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

Private credit becoming 'big piece' of annuities, T. Rowe exec says
Private credit becoming 'big piece' of annuities, T. Rowe exec says

Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.

Zocks debuts Claude plugin with seven skills for financial advisors
Zocks debuts Claude plugin with seven skills for financial advisors

The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.

Stifel settles massive $30 million complaint involving star broker’s sale of structured products
Stifel settles massive $30 million complaint involving star broker’s sale of structured products

Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.

SEC floats CFP route to accredited investor status, fund rules refresh amid private market push
SEC floats CFP route to accredited investor status, fund rules refresh amid private market push

Among other updates, the proposals would let advisors to regulated funds earn performance fees and allow interval funds to offer monthly repurchases.

The Year Is 2046 and I’m a Financial Advisor 
The Year Is 2046 and I’m a Financial Advisor 

What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy. 

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

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