Financial wellness has become an increasingly important issue for employees in today's fast-paced and often stressful work environment. With the rise of student loan debt, the cost of living, and other financial pressures, many workers, especially millennials and Gen-Z, struggle to keep up with their finances. The impact of financial stress on employees can be significant, affecting their health, productivity, and job satisfaction.
Employers have a unique opportunity to support the financial health of their workers by offering financial wellness benefits. These benefits can help employees manage their finances, reduce stress, and improve their overall financial stability. In this article, we will explore the importance of financial wellness for millennials and Gen-Z, the benefits of financial wellness programs for employers, and how employers can implement these programs in their workplace.
The purpose of this article is to guide employers on the importance of financial wellness for their millennial and Gen-Z workers. By understanding the financial challenges faced by younger generations and the impact of financial stress in the workplace, employers can take steps to support their employees and create a stronger, more resilient workforce.
The Financial Health of Millennial and Gen-Z Workers
Millennials and Gen-Z are facing financial challenges that are unique to their generation. Deloitte's 2022 survey of Generation Z and Millennials found that these groups are greatly concerned about the current state of the world, including the cost of living, climate change, wealth inequality, geopolitical conflicts, and the ongoing COVID-19 pandemic. Despite their motivation to drive positive societal change, they face daily difficulties such as financial stress, an imbalance between work and life, and high levels of stress.
According to the same survey, just a small portion of Generation Z (25%) and Millennials (21%) reported being able to pay their monthly living expenses comfortably. A significant number of these groups live from paycheck to paycheck, which affects their ability to save. As a result, around 30% of respondents stated that they are not confident they will be able to retire comfortably.
The survey found that stress levels remain elevated among respondents, particularly among Generation Z. Almost half of Generation Z (46%) and nearly 40% of Millennials reported feeling stressed all or most of the time. Additionally, close to half of the respondents reported feeling burnout due to the pressure of their workloads, with a similar number reporting that many of their colleagues have left their organizations due to burnout. This indicates a potential problem with employee retention. About 20% of Generation Z and Millennials do not believe their employers are taking the issue of burnout seriously or taking steps to address it. (Deloitte, 2022)
The impact of financial stress on employees can be significant, affecting their health, productivity, and job satisfaction. Financial stress has been linked to a range of physical and mental health problems, including depression, anxiety, and sleep disturbances. In addition, financial stress can also impact an employee's work performance, causing absenteeism and decreased productivity.
As per the report by TalentLMS, the discussions surrounding a recession have caused 79% of employees to feel worried about their financial well-being. Speaking about the younger generations, money-related problems have caused mental health challenges for 66% of Millennials and 59% of Gen Zers. (Casic et al., 2022)
To support the financial health of their workers, employers must be aware of the financial challenges faced by millennials and Gen-Z and the impact of financial stress in the workplace. By understanding these challenges, employers can take steps to support their employees and help them achieve financial stability and success.
The Benefits of Financial Wellness for Millennial and Gen-Z Workers
Financial wellness benefits are designed to support employees in managing their finances and reducing financial stress. By offering these benefits, employers can help their workers achieve financial stability and success, leading to improved health, productivity, and job satisfaction.
Some of the key benefits of financial wellness for millennials and Gen-Z workers include:
- Reduced financial stress: By providing access to financial education and resources, employees can learn to manage their finances and reduce financial stress.
- Improved financial stability: Through financial wellness benefits, employees can gain the knowledge and resources they need to make informed financial decisions, build an emergency fund, and pay off debt, leading to greater financial stability.
- Increased productivity: By reducing financial stress, employees can focus on their work, leading to increased productivity and job satisfaction.
- Enhanced recruitment and retention: Offering financial wellness benefits can help attract and retain top talent, especially younger generations, who place a high value on work-life balance and financial security.
- Improved health and well-being: By reducing financial stress, employees can experience improved physical and mental health, leading to greater overall well-being.
Financial Wellness Programs for Employees
Financial wellness programs are designed to support employees in managing their finances and reducing financial stress. These programs can take many forms, including financial education and planning, on-demand pay, debt management, and retirement planning.
Financial wellness programs can be customized to meet the specific needs of an organization and its employees. Some popular financial wellness programs for employers include:
- Financial education and planning: Providing employees with access to financial education and resources, including financial planning services, can help employees make informed financial decisions and reduce financial stress.
- Debt management: Providing employees with resources and tools to manage debt, such as debt consolidation or student loan refinancing, can help employees pay off debt and achieve financial stability.
- Retirement planning: Offering retirement planning services and resources, such as a 401(k) plan or a pension plan, can help employees prepare for their financial future and achieve financial stability.
- On-demand pay: Providing employees with access to on-demand pay, such as through OrbisPay, can help employees manage their finances more effectively and reduce financial stress by giving them control over their earnings.
By offering these financial wellness programs, employers can help their workers achieve financial stability and success, leading to improved health, productivity, and job satisfaction.
Financial Wellness: A Win-Win for Employers and Employees
In today's fast-paced and ever-changing world, financial wellness is a critical consideration for employers. With millennials and Gen-Z representing a growing percentage of the workforce, it's more important than ever for employers to support the financial health of their employees.
Offering financial wellness programs, such as financial education and planning, debt management, retirement planning, and on-demand pay, can help employees manage their finances, reduce financial stress, and achieve financial stability. This, in turn, can lead to improved health, productivity, and job satisfaction for employees.
Investing in the financial wellness of employees is not only the right thing to do, but it can also have a positive impact on a company's bottom line. By attracting and retaining top talent, reducing absenteeism and turnover, and increasing productivity, financial wellness programs can help employers achieve long-term success.
So, to all employers, take a proactive approach to financial wellness and invest in the financial health of your employees. Whether it's through financial education, debt management services, or on-demand pay, supporting the financial wellness of your workers will pay off in the long run.
Together, we can create a financial wellness revolution and support the health and well-being of employees for generations to come.
Casic, A., Pavlou, C., Alban, K., & Gostomelsky, A. (2022). Financial Wellness Programs in the Workplace: 2022 Research. TalentLMS. Retrieved February 15, 2023, from https://www.talentlms.com/research/employee-financial-wellness-research
Deloitte. (2022, June 17). Deloitte's Gen Z and Millennial Survey Reveals Two Generations Striving for Balance and Advocating for Change. Deloitte. Retrieved February 13, 2023, from https://www2.deloitte.com/cn/en/pages/about-deloitte/articles/deloittes-gen-z-and-millennial-survey-reveals-two-generations-striving-for-balance-and-advocating-for-change.html