The Top Stress for Workers Is Finances, and It's Spreading to $100,000 Jobs

• Financial stress is a concern among a majority of employees, according to a PwC survey, and it is negatively impacting work performance.
• Even at jobs paying $100,000 or more, 15% of workers say they are living paycheck to paycheck.
• Employee financial wellness programs can help. At financial services company Truist, a vast majority of workers signed up for a program with a $750 incentive.

Both worker productivity and employee engagement have been taking a hit in recent months, driven in large part by soaring stress and burnout.

But an overlooked worry could also being playing a significant role in deteriorating mental health among workers — the impact of financial strain.

More than half (57%) of employees said that finances were the top cause of stress in their lives, according to a PwC survey conducted in January of more than 3,600 U.S. workers.

That stress comes from many fronts, including inflation, rising interest rates, and worries stemming from stagnant salaries — inflation has outpaced wage growth — and workers surveyed said money issues adversely affected their sleep, mental health, and relationships at home.

Furthermore, the money concerns stretched across all pay scales. While 28% of all workers said they run out of money between paychecks all or part of the time, 15% of those earning at least $100,000 said the same thing, according to the survey.

That is hurting production as well — 56% of workers spend three hours or more per week at work dealing with or thinking about issues related to their personal finances.

One bright spot: the vast majority (74%) of money-stressed workers are seeking guidance when dealing with big financial decisions or crises. Overall, the stigma around asking for help is lessening, as just 33% said they'd find it embarrassing to ask for guidance or advice about their finances compared to 42% in 2019, according to the survey. That has opened the door for more companies to help workers manage their money, with employee financial wellness programs now becoming a more frequent part of overall benefits packages.

Financial wellness services usually involve some combination of coaching, webinars, workshops, and online tools. The variety and flexibility of these options are intentionally designed to give employees freedom and convenience, rather than shoehorning them into a rigid program.

"We tell HR managers that if we can get your team quite a bit less stressed about the money aspect, you'll find they are happier, more productive, take fewer sick days, and don't ask for paycheck advances," says Jesse Mecham, founder of YNAB, a financial education company with a budgeting app.

Promoting financial wellness

Even though employees might crave the help, personal financial issues are a sensitive topic. HR managers should think carefully about how they introduce a financial wellness program, Mecham says. A big launch or rollout can depress employee interest.

Instead, Mecham suggests using milestones in an employee's life to promote financial wellness. For example, when an employee gets a raise, the HR manager could congratulate them — and then remind them of the company program that will help them get the most out of their raise.

Mecham also discourages company-wide workshops as a way to spread the message about these programs to employees. Many employees will be reluctant to identify themselves as needing help. Instead, getting the word out through internal communications, like the company newsletter or when W-2 tax forms are sent, is a more discreet and effective way of communicating.

Besides telling employees that the company wholeheartedly supports efforts at reducing financial stress, Mecham says that HR managers should reinforce the idea that smarter spending also means spending money on things that align with the employee's values and priorities — but HR managers should outsource these services and not be the company's financial wellness coach. "That's too big of an ask," he says.  

Truist introduced its employee financial wellness program in 2017, called Truist Momentum. Employees can learn about everything from reducing student loans to creating an emergency savings account to growing their credit score through a web-based platform, in-person and virtual classes, and a hard copy workbook, said Brian Nelson Ford, head of financial wellness at Truist. The program is also available to outside companies.

Ford said that any financial wellness program HR managers provide should do three things: inspire, educate, and equip. "If you remove any one of these elements, the program is just not as effective," he said.

HR managers can inspire their employees by talking about their individual values, what means the most to them, and giving them hope that those values can be realized. Educating employees both clears up misconceptions and broadens their knowledge base. Equipping them involves removing as many obstacles as possible and giving them a path to take action.

Confidentiality is also critical, as no employee wants to admit in public that they need financial help, Ford says. The Truist program is purely educational and doesn't promote or sell any of its products to its employees.  

The process begins with what they call an Ignite session that addresses employee worries in a fun and engaging way, before workers choose whether to participate or not. They are given a registration code unique to Truist for the online platform, which also allows the company to measure data anonymously.

Ongoing reinforcement keeps employees motivated. As they work their way through the process, employees are encouraged, which boosts their self-esteem.

Truist gives employees a $750 incentive for completing the Momentum program. HR managers don't have to offer an incentive before rolling out a program, Ford said, but it takes at least $150 before employees start to pay attention.

He added that 46,000 out of approximately 50,000 current Truist workers participated in the Momentum program — increasing the company's employee retention rate by 53%. For HR managers worried about losing talent, employee financial wellness programs could be a key part in acquiring and retaining workers in a competitive marketplace.

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