Dive Brief:
- Two-thirds of workers say the cost of living is rising faster than their income, according to Bank of America’s 13th annual workplace benefits report, The Transforming Workplace, released Sept. 26. That compares to 58% of workers in February 2022.
- Financial wellness among employees fell to 42%, the lowest it's been in the 13 years Bank of America has produced the workplace benefits report. That strain is more strongly felt among women, only 38% of whom characterized themselves as financially well in 2023, a five-year low and down from 55% the year before. Among women, 54% said they worried they wouldn’t be able to meet their financial responsibilities because of inflation, as opposed to 32% of men.
- Despite the effects of inflation and economic uncertainty, 56% of workers say they’re “cautiously optimistic” about their financial future over the next two to three years, per the report, which surveyed 1,300 employees and nearly 800 employers.
Dive Insight:
To remain competitive and retain workers, employers are turning to financial benefits.
"American workers continue to feel stressed about their finances and are concerned about keeping up with the cost of living," Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America, said in a statement about the new workplace benefits report. "Companies who show a sense of urgency for their workforce by offering financial wellness programs and resources which support employees' immediate needs and overall well-being will continue to stand out as employers' of choice."
In HR Dive’s 2023 Identity of HR survey results, published earlier this year, 43% of respondents said they offer retirement contributions or benefits as part of their talent acquisition strategy, compared to 35% the year before. In fact, retirement benefits had the greatest increase among offerings in total rewards packages.
And 90% of respondents in a 2022 survey by Morgan Stanley at Work said they would feel more invested at work if their employer offered financial benefits tailored to their needs.
For example, in July, Walmart announced a partnership with Khan Academy to offer a free financial literacy course for company associates, customers and community members. The virtual course provides articles, videos and exercises focused on personal finance skills and offers lessons on budgeting, saving, consumer credit, financial goals, loans, debt, insurance, investments, scams and taxes.
