Employers have a role to play in helping employees build financial resilience. Find out some strategies that can help prepare your employees for unexpected financial crises or losses.
Amid mounting inflation, geopolitical concerns and ongoing economic uncertainty, many workers are turning to their employers for financial guidance. In fact, according to the 2022 Morgan Stanley at Work State of the Workplace Financial Benefits Study, 84% of employees feel their employers should be more involved with helping them through their financial challenges.
In a survey conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research,1 60% of employees admitted to being at least moderately concerned about their household’s financial well-being. Additionally, 48% of employees said they do not have enough savings to handle an emergency or sudden large expense. Taken together, these numbers seem to show that many workers may be struggling to build financial resilience, which the World Economic Forum defines as “the ability to deal with an unexpected loss of income or financial emergency”. 2
There are several ways employers may be able to help employees enhance their financial resilience, such as educating them about savings strategies, fostering a culture of financial support and introducing a financial wellness program. Here we look at some of these strategies.