COMP NEWS – A new study from Bank of America has found that more than 80% of employers believe that offering financial wellness tools can help reduce employee attrition. Almost the same percentage of employees also find that access to those tools attracts higher-quality employees to their organizations.
Bank of America today announced findings from its 12th annual Workplace Benefits Report, “Navigating a New Era of Financial Wellness.” The report revealed that 84% of employers now say that offering financial wellness tools can help reduce employee attrition, and 81% say wellness tools help attract higher quality employees. This is critical to employers, as 46% have seen an increase in resignations over the past year. In addition, approximately one in three employees have switched jobs or thought about switching jobs in the past year.
The study also uncovered widespread reports of financial anxiety from employees and concern about the impact of inflation. More than 70% of employees feel that their living costs are rising faster than their salary and wage increases.
The report also explored the impact of the current economic and inflationary environment on employees’ financial wellness, revealing that 62% of employees are stressed about their finances. In addition, 80% of employees are concerned about inflation, and 71% feel the cost of living is outpacing growth in their salary or wages. This is having an impact on employees overall feeling of financial wellness. After the percentage of employees who feel financially well bounced above pre-pandemic levels in February 2022 (57% .vs 55% in 2019), the percentage dropped to a 5-year low of 44% in July 2022.
In response to increased stress about financial wellness, employers continue to embrace programs to expand support for their employees. For example, 91% of employers see higher employee satisfaction when they offer resources to manage overall wellbeing.
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