What Tops Financial Stress for Employees?

What Tops Financial Stress for Employees?

What tops financial stress for employees? Retirement and student loan debt, among other financial issues, worry employees enough to inhibit productivity, but financial wellness programs can help them take control and regain focus at work.

John Hancock released their annual Financial Stress Survey this week and the findings are worrisome. An overwhelming majority (69%) of American employees experience financial stress. Over 70 percent of them worry about personal finances at work (costing employers up to $2,000 annually per employee in lost productivity).

High levels of financial stress manifest through physical symptoms like anxiety, lack of sleep and a feeling of being overwhelmed. Nearly 90 percent of workers feel there is a social stigma associated with not being financially well, which could motivate them to conceal symptoms of financial stress.

Employers might not notice when employees are highly stressed about finances if they hide it well, and finances aren’t a topic employees are comfortable bringing up with their supervisors. Surveys like these give insight into how employers can better help employees by targeting the issues that affect them most through effective financial wellness programs and benefits.

What Tops Financial Stress for Employees?

Close to 80 percent of employed Americans are concerned about retirement savings and student loan debt. More than 60 percent of workers are concerned with keeping up with basic expenses, like monthly rent payments. Others are stressed about their overall financial situation and a lack of emergency savings.

Most Americans think getting financial advice at work would reduce their stress and more than 60 percent believe it would help them start saving more for retirement. Employees think employers can help them most with financial issues like retirement income preparation and Social Security and Medicare claiming. Roughly 30 percent think employers can help them with debt counseling or buying a house.

Employers recognize today’s American employees experience high levels of financial stress and are looking for ways to improve health and wellness offerings in this vital area. New solutions, like the creation of HRAs, and the rise of student loan benefits help employees deal with specific financial issues and have the potential to be incredibly successful in their respective areas. Their specificity is also a drawback. Employees in poor health or without student debt won’t benefit from those solutions, but they’ve surely got their own unique financial stressors.

Expansive financial wellness programs that give employees the tools and support to improve the issues affecting their overall financial wellness, versus those that tackle singular financial issues, are likely to make the most difference. Employees are able to reduce their financial stress by using and applying knowledge from their financial wellness program and eventually, will start to reach their financial goals.

More on Financial Stress and Financial Wellness Programs

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

 

What’s Wrong With Wellness Program Incentives?

What’s Wrong With Wellness Program Incentives?

What’s wrong with wellness program incentives? ROI isn’t proven, employees feel forced into participation, and worse, wellness programs can increase weight-based discrimination and stigma in the workplace, which results in increased obesity and decreased well-being.

Workplace wellness programs have long been criticized as ineffective and lacking ROI, but financial incentives for wellness program participation are even more controversial.

Depending on what the financial incentive is, failing to participate could cost an employee hundreds or thousands of dollars. It then becomes a question of whether participation is truly voluntary, or if employees are being coerced.

The Equal Employment Opportunity Commission (EEOC) set a limit for what employers could offer employees to join in on wellness programs in 2016 (30 percent of an employee’s health insurance costs). Earlier this year, a judge vacated that arbitrary limit and the EEOC said it would not produce a new number until 2021.

That means there aren’t specific guidelines for employers putting together next year’s wellness benefits to follow. It’s worth considering whether incentivizing program participation is a good idea or just a waste of money.

New research from Frontiers in Psychology found wellness programs can actually lead to increased obesity and decreased well-being. Programs that put the responsibility on employees made them believe their weight is blameworthy. It led to increased weight-based discrimination and stigma in the workplace, a consequence surely no employer intended.

Wellness programs framed from an organizational standpoint were able to avoid increased stigma. What does that look like? An employer providing healthy snacks, standing desks, or offering reimbursements for gym memberships gives employees opportunities to improve their health without shaming them, versus ‘biggest loser’ challenges that are sure to make employees more self-conscious and could fuel disordered eating habits.

Employers look to wellness programs to reduce astronomical healthcare costs and take back some of the $530 billion that poor employee health costs in lost productivity from nearly 1.4 billion days of missed work each year. However, most employers now realize offering wellness programs isn’t enough. Employee engagement with wellness benefits is low, which is why providing a financial incentive for participation seems like a great idea (and in some cases, it still can be).

Nearly 20 percent of employees are either unaware of or don’t understand how to use the wellness benefits their employer offers. Clear benefits communication is vital to program success, and a process to improve before offering financial incentives for participation. Employees need to know what’s being offered, and more importantly how it works and who to contact if they have questions.

Unless conflicting research emerges proving significant ROI for employers who provide wellness benefits initiatives, employers are better off spending those funds elsewhere. A focus on improving benefits communication and creating a culture that encourages healthy habits has the potential to boost job satisfaction, productivity and reduce employer healthcare costs. Organizational and procedural changes might require some effort, but they’re low-cost solutions to the issue of benefits engagement.

What Are the Consequences of Too Much Tech

What Are the Consequences of Too Much Tech

What are the consequences of too much tech? Technology streamlines processes but often removes human interaction to do so and recent research points to an epidemic of loneliness in the workplace as a result.

Employees spend half the workday on email and as a consequence, 40 percent of them often feel lonely, according to a global study by Future Workplace and Virgin Pulse.

What Are the Consequences of Too Much Tech?

Technology keeps us highly connected, but not necessarily to people. Fixation on technology reduces productivity and collaboration, increases the risk of burnout, and worse, the loneliness it fosters can have a detrimental impact on overall health.

MarketWatch quotes Dr. Vivek Murthy, the former surgeon general of the U.S., “Loneliness and weak social connections are associated with a reduction in lifespan similar to that caused by smoking 15 cigarettes a day and even greater than that associated with obesity.”

The effect of loneliness on an individual’s health is startling enough, but increased absenteeism and higher health costs are just two of the many ways loneliness affects the workplace. Sigal Barsade, professor of management at the Wharton School of Business, University of Pennsylvania, found in his research that greater employee loneliness led to poorer task, team role and relational performance.

How Limiting Tech Interaction In-Office Can Help

Limiting tech interaction in-office has the potential to increase job satisfaction and employee retention. Encouraging employees to build relationships with one another can boost their loyalty to an organization. A study by John P. Meyer and Natalie J. Allen, professors of psychology at Western University in London, Ontario found how an employee perceives and connects with a company is largely influenced by their interpersonal relationships at the organization.

Two global studies, conducted by Future Workplace with Randstad, found that young professionals would choose a corporate office over remote work, and in-person meetings over virtual ones. Employee interaction is going to become an attractive recruitment perk as isolating remote work grows.

Reining in the use of tech at work can lead to less stress, more engagement, higher job satisfaction and better retention. At minimum, it helps combat the loneliness epidemic that’s sure to get worse before it gets better as technology continues to streamline processes, which in some cases means removing human interaction altogether.

More On Technology and Office Culture

Hiring Trends to Watch in 2020

Why You Need to Train Employees for Future Tech

Top 10 Employee Benefits for 2020

2 Simple Strategies to Improve Office Culture

Is Rehiring a Former Employee a Good Idea?

How to Improve Gender Diversity in the Workplace

How to Make Traditional Work Better for Freelancers

Office Dress Code Policies in Today’s Workplace

Top 10 Workplace Etiquette Rules for Communication

Building Office Culture with Diversity and Inclusion

How to Improve Gender Diversity in the Workplace

How to Improve Gender Diversity in the Workplace

How can employers improve gender diversity in the workplace? It starts with tracking representation and setting goals for diversity when hiring and promoting employees.

“Progress for women isn’t just slow it’s stalled,” reads the alarming introduction to LeanIn’s latest report, Women in the Workplace 2018. In the three years they’ve been studying the issue, corporate America has made almost no progress in how women fare.

Hiring is one of biggest drivers of gender representation in the workplace and automated recruitment systems aren’t helping: Even machine learning algorithms are gender biased because what they search for in potential hires is based on historic data, which in most cases favors male candidates.

Women are less likely to be hired at the manager level and they’re far less likely to be promoted into management positions. LeanIn’s research shows for every 100 men promoted to manager, there are less than 80 women promoted. As a result, more than 60 percent of men hold managerial positions compared to less than 40 percent of women.

The study offers “performance bias” as a potential explanation to early gaps in hiring and promoting women. Research on “performance bias” found men are often hired and promoted based on their potential, while women are often hired and promoted based on their track record. “One thing I’ve become used to is having to prove myself constantly, over and over. It’s tiring, and unfortunately, it hasn’t changed a whole lot as I’ve become more senior,” says a Latina woman who is a senior executive with 4 years at the company.

Although it’s commonly thought that women are underrepresented in management because they leave to focus on family, LeanIn found that women and men leave their jobs in similar numbers. Most men and women plan to stay in the workforce when they leave their company. Less than 5 percent of women plan to leave the workforce to focus on family.

If companies start hiring and promoting women and men to manager at equal rates, the report estimates that the U.S. will get close to parity in management over the next 10 years. If employers continue hiring and promoting women at current rates, the number of women in management will increase by just one percentage point over the same ten years.

The underrepresentation of women in uppermanagement is so common it’s normalized. A director recalled a time when she pressed a button to the executive office and someone in the elevator pointed out what floor the interns were on, assuming she was mistaken. A lawyer remembered walking into negotiations she was leading and an older man from the company asked her to take meeting notes.

Most companies say they’re highly committed to gender and racial diversity, but that runs counter to LeanIn’s research on the issue. Less than half of companies track representation and set targets to reach gender and racial diversity. Achieving gender and racial diversity requires more than lip service, it requires planning and careful consideration at each level.

Leaders at all levels need to, well, take the lead. In order to do that they need to understand the problem, receive training to help solve it and be held accountable for making consistent progress towards gender and racial diversity. It’s also up to leadership to foster an inclusive and respectful culture by developing guidelines supported by a clear reporting process and swift consequences for violations.  

“Closing the corporate gender gap isn’t a side issue. It’s an economic necessity. Programs and policies designed to reduce bias and ensure fairness don’t just benefit women. They benefit everyone,” the report’s conclusion reads.

What Do Employees Worry About?

What Do Employees Worry About?

What do employees worry about? Research on workplace fears ranks compensation, job security, overloaded productivity and workplace harassment as top concerns.

Employees Worry About Being Underpaid

The number one workplace fear for more than 60 percent of Americans is being underpaid, according to recent research from Business.org.

It’s a valid concern, The Economic Policy Institute reports employers underpay employees $15 billion each year through overtime and misclassification violations. Business.org also found that younger workers ages 18 to 34 were roughly 30 percent more likely than Baby Boomers to fear being underpaid.

Employees Worry About Job Security

Job security, rather the fear of losing a job, is the top work-related fear for over 20 percent of employees. “I just worry about my ability to [keep my job] so that I can pay bills and take care of my family… I am stressed out more often than not,” says one respondent. Much like compensation concerns, job security is another workplace fear with a rational basis. Almost 20 million Americans lost their jobs due to layoffs or discharge in 2016, reported by The Bureau of Labor Statistics.

Employees Worry About Being Overloaded at Work

Nearly 15 percent of employees say work overload is their number one workplace fear. Business.org cited research that found in comparison to working between 35 to 40 hours a week, working over 55 hours a week was shown to increase the risk of heart attack by almost 15 percent and the risk of stroke by more than 33 percent. Productivity showed a sharp decline after 50 hours of work a week. Half of employees who are moderately to highly engaged are burnt out. They’re dealing with exhaustion, frustration, anxiety and struggling to keep up with daily tasks. Engagement has limits and when it’s too high it can start to affect productivity, retention and job satisfaction.

Some employees are more fearful than others. Adults ages 18 to 34, individuals with a previous workplace issue, parents and those living in urban areas had a higher level of fear. In contrast, those who identified as white had less concern than respondents of other ethnicities. “Issues of race and gender equality, equal pay for equal work, freedom from harassment of any kind all remain unresolved. [All workers] should feel supported for their efforts,” one respondent said.

Leaders that address workplace fears are likely to have more loyal employees. Employees feel valued when employers make a point to acknowledge and take their concerns into consideration when making changes in policies and processes. Supervisors could benefit from direct and open communication with employees. It has the potential to limit some of employee concerns by replacing fear of the unknown with confidence in transparency from upper management.

More on Topics Related to What Do Employees Worry About?

How Does Financial Wellness Affect Health?

Zombie Employees: Who Are They and What Do You Need to Know

How to Reduce Stress in the Workplace: 3 Tips to Start

Are Employees Who Work From Home Happier?

How Do You Handle Management Issues?

What Percentage of Employees Spend More Than They Earn?

How Do Employees Pay for Unexpected Expenses?