Financial Finesse Releases Report Illuminating the New American Workforce's Shifting Priorities and Expectations and How Employers Must Adapt
"Hustle culture" is over: The New American Workforce, led by Millennials and Gen Z, is demanding balance, meaning, and a life well-lived right now (vs. waiting for retirement).
EL SEGUNDO, Calif., June 21, 2022 /PRNewswire/ -- Financial Finesse, the leading independent provider of omnichannel workplace financial wellness coaching benefits, today released its 2021 Financial Wellness Year in Review which digs into changing views about financial wellness and traditional retirement planning set off by the pandemic, WFH, higher prices, rising interest rates, and other factors.
"We're experiencing a workplace revolution. Emboldened employees are demanding more from employers. They want flexible, wellness-conscious workplaces that support them as whole people, including their mental, physical, and financial health, and they are willing to change jobs for the right culture and benefits," said Financial Finesse Founder and CEO, Liz Davidson. "A recent study found that more than half of jobseekers now consider health and wellness benefits a "must-have" before accepting a new role – up 100% since the start of the pandemic.1 Another found that 86% of employees said financial well-being benefits impact their desire to stay with their employer.2"
"Over the last ten years, much of the focus in the financial wellness space has been on retirement preparedness but employee views are changing. A recent survey found that 84% of employees are more focused on becoming financially independent than on achieving a traditional retirement3," says Greg Ward, CFP® and Director of the Financial Finesse Financial Wellness Think Tank™. "These incongruous macro trends led us to investigate changes in employee behaviors and concerns over the last three years [2019-2021]."
A bellwether for what's to come, the analysis revealed incremental but telling shifts in financial wellness priorities and actions: away from retirement and toward more immediate financial concerns:
- Younger employees are stressed: Among Millennial and Gen Z employees, 81% are experiencing some level of financial stress and 40% are uncomfortable with their debt.
- Employees prioritized financial resilience: The percentage of financially resilient workers (defined as having a handle on cash flow, being comfortable with debt, paying credit card balances in full, and maintaining an emergency fund) improved from 34% in 2019 to 40% in 2021.
- Improved resilience came at a price: While overall Financial Wellness Scores held steady at 5.3 (on a 10.0-point scale), improvements in Cash Flow and Debt Management (immediate concerns) were offset by declines in Retirement, Insurance, and Estate Planning (future concerns).
- Focus on retirement cooled: Among employees who completed a financial wellness assessment for the first time, a proxy for Americans overall, the percentage contributing to their workplace retirement plan dropped by 8%. The percentage "concerned about retirement planning" dropped by 6%.
"For employers looking to attract and retain talent, through The Great Resignation and beyond, offering in-demand financial wellness coaching benefits is often the solution hiding in plain sight," continued Davidson. "Once a nice-to-have, a quality benefit that provides every single employee with unlimited access to digital and human-based financial coaching and that has been proven to reduce financial stress and increase financial resiliency is now a must for competitive employers. Financial wellness coaching benefits are a strong differentiator and, for many employees, a life-changer."
"For employers already offering our digital and human-based financial coaching, the results have been extraordinary," adds Ward. "As expected, the more channels employees engage with, the better the outcomes. Among employees who have engaged online, participated in group learning, and worked with a Financial Coach, we've seen a 36% increase in workers who are financially resilient – a huge win for both employers and employees." In addition to program results like this one, the report offers employers an analysis of emerging trends and actionable recommendations to better support employees.
For more information:
Download the full "2021 Financial Wellness Year in Review" here.
Download a Q&A on the Year in Review with Financial Finesse founder and CEO, Liz Davidson, here.
View a short Financial Finesse brand video here.
About Financial Finesse:
Financial Finesse is the country's leading independent provider of unbiased workplace financial wellness coaching benefits. Since 1999, the firm has helped over 10,000 organizations improve their bottom lines and become more competitive by empowering their employees to achieve financial security. The company's award-winning digital and human-based financial coaching is made available to employees at no cost as an employer-sponsored benefit. With highly personalized and ongoing one-on-one coaching from CFP® professionals via phone and live chat, AI-powered virtual coaching, live workshops, webcasts, educational tools, and content, Financial Finesse reaches over 2.4 million individuals every year. www.financialfinesse.com
1Metlife. 2022. "The Rise of The Whole Employee". 2SoFi. 2022. "The Future of Workplace Financial Well-Being". 3Franklintempelton.com. 2021. "Voice of The American Worker Survey".
Contact: Maggie Weinberg, Financial Finesse
Email: [email protected]
Cell: 917.370.2220
SOURCE Financial Finesse
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