2014 employee-financial-stress-final

download

of 34

Embed Size (px)

description

 

transcript

  • SHRM Survey Findings: Employee Financial Stress In collaboration with and commissioned by June 25, 2014
  • How do HR professionals rate the overall financial health of their employees? Roughly three-fifths (61%) of HR professionals consider their overall employees financial health to be no better than fair (50% fair, 10% poor and 1% very poor), and 38% describe it as very good or good. Organizations with greater proportions of hourly employees were more likely to indicate that their employees overall financial health was "fair," whereas organizations with fewer hourly workers reported better financial health among staff. What age group is most likely to experience financial stress? Fifty percent of HR professionals indicate that people in the 25-34 age range experience the most financial stress. Twenty-nine percent of HR professionals reported employees between 35 and 44 years as the age group to experience the most financial stress. How financially literate are employees? The majority (70%) of HR professionals report employees as being somewhat financially literate. Thirteen percent describe their employees as very financially literate, but 17% are considered to be not at all financially literate. Organizations with a smaller proportion of hourly employees were more likely have employees rated as very financially literate, whereas organizations with a greater proportion of hourly employees were more likely to have employees rated as not at all financially literate. SHRM/Elevate: Employee Financial Stress SHRM 2014 2 Key Findings
  • What financial benefits do organizations offer their employees? Nineteen percent of organizations offer employees loan products from a third-party provider, and 18% of organizations offer payroll advances. What impact do financial benefits have on employees overall ability to manage their financial difficulties? Nearly three-quarters of HR professionals indicated that offering third-party provider loan products has a positive impact on employees overall ability to manage their financial difficulties, and slightly over one-half of HR professionals reported pay advances having a positive impact. What types of services are organizations offering to help employees manage their finances? The most common financial services that organizations offer employees are retirement planning and consultation (81%) and financial literacy training for investing (42%). Less prevalent financial services include financial literacy training for basic budgeting (25%) and credit score monitoring (8%). SHRM/Elevate: Employee Financial Stress SHRM 2014 3 Key Findings (continued)
  • Employees struggling to gain control of their finances may have significant ramifications in the workplace. A combined 61% of HR professionals describe the overall financial situation of their employees as no better than fair (50% fair, 10% poor and 1% very poor), signaling that financial issues could be a growing challenge for employees in many workplaces. Anxiety related to finances could be a growing source of employee stress that has a direct impact on health care costs, absence and productivity. Thus money management strategies, including budgeting and investing, may increasingly be considered as a part of workplace stress management and wellness initiatives. Undoubtedly, one major area of discussion for organizations will involve employees compensation. Though wages have not grown significantly in recent years, high levels of financial stress could eventually give way to greater wage pressure, especially for jobs that are difficult to fill. In addition, increased financial stress among the rank and file could influence the debate on executive compensation. Organizations may want to reevaluate their benefits program to fit the needs of their staff. HR professionals report that a portion of Millennials are the employees most likely to experience financial stress in their organizations. Demographic differences in the financial challenges of employees could potentially be a source of intergenerational tension or conflict and could affect how financial benefits are tailored to different age groups within the workplace. SHRM/Elevate: Employee Financial Stress SHRM 2014 4 What do these findings mean for the HR profession?
  • SHRM/Elevate: Employee Financial Stress SHRM 2014 5 The State of Employee Financial Stress
  • Overall Employee Financial Health SHRM/Elevate: Employee Financial Stress SHRM 2014 6 Note: n = 383. Respondents who answered dont know were excluded from this analysis. Percentages do not equal 100% due to rounding. 4% 34% 50% 10% 1% Very good Good Fair Poor Very poor Organizations with greater proportions of hourly employees were more likely to indicate that their employees overall financial health was fair. Organizations with fewer hourly workers were more likely to rate their employees financial health as good.
  • Employee Financial Health Rating: Fair and Good Ratings (by percentage of hourly employees) SHRM/Elevate: Employee Financial Stress SHRM 2014 7 Note: Respondents who answered dont know were excluded from this analysis. 50% 29% 31% 46% 59% 60% 55% 34% 43% 57% 39% 30% 24% 17% Employees overall 0% 1%-20% 21%-40% 41%-60% 61%-80% 81%-100% Percentage of Hourly Employees Fair (n = 182) Good (n = 120)
  • Most Financially Stressed by Age SHRM/Elevate: Employee Financial Stress SHRM 2014 8 Note: n = 409. Respondents who answered dont know were excluded from this analysis. Percentage do not equal 100% due to multiple response options. 20% 50% 29% 20% 13% 4% 0% 18-24 years of age 25-34 years of age 35-44 years of age 45-54 years of age 55-64 years of age 65-74 years of age 75 years of age and over
  • Overall Employee Financial Literacy SHRM/Elevate: Employee Financial Stress SHRM 2014 9 Note: n = 391. Respondents who answered dont know were excluded from this analysis. 13% 70% 17% Very financially literate Somewhat financially literate Not at all financially literate Organizations with fewer hourly employees were more likely to have rated employees as very financially literate, whereas organizations with more hourly employees were more likely to have rated employees as not at all financially literate.
  • Employee Financial Literacy (by percentage of hourly employees) SHRM/Elevate: Employee Financial Stress SHRM 2014 10 Note: n = 378 Respondents who answered dont know were excluded from this analysis. Percentages may not equal 100% due to rounding. 13% 62% 32% 15% 1% 6% 4% 70% 38% 61% 76% 80% 70% 62% 17% 0% 7% 9% 18% 24% 34% Employees overall 0% 1%-20% 21%-40% 41%-60% 61%-80% 81%-100% Percentage of Hourly Employees Very financially literate Somewhat financially literate Not at all financially literate
  • SHRM/Elevate: Employee Financial Stress SHRM 2014 11 Financial Stress in the Workplace
  • Financial Stress and Employee Absenteeism SHRM/Elevate: Employee Financial Stress SHRM 2014 12 Note: n = 352-396. Only respondents who answered strongly agree and agree are shown. Respondents who answered dont know were excluded from this analysis. Only statistically significant differences are shown. 59% HR professionals agree that employees at their organization have missed work due to transportation issues in the last year. 37% HR professionals agree that employees at their organization have missed work due to a financial emergency in the last year. Larger organizations are more likely than smaller organizations to agree that their employees have missed work due to a financial emergency in the past 12 months. 500 to 2,499 employees (40%) 1 to 99 employees (17%)
  • Employee Termination Due to Employee Financial Issues SHRM/Elevate: Employee Financial Stress SHRM 2014 13 Note: n = 189. Respondents who answered Im not sure, but I dont think so, Im not sure, but I believe yes or dont know were excluded from this analysis. Yes 13% No 87%
  • Employees Seeking Assistance from Their Employer SHRM/Elevate: Employee Financial Stress SHRM 2014 14 Note: n = 349-374. Only respondents who answered strongly agree and agree are shown. Respondents who answered dont know were excluded from this analysis. Only statistically significant differences are shown. 47% HR professionals agree that employees have approached a manager or supervisor for personal financial advice in the last year. 53% HR professionals agree that employees have approached a representative of the organization asking for a pay advance in the last year. Larger organizations are more likely than smaller organizations to agree that their employees have approached a representative asking for a pay advance in the past 12 months. 500 to 2,499 employees (63%) 1 to 99 employees (25%) 100 to 499 employees (34%)
  • Organizations Providing Annual Cost-of-Living Raises to Employees to Keep Up with Inflation SHRM/Elevate: Employee Financial Stress SHRM 2014 15 Note: n = 416. Respondents who answered dont know were excluded from this analysis. 12% 32% 13% 30% 13% Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree