1,600 HR leaders and employees surveyed reveal financial wellness benefits as an untapped driver for improved performance and employee experience
SAN FRANCISCO, March 30, 2022–(COMMERCIAL WIRE)–Three in four U.S. workers (75%) face at least one source of major financial stress1 and more than half (51%) felt more stressed about their finances in 2021 than ever before,two according to new research posted today by Sophie at work – a holistic leader, financial wellness and educational assistance benefits Partner of over 1,000 organizations – and Intelligence in the workplace, a human resources research and consulting firm. As a result of this increased stress, employees are changing their personal and professional lives, with some taking on a second part-time job (25%), while others are opting for higher credit card debt (25%) or Take advantage of retirement. savings (19%)3 – and employees spend a weekly average of 9.2 hours4 on your personal finances while at work.
But there is widespread optimism in the workforce that 2022 will be a year of positive change when it comes to personal finance progress, with more than 9/10 (91%) of employees confirming that they have committed to improving your financial well-being by setting financial goals for 2022.5 Perhaps even more important is the budget increase that 75% of employers plan to allocate to financial wellness benefit programs in the next two years.6 to ensure that employees have the tools they need to achieve those goals.
SoFi conducted the study, which was based on 1,600 responses from 800 HR business leaders and 800 full-time employed workers from all industries, locations, and job types, to understand what role financial well-being plays (or could play) in employee health. work life and to help employers assess how certain benefits, such as employer contributions for student loan debt, financial education tools, access to emergency savings accounts, and more, might affect the business and employee experience. employees in their organizations.
Findings revealed that improving employees’ financial well-being could have a ripple effect by driving higher worker productivity (86%), desire to stay with their employer (86%), job satisfaction, and job engagement (84%), the ability to focus (84%), as well as better mental (84%) and physical (80%) health.7
The report also revealed less obvious, but equally impactful, areas where employers have the opportunity to provide more holistic financial wellness support for employees, either through education aid programsor more cutting-edge integrations that employees across industries are expressing interest in, such as the option to receive performance rewards in the form of NFTs (42%) or be paid in cryptocurrency (36%).
Workers are stressed about finances: This stress has worsened their sleep (38%), mental health (36%), physical health (27%), ability to focus at work (23%), and productivity (18%).
And employers are also paying the price: Employees spend more than 9.2 hours a week dealing with financial problems at work and more than 14 hours in total.
Workers have felt the need to take drastic measures: Some resorted to taking a second part-time job (25%), taking on more credit card debt (25%), withdrawing money from their retirement savings (19%), or getting a loan from family or friends (19%) ).
Employee expectations of employer support still do not reflect reality: 84% of employees believe that their company should be responsible for their financial well-being, but only 55% feel that their company is concerned about their financial well-being.
Increased interest in cryptocurrencies and NFTs to impact salary and performance rewards: While benefits like retirement compensation and financial planning tools remain important, 36% of workers want the ability to receive some or all of their paycheck in cryptocurrency, and 42% would would like to receive NFTs as a reward for performance.
“Business leaders today are facing a daunting set of growing concerns around some of the biggest business challenges in recent history, including talent shortages, growing concerns about the impact of rising inflation on compensation ( 67%),8 and others,” said Jennifer Nuckles, EVP and Group Business Unit Leader, SoFi. “With this, it’s important to realize there are other levers employers can, and should, use to add value. One size does not fit all when it comes to financial wellness and financial education. The research we are publishing today provides employers with actionable insights and forward-looking insights into employee expectations to help provide a roadmap for the future of financial wellness in the workplace.”
“Offering financial wellness benefits isn’t just the right thing to do, it’s also a critical way to drive employee engagement and productivity,” said Dan Schawbel, managing partner at Workplace Intelligence. “But people’s preferences are evolving rapidly, and the companies that can adapt quickly are the ones that will emerge victorious in the war for talent.”
Research findings are based on a survey conducted by Workplace Intelligence and SoFi at Work in the US between December 21-29, 2021. For this survey, 1,600 HR leaders and employees were asked questions about financial well-being, financial education and financial benefits. . The study targeted full-time employees between the ages of 18 and 74. Respondents were invited to participate via email and provided a small monetary incentive for doing so.
SoFi (NASDAQ: SOFI) is an all-in-one digital personal finance company that helps people achieve the financial independence to realize their ambitions. Our products to borrow, save, spend, invest and protect give our three and a half million members quick access to tools to manage their money well. SoFi membership comes with the key essentials to get ahead, including access to professional advisors and certified financial planners, as well as connection to a thriving community of ambitious people. SoFi owns and operates Galileo Financial Technologiesa platform that brings investment and lending products to the financial services ecosystem and its partners, and tecnisys, a leading cloud-native digital multi-product core banking platform, as stand-alone companies. SoFi is a banking holding company and operates its banking subsidiary as SoFi Bank, National Association. SoFi is the naming rights partner of so fi stadium, home of the Los Angeles Chargers and Los Angeles Rams. For more information visit sofi.com or download our iOS and Android Applications
ABOUT INTELLIGENCE IN THE WORKPLACE
Workplace Intelligence, LLC is a human resources research and consulting firm that helps leaders adapt to trends, drive performance and prepare for the future. Our mission is to create smarter workplaces using data-driven insights. For more information access our website and subscribe to our LinkedIn Newsletter.
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