Workers’ financial stress at critical levels, new poll finds

Financial stress among employees has reached alarming levels, with nearly 9 out of 10 workers feeling the strain, according to a new survey.

The report from financial benefits provider SoFi at Work, titled "The Future of Workplace Financial Well-Being: 2024 Employer & Employee Perspectives," gathered insights from 1,500 human resources leaders and employees and highlights the growing concern over personal finances and the need for employer support.

The survey found nearly half of workers are anxious about various aspects of their finances, including a lack of savings for emergencies (cited by 48 percent of workers) and their retirement savings (45 percent). This comes despite record-high budgets for salary increases in 2023.

"In many ways, this data proves what we instinctively know: The economy is weighing heavily on everyone's minds, and financial stress is affecting employees' day-to-day lives and work performance," Michael Bourgeois, vice president and business lead at SoFi at Work, said in a statement.

The report also points to the significant toll financial troubles can take on people’s well-being. Almost half of the workers surveyed (47 percent) report that it negatively affects their mental health – an 11 percent increase from the previous year's survey. Nearly two-fifths said it hinders their motivation (37 percent) or that it impacts their physical health (36 percent), with nearly 30 percent putting off medical care due to cost concerns.

One solution employees are looking for is support in paying off their student loans. In response, 40 percent of HR leaders said that in 2024, they plan to introduce programs in which the company matches employees' student loan payment with contributions to their 401(k) accounts, as well as pretax emergency savings accounts that can roll over into a retirement plan – benefits that were unlocked by the SECURE 2.0 Act.

Emergency savings funds have also become a top priority for employees, with 47 percent now emphasizing their importance – an increase of 20 percent from 2022. Furthermore, 40 percent are eager to make progress in paying off credit card debt.

In light of these struggles, retirement matching has emerged as one of the most attractive employee benefits, with 1 in 5 employees having borrowed or withdrawn from their retirement savings in the past year.

While 70 percent of HR leaders surveyed claim to offer financial well-being benefits, only 48 percent of the employees polled reported awareness of these programs. A possible contributing factor to this disconnect is the infrequent communication about benefits: 76 percent of HR leaders admit to communicating about benefits at most quarterly or monthly, while only two-thirds of employees recall receiving information about benefits in the last six months.