Employee financial well-being has declined since the outbreak of the pandemic. According to the survey, 41 percent of employees are living paycheck to paycheck this year, up from 38 percent in 2019. The number of employees living paycheck to paycheck has more than doubled from 18% in 2019 to 36% this year among those earning $100,000 or more. Over half of workers earning less than $50,000 (52%) are living paycheck to paycheck, as are single parents (53%), and those in poor or fair health (57%). Furthermore, employees living paycheck to paycheck are nearly twice as likely (48%) to leave their employer for a 5% raise as those who do not live paycheck to paycheck (29 percent ). The survey of over 9,600 US workers took place between December 2021 and January 2022.
According to the survey, financial problems are widespread. Many workers reported difficulty accessing or paying for housing (23%), healthcare (22%), or healthy food (19%), and nearly half had a financial shock in the previous year. Three in ten (30%) had significant medical expenses, while 23% were placed on furlough or had their hours reduced. One in every seven (15%) people have been victims of financial fraud or scam, and 13% have had significant expenses as a result of a divorce or separation. These financial shocks may have prompted employees to make financial decisions that could jeopardize their long-term security, such as taking out a home equity loan or downsizing their home (23 percent); taking out a 401(k) loan (26 percent); or being unable to pay their mortgage, rent, or utility bills (36 percent ).
"The pandemic continues to have an impact on the financial well-being of working Americans," said Mark Smrecek, WTW's senior director of Retirement. "As employees worry about inflation, economic insecurity, and workplace challenges, the link between financial stability and overall well-being has become even more tenuous." Employees are now looking for assistance from their employers. Employers, in turn, can help employees weather the storm and improve their financial stability by taking wellbeing into account when developing programs."
According to the survey, more than one-third of respondents (36%) said employer-provided resources aided in their financial situation improvement. This is an increase from 27% in 2017. Furthermore, nearly half of respondents (46%) want financial apps and tools to be a key component of their employee benefit programs.
Employees who postponed medical care suffered
In addition, the survey found a strong link between healthcare affordability and deferred care. Four out of ten employees (40%) reported deferring medical care in the previous year. This includes 28% who postponed or canceled a medical procedure, appointment, or treatment, and 17% who did not fill a prescription. One-fifth (20%) of respondents said their healthcare provider delayed or canceled a procedure, appointment, or treatment. When asked why they delayed care, 25% said they couldn't afford it, while 23% were unsure of the costs.
According to the survey, employees who are having difficulty paying for healthcare are more likely to suffer as a result of deferred care. Overall, one-third of respondents (33%) who had care deferred or canceled, either by themselves or by a provider, said their health suffered; however, more than half (58%) of those who found it extremely difficult to afford care said their health suffered as a result.
"Access to and affordability of healthcare has always been a top priority for both employers and employees." In light of an expected increase in medical inflation, we anticipate that most employers will prioritize affordability and continue to focus on expanded use of virtual care, including telemedicine, as an integral part of their healthcare strategy in order to provide cost-effective, high-quality care to their employees and families," said Regina Ihrke, senior director, Health and Benefits, WTW.
About the Survey
During December 2021 and January 2022, the 2022 Global Benefits Attitudes Survey was conducted. There are 9,658 respondents from large and midsize private employers in the United States, representing a wide range of industries.