Bank of America Study Finds 84% of Employers Now Say Offering Financial Wellness Tools Helps Increase Employee Retention – PR Newswire
97% of employers feel responsible for employee financial wellness, with 91% seeing higher employee satisfaction when offering resources to manage overall wellbeing
CHARLOTTE, N. C. , Sept. 27, 2022 /PRNewswire/ — Bank associated with America today announced findings from its 12th annual Workplace Benefits Report, ” Navigating a New Era of Financial Wellness . ” The report revealed that 84% of companies now say that offering monetary wellness tools can help reduce worker 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 work in the past year.
The report also explored the impact of the particular current economic and inflationary environment on employees’ economic wellness, revealing that 62% of employees are stressed about their finances. In addition, 80% of workers are concerned about inflation, and 71% feel the cost of living is outpacing growth within their salary or wages. This is having a good impact upon employees overall feeling of financial wellness. After the percentage associated with employees who feel financially well bounced above pre-pandemic levels in February 2022 (57% vs. 55% in 2019), the particular percentage dropped to a 5-year low of 44% within July 2022 .
“Offering comprehensive benefits and wellbeing programs can be critical for employers looking to reduce attrition, can empower employees to take control associated with their personal finances, plus improve employee satisfaction, ” said Lorna Sabbia , Head of Retirement and Personal Wealth Solutions at Bank associated with America. “We are committed to partnering along with employers to provide financial health and fitness solutions through a holistic plus integrated approach that’s actionable for every employee. inch
Based on the nationwide survey of 824 employees and 846 companies conducted in February, plus a second survey of 478 workers conducted within July, the Workplace Benefits Report examines trends related to workplace financial advantages and well being programs.
Employers are embracing financial wellness programs and expanding support
In response to increased stress about financial health, employers continue to embrace applications to expand support for their employees. For example , 91% associated with employers see higher worker satisfaction when they offer sources to handle overall wellness. Other top employer results include:
- Employers feel an increased sense of responsibility for the monetary wellness of employees . 97% associated with employers feel accountable for employee financial health and wellness (up from 95% in 2021, and from 41% in 2013) – with two-thirds (62%) going as far to say they feel extremely responsible (up from 56% in 2021). Employees agree with this sentiment, as 82% say employers should play a role in supporting their economic wellness.
- Wellbeing programs result in tangible benefits for companies and employees . 80 percent of employers agree that offering financial wellness support can result in more satisfied, loyal, engaged plus productive workers. Employers that take it a step further and broaden their health care programs in order to include mental and physical wellness resources are viewing noticeable improvements in productivity (50%), worker stress (43%), employee morale (41%) and employee creativity and innovation (36%).
- Equity grants are usually powerful recruitment and retention incentives . 76% of employers believe equity compensation is a differentiator for employee recruitment and preservation, and 44% of employees who participate in equity compensation plans say it was an important reason for accepting the job.
- Health care remains an opportunity . 84% of companies feel very responsible for their own employees’ understanding of retirement healthcare needs plus costs, and 89% associated with employers who else offer Wellness Savings Accounts (HSAs) contribute to their employees’ savings. Healthcare education is an opportunity, along with only 54% of employers communicating regarding these topics at least once a year.
- Access to investment advice. With four-in-ten workers saying these people want access to advice through an investment professional, 62% of employers are now offering employees access to expense advice services (up from 55% within 2021).
- Heightened focus on D& I programs . 74% of employers think that diversity and inclusion programs are important for retaining talent, plus half (50%) of companies currently offer diversity and inclusion programs.
Employees seeking programs to help alleviate monetary strain plus plan for the future
Employees express uncertainty about current financial conditions and are taking actions to relieve financial strain:
- Employees are dipping into savings due in order to financial stress . Half of employees have taken action in the last six months due to economic strain, including tapping into emergency cost savings (21%), working additional hours (21%), looking for higher paying careers (20%) and taking out a 401(k) hardship withdrawal (6%).
- Retirement remains the top concern, driving action . As of July 2022 , 56% of employees are confident they will reach their particular retirement goals, down through 69% within February 2022 . Seventy-four percent state investing in their 401(k) plus other accounts will assist them build a retirement nest egg, and 61% are contributing enough to maximize their employer match.
- Education about Social Security is definitely an opportunity. Only 38% of workers say they will understand social security advantages. Even among Baby Boomers, 41% still do not understand interpersonal security. While 48% associated with employees indicate they are not getting enough education about the particular program, only 40% of employers provide employees social security assistance and schooling.
- Employees are usually more optimistic about their own intermediate, longer term future. When searching at the next 2-3 years, most employees said they felt positive about their particular financial (56%), social (60%), and psychological (62%) well-being.
- Digital equipment play a key role in driving employee engagement . Workers are looking for out digital tools that will offer personalized support, and employees find tools that can provide streamlined information plus help track and set financial objectives most useful. Fifty-two percent associated with employees prefer to use a digital app to control their finances.
Financial wellness levels vary based on employees’ ethnicity, gender and generation
Employees always show differences in financial wellness whenever viewed by gender, ethnicity or era. Though the monetary wellness gap has closed for women, this has expanded for minorities since February. Top findings include:
- Women lag men but are closing the space when planning for long-term goals . Women continue to trail men in their feelings regarding financial wellbeing and preparedness. For example, 54% of men and 69% of women do not understand social security benefits. Despite this, the financial health and fitness gender gap is shutting. As associated with July 2022 , women were less likely to feel monetarily well than men simply by five percentage points (42% of women vs . 47% of men), down from 10 portion points in 2021 (47% of girls versus. 57% of men) and 17 percent points within 2020 (41% of ladies compared to. 58% associated with men).
- Minorities have experienced the greater negative impact to their feelings of financial well being . Workers across various ethnicities reported significant drops in their perceptions associated with financial health, with minorities reporting a lot more significant declines. For instance, 49% of White/Caucasian workers feel economically well (compared with 56% in February), followed by 37% of Asian employees (67% in February), 33% associated with Hispanic/Latino employees (47% in February) plus 32% of Black/African American employees (50% in February).
- Feelings associated with financial health and wellness have declined across generations this year . Since Feb, feelings of financial wellness have dropped significantly across generations, with Gen Z/Millennials at -15%, Gen Xers at -14% and Baby Boomers/Silent Generation at -10%.
Bank of America’s Retirement & Personal Prosperity Solutions organization serves more than 26, 000 companies of all sizes and more compared to 5. 9 million workers as associated with December 31, 2021 1 . Financial institution of The united states offers institutional client employees a range of economic benefit applications and solutions to help them pursue their financial future.
More findings, which includes action steps for employers, are available in the particular Bank of America 2022 Workplace Advantages Report .
Workplace Benefits Statement Methodology
Escalent surveyed a national sample associated with 834 workers who are working full-time and take part in 401(k) plans, plus 846 companies who offer both a 401(k) plan and possess sole or shared obligation for decisions made in the plan. The particular survey was conducted between February 3, 2022 and February 28, 2022 . To qualify for the study, employees had to be current participants of the 401(k) strategy and employers had to provide a 401(k) plan option. Neither has been required in order to work with Bank of America. Bank of America had been not identified as the sponsor of the particular study. Financial institution of The united states Retirement & Personal Wealth Solutions assist employers plus employees to take actions and work toward their own financial targets today and into retirement.
July 2022 Pulse Study Methodology
Escalent selected a nationwide sample associated with 478 employees who are operating full-time plus participate in 401(k) plans. The survey was conducted among July 5, 2022 and July 19, 2022 . To qualify for the survey, workers had in order to be current participants of a 401(k) program. They weren’t required to use Bank of America. Bank of America has been not recognized as the recruit of the particular study. Financial institution of The united states Retirement plus Personal Prosperity Solutions help employers and employees to take action and function toward their particular financial goals today plus into pension.
Monetary Wellness in Bank associated with America
At Bank of America, we know that assisting the bodily, financial and emotional wellbeing of our employees within their individual life also supports them in their work life — so they may be the best at work plus at home. When it comes in order to financial wellbeing, we believe that the more informed people are about their own money, the clearer their particular financial outlook can be. This applies not just to our clients, but to our employees, as well. This will be why we offer robust monetary offerings to the employees that focus upon driving better behaviors throughout life priorities and the economic spectrum — budgeting, preparing, saving, investing and more. Our competitive financial benefits – including 401(k) plans that will include a company match, retirement advice 2 , health financial savings accounts 3 , banking 4 and investing 5 programs, educational assets and monetary wellness tools – assist employees address money issues in the particular here-and-now, prepare for pension and help protect their family over the long term.
one Source: Global Wealth and Investment Management Finance.
2 Expense advice on 401(k) assets is usually only provided to plan participants through certain investment decision advisory applications as directed by strategy sponsors.
3 Made obtainable through Financial institution of The united states, N. A.
4 Bank products are usually available through Bank of America, N. A., plus affiliated banks.
five Investment decision products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Financial institution of America
Bank of America is 1 of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations along with a full range associated with banking, trading, asset management and other economic and risk management products and services. The company provides unmatched convenience in the United States , serving approximately 67 million consumer plus small business customers with around 4, 000 retail financial centers, approximately 16, 000 ATMs and award-winning electronic banking with approximately 55 million verified digital users. Bank of America is definitely a global leader within wealth administration, corporate plus investment banking and trading across a broad range associated with asset classes, serving corporations, governments, institutions and individuals around the world. Financial institution of The united states offers industry-leading support in order to approximately a few million small business households through a suite of innovative, easy-to-use online products and solutions. The company serves clients via operations across the usa , its territories and around 35 countries. Bank associated with America Corporation stock ( NYSE: BAC ) is listed on the particular New York Stock Exchange.
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Retirement and Personal Wealth Solutions is the institutional retirement business associated with Bank of America Company (“BofA Corp. “) operating under the name “Bank of The united states. ” Purchase advisory and brokerage services are provided by wholly owned non-bank affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF& S” or even “Merrill”), the dually registered broker-dealer plus investment adviser and Member SIPC. Banking activities may be performed by wholly owned financial affiliates associated with BofA Corp., including Financial institution of America, N. The., Member FDIC.
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