Being well paid is critical for employee satisfaction as financial worries persist

Being well paid is critical for employee satisfaction as financial worries persist
OneDigital research finds retirement savings may be at risk of depletion.
JUL 22, 2024

Progressive employers are at the forefront of flexible working, mental health programs, and personal development coaching for their teams. But as important as these are, employees’ finance remain paramount.

Compensation has always been a vital component for most workers, but with personal finances impacted heavily by the economic challenges of the 2020s so far, there is little that comes close to matching its dominance.

A new report from OneDigital looks at the factors driving employee satisfaction with ‘being well paid’ cited by around seven in ten poll participants, easily outranking health coverage, benefits that provide financial security, and feeling supported in time taken off due to sickness, vacation, family time, etc.

The importance of good wages is seen across several key groups led by singles (both over and under 45) and single parents, with around three quarters of these groups prioritizing being well paid, compared to just above two thirds of those who are married with children or have a dual income.

The power of the paycheck is clear when considering the finances of respondents with 56% saying they are ill-equipped to handle major unexpected expenses and 48% concerned about potential accidents derailing their financial futures. Among single parents, almost two thirds worry about the latter.

A quarter of respondents are currently considering borrowing from their retirement savings, including 37% of executives. However, 65% are able to save from their monthly paycheck.

One third of the employees who took part were strongly in favor of getting financial advice through their employer.

While health benefits have slipped from the priority position they held during the pandemic, they still rank highly as a value driver for deciding whether to stay or leave an employer for more than 40% of all levels of employee below executive. Brand/reputation outranks health benefits for some employees. Retirement benefits rank below 35%, below flexibility.

“One of the biggest challenges for employers is often overlooked – employees' lives and values are dynamic, affecting their perception of employer support in health, success, and financial wellness,” said Faviana Copeland, VP of Growth Strategy at OneDigital. “Employers recognize the importance of investing in their workforce, but this study shows a gap between values and current support benchmarks. To truly understand employees, employers must amplify their voices to gain a holistic view of their feelings across key life factors and how they align with the employer's rewards philosophy.”

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income