Struggling Workers Look to Employers for Help

With financial wellness deteriorating over the past year, nearly a third of workers report that they are struggling financially and many are now looking to their employer for help.   

In fact, 3 in 10 workers in the U.S. are struggling financially and more than two in five workers are having difficulty meeting basic needs, according to WTW’s 2022 Global Benefits Attitudes Survey, which includes more than 9,600 U.S. employees. 

Among workers earning $100,000 or more, the number of employees living paycheck to paycheck doubled from 18% in 2019 to 36% this year, WTW found. Over half of workers earning less than $50,000 (52%), single parents (53%) and those in poor or fair health (57%) are also living paycheck to paycheck. The survey also found that 4 in 10 employees deferred medical care last year because of time constraints, COVID-19 concerns and cost reasons. 

Many respondents also reported suffering a financial shock. Three in 10 (31%) incurred a significant medical expense, while 23% were placed on furlough or had their hours reduced. Additionally, 15% were victims of a financial fraud or scam, WTW notes.  

WTW notes that these financial shocks might have led to financial moves that could undermine employees’ long-term security, including:

• taking a home equity loan or downsizing their home (23%); 
• taking a 401(k) loan (26%); or 
• being unable to pay their mortgage, rent or utility bills (36%). 

Consequently, employees are now looking to their employer for help. In fact, 36% said employer-provided resources helped improve their financial situation—up from 27% in 2017, the firm notes. Additionally, nearly half of respondents (46%) want financial apps and tools to be a core part of their employee benefit programs. 

“The pandemic continues to affect the financial wellbeing of working Americans,” said Mark Smrecek, senior director, Retirement, WTW. “The link between financial stability and overall wellbeing has become even more precarious as employees fret over inflation, economic instability and workplace challenges. Employers, in turn, can help employees weather the storm and enhance their financial stability by factoring in wellbeing when considering programs.”

Benefit Priorities

The most important benefit employees want their employers to focus on is retirement (44%), followed by flexible work (39%) and health (33%). Among those who want their employers to focus on retirement, 62% are seeking a guaranteed retirement benefit, 58% are looking for more generous retirement benefits and 53% are interested in retiree medical benefits.

An additional benefit option that employees are requesting is help managing their emotional health, with 27% ranking this a top priority. Of those employees, 40% say stress management activities would help them more. 

“Employees are increasingly turning to their employer for more help and support with their benefits. In turn, employers that want to remain competitive are best served by regularly reevaluating their health and retirement benefit packages both in terms of value and flexibility in order to meet the evolving needs of their diverse workforces,” adds Julie Stone, Managing Director of Health and Benefits at WTW.

The 2022 Global Benefits Attitudes Survey was conducted during December 2021 and January 2022. Respondents include 9,658 U.S. employees from large and midsize private employers, representing a broad range of industries.