Financial struggles are stressing employees
By
Is this statement true or false: One-quarter of full-time workers say they’re struggling financially.
It’s true, according to Ramsey Solutions’ SmartDollar Employee Benefits Study, conducted between Jan. 10 – 25, 2022.
The study surveyed 3,000 full-time U.S. workers, who were employed by companies with 25 to 3,000 employees and who received benefits through them.
It looked at everything from employee benefits, perceptions of and engagement with financial wellness benefits, employee financial and mental health, and other trends impacting employees.
Personal finances major stressor
And what it found first and foremost: Personal finances are a major stressor for employees. So much so that 56% said they feel they can’t get ahead with their personal finances. And by now you know what this translates to: Stress!
Like we’ve told you before, employees who are stressed due to finances aren’t productive.
And when we say stressed, it’s not like they’ve been a little stressed. Fifty-five percent say they worry about their personal finances every day!
Forty-five percent said they’ve been distracted at work from financial problems in the last year. Personal finances even took precedence over their career, relationships and family as the top issue creating “a significant amount of stress.”
You’ll want to keep an eye on your younger workers because it would appear they deal with money stress daily. When it comes to worrying about their personal finances daily 72% of Gen Z employees do it as do 65% of millennials. It drops to 54% for Gen X employees and 28% of boomers.
So, what can you do to make sure your employees aren’t stressed financially at work?
What employees want
According to 73% of employees in the study, they want their employers to offer more resources to help them manage their financial issues. But the sad fact is only 23% of employees in the study had employer sponsored financial wellness benefits.
Size seems to affect the type of financial wellness benefits offered:
- 12% of employees at small companies (25-199 employees) have financial planning compared to 15% of those at medium companies (200-999 employees) and 22% of those working at large companies (1,000-2,999 employees), and
- 7% of those at small employers have financial education benefits, compared to 14% at medium-sized employers and 19% of large employers.
Financial wellness benefits are highly desired, especially nowadays, by employees. In fact, it comes in second place only after flexible and remote work options!
Specifically, employees want:
- access to perks programs for savings on purchases (14%)
- student loan repayment assistance (13%)
- financial hardship programs (12%)
- financial planning resources (12%), and
- financial education resources (12%).
Further Reading
IRS Raises 2027 Retirement Contribution Limits for 401(k)
The IRS has announced that the 2027 contribution limit for 401(k), 403(b) and 457(b) retirement plans will increase to $25,500, up from $24,500 in 2026. Higher Catch-Up Limits Boost Retirement Savings Catch-up limits are going up, too: The higher catch-up replaces the standard one, so employees can’t stack the two. And employees can make catch-up […]
Paid Parental Leave: New Requirements for Allegheny County Employers
On Oct. 22, 2026, Allegheny County, Pa., enacted what’s believed to be the nation’s first countywide paid parental leave mandate. Employers must comply by October 2027. Employers doing business in the county with 15 or more employees anywhere must fund 12 weeks at base pay, capped at $4,200 weekly, for birth, adoption, child placement or […]
Washington Paid Leave Premium Increases Jan. 1
On Jan. 1, 2027, Washington’s Paid Family & Medical Leave premium increases to 1.2%, from 1.13%. Employers will pay 29.3% of the paid leave premium; the employee share is 70.7%. Employers may cover some or all of employees’ share. Generally, employers with fewer than 50 employees don’t need to pay the employer share unless they […]
Year-End Fringe Benefits: Check Payroll’s Accounting Cutoff
With year-end approaching, payroll teams should review whether the IRS’s optional special accounting rule makes sense for certain taxable noncash fringe benefits. The rule lets employers treat benefits provided during November and December (or a shorter period within those months) as paid in the following year. For example, personal use of a company vehicle in […]
Handy Open Enrollment Jargon Cheat Sheet for You
Open enrollment can be a hectic time of year for HR pros and the employees you help. Add open enrollment jargon to the mix, and you can ensure confusion will flourish. Clarifying Open Enrollment Jargon So we’re equipping our readers — and your employees — with a handy jargon cheat sheet to get through benefits […]
Massachusetts Changes PFML Contribution Allocation for 2027
Massachusetts recently updated its paid family and medical leave contribution guidance after passing Chapter 101 of the Acts of 2026. The changes take effect Jan. 1, 2027. The law shifts employer contributions from medical leave to family leave to mitigate the impact of IRS guidance on PFML benefit taxation. Employers with 25 or more covered […]