the most enticing employee benefits.
Closing communication gaps is essential
70% of HR leaders say their company offers financial well-being
benefits but only 48% of employees say they do, pointing to a need
for more employee knowledge about programs already available. One
reason could be communication infrequency: 76% of HR leaders claim
to communicate about benefits at least quarterly or monthly, but
only 2/3 of employees say they've received information about
benefits in the last six months.
“Making employees feel supported during these challenging times
doesn’t have to cost a lot of money, and in fact, it may cost your
company less in the long run,” Bourgeois said. “It’s important that
companies keep pace with employees’ changing needs by offering
financial well-being benefits that meet them where they are today
and help them feel more secure down the road.”
SoFi at Work’s The Future of Workplace Financial Well-Being:
2024 Employer & Employee Perspectives was conducted by CITE
Research, which polled 1,500 HR leaders and employees ages 18-70
between September 28 and October 13, 2023.
To read the full report, visit
https://www2.sofiatwork.com/2024FutureofWorkplaceFinancialWellbeing.
About SoFi
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for
digital financial services on a mission to help people achieve
financial independence to realize their ambitions. The company’s
full suite of financial products and services helps its more than
7.5 million SoFi members borrow, save, spend, invest, and protect
their money better by giving them fast access to the tools they
need to get their money right, all in one app. SoFi also equips
members with the resources they need to get ahead – like career
advisors, Credentialed Financial Planners (CFP®), exclusive
experiences and events, and a thriving community – on their path to
financial independence.
SoFi innovates across three business segments: Lending,
Financial Services – which includes SoFi Checking and Savings, SoFi
Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and
Technology Platform, which offers the only end-to-end vertically
integrated financial technology stack. SoFi Bank, N.A., an
affiliate of SoFi, is a nationally chartered bank, regulated by the
OCC and FDIC and SoFi is a bank holding company regulated by the
Federal Reserve. The company is also the naming rights partner of
SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles
Rams. For more information, visit SoFi.com or download our iOS and
Android apps.
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Meghan Brown pr@sofi.com
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