The results of s survey from Financial Finesse's "Workplace Financial Wellness in America" were released on Tuesday, showing that 64% of the country's workforce are living paycheck to paycheck, a decrease in financially resilient workers, and significant racial inequalities when it comes to positive cash flow in a given household.
According to a news release, Financial Finesse Founder and CEO Liz Davidson noted the consequences of high financial stress can include declining physical and mental health as well as a drop in employee productivity and satisfaction, while Greg Ward, director and certified financial planner for Financial Wellness Think Tank, said the numbers were "startling."
"It's unacceptable that a whopping 64% of the country's workforce are living paycheck to paycheck without a financial cushion when we have solutions available to address this problem,” Ward said.
According to the news release, the survey found that 34% of employees said they had unmanageable financial stress with the greatest source of stress reported as the nation’s economy and/or the stock market and how it might impact their financial future.
Moreover, according to the release, Hispanic and Black populations were 28% and 38% less likely to have positive cash flow in comparison to the White population. The survey also found that single parents were the group most likely to endure financial stress, at 57%, according to the report, which noted that single adults without children came in at 28%, married parents at 23% and married couples without children at 15%.
The survey also noted in one year, the percentage of workers identified as “financially resilient” dropped form 37% to 32%, attributable to the pressure of inflation on household incomes, according to the release, which also noted positive movement among employees who received financial coaching.
“It's amazing to see the growth of employee financial wellness programs, but to truly restore upward mobility, especially to younger generations, we need employers of all sizes to coalesce around this issue and make it a central part of their commitment to their employees,” Ward said in the news release.
Of the employees who received some sort of coaching, 89% reported they save enough now to receive their employer’s full retirement match with some changes to their spending habits, the release noted. A total of 72% said they save regularly towards their goals, according to the release, with 65% responding they can now pay their bills on time with the help of a paycheck-based plan.
The targeted wellness programs for minority employees also had a positive impact, with a 25% drop in high financial stress levels and a 23% jump in financial resilience, according to the news release, paired with a bump in retirement confidence.
Davidson noted in the release that high financial stress can impact the workplace and taking action can help thwart issues that arise from financial stress.
"Looking at today's headlines, it's no wonder that these employees are facing such high levels of financial stress," Davidson said in the news release.
Ward, who served as one of the report’s authors, noted in the news release that 64% of the nation’s workforce reports it is living paycheck to paycheck without any financial safety net. He also said this circumstance is “unacceptable,” noting that employers should offer solutions to tackle this issue.
According to the news release, Financial Finesse provides unbiased financial wellness coaching programs to provide individuals and organizations with the ability to make educated financial choices.
The company, the news release said, helps employees boost their financial standing by working with employers to develop programs tailed to address the needs of specific groups of employees, spotlighting changes in behavior that can show immediate results.
