employees continue to fighting mental healthand their tenuous financial situation only adds to the stress.
According to recent information mental health index According to Telus Health (formerly LifeWorks), 40% of employees feel overwhelmed with debt and financial responsibilities, and 28% are digging into savings to cover their daily expenses.
For many, these financial burdens are treated in silence. According to the index, 71% of employees suffering from financial stress did not seek financial help or assistance, and 17% said embarrassment was the main reason they remained silent. . This group has worse mental health than those who have used coaching and other debt relief programs.
read more: From student loans to retirement, financial wellness benefits should support four generations of employees
Paula Allen, Global Leader of Business and Client Insights at Telus Health, said: release. “Resources such as employee assistance and financial well-being programs have never been more important, and many are under-communicated. Now is the time to change that.”
If you can’t manage your debt, lifelong financial challengesAccording to the Employee Benefit Research Institute, more than half of employees say debt is a “big” problem, and 51% of employees believe it will negatively affect their ability to save for retirement. A study by Betterment at Work found that by 2022, 28% of employees would have had to use a retirement account or stop saving to cover short-term expenses.
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To combat this, employers should consider their Financial Wellness Benefits, and many have listed this as their top priority for 2023. According to Bank of America, he 97% of employers feel responsible for the financial health of their employees and see improved engagement and well-being when addressing these needs.
Yet many employees still find it difficult to find support and reassurance. According to Telus Health, 57% of indebted employees use their own benefits to help manage their debt, despite an increase in financial investment by employers in his wellness services. I have not. Again, embarrassment was the top reason why they didn’t seek outside support.
Despite low engagement, employees find benefits such as automatic savings and investment plans to be the most helpful in saving for retirement, even with debt, with 41% alleviating financial concerns access to emergency funds is important for this purpose.
read more: Bank of America Reveals Biggest Retirement Concern Amid Inflation
Employers must be prepared to adapt and adjust their benefits strategies as employees continue to be impacted by evolving economic challenges.
“Workers are looking for support in ways they may not have in the past, and it’s important that employers recognize this shift,” said Juggy Sihota, chief growth officer at Telus Health. Employers can adapt by making financial savings and investment plans more readily available and by providing consulting services to help educate and empower employees.”
