A new Financial Wellbeing Employer Survey report focusing on small businesses, published by the Employee Benefit Research Institute (EBRI), finds that both large and small employers have developed a sense of responsibility to help workers’ mental, physical and financial well-being, while also sharing a focus on helping workers address day-to-day financial issues.
The report also finds that smaller employers lag behind larger businesses in the likelihood of offering various core, voluntary, and financial well-being benefits. While most employees in the United States (55%) work for a company that employs over 500 workers, the U.S. Census Bureau estimates that about 98% of businesses in the United States employ fewer than 100 workers. Understanding how small businesses conceptualize, design, implement, prioritize, and analyze financial well-being benefits is essential to developing a complete understanding of the financial well-being benefits offered in the workplace.
“From basic money management to retirement preparedness, creating a workplace culture that prioritizes financial literacy and planning is incredibly valuable for both employers and employees, especially in smaller organizations that are looking to compete with larger businesses for talent,” says Michael Majors, vice president of HR solutions at Paychex. “As this research validated, benefits that support financial wellness can have a direct impact on business results and productivity. Workers who feel financially stable are more likely to be satisfied in their work and less likely to be absent or tardy.”
Key findings from the report include the following.
- Both large and small employers have developed a sense of responsibility in helping their employees across three dimensions of well-being — emotional and mental health, physical health, and financial wellness.
- Costs of financial wellness initiatives may be a barrier for wider adoption of financial well-being initiatives. Nearly three in 10 small employers cite costs to the employer as a challenge in offering financial wellness initiatives, and nearly one-quarter cite costs to the employee as a challenge. Additionally, small employers were more likely than large employers to report that their financial well-being initiatives were fully paid by workers, which may have an adverse effect on enrollment.
- Both large and small employers view employee benefits as successful in both improving the well-being of workers and driving business outcomes. A majority of both large and small employers view efforts in improving workers’ physical, financial, emotional, and social well-being as very good or excellent. Also, most small employers view financial wellness benefits as very effective in driving certain business goals, such as improving worker productivity, attracting/retaining workers, improving employee satisfaction, and reducing absenteeism and tardiness.
