Money
LIMRA’s Consumer Sentiment Study shows that a third of Americans have continuously reported high stress about their household finances since 2020. As financial stress continues to rise among American workers, the role of employer-sponsored wellness programs have never been more critical.
Overall, employee stress has increased in the past year and workers are nearly twice as likely to report experiencing more stress than they are to say their stress has declined, naming money and finances as the main cause.
Additionally, 4 in 10 workers attribute additional declines in physical and mental health to financial stress, especially among Gen Z and millennials who are more socially connected and economically impacted than older generations.
While financial stress is rising across all generations as consumers face persistent inflation and greater economic uncertainty, LIMRA found that women, younger workers, single/divorced individuals and those with lower income or education levels are most vulnerable.
“Wellness itself is a difficult concept to define; it means different states and situations to each individual. Whatever the qualifier, however, wellness can be considered the opposite of stress,” said Deb Dupont, assistant vice president and director of LIMRA’s Institutional Retirement Research.”Identifying the impediments to wellness can be key to achieving it,” said Dupont. “For many, a paycheck is the foundation for financial wellness. Benefits are also integral to wellness. Employers are in the wellness game and providing benefits is a wellness offering.”
Employers are increasingly expected to support their employees’ wellbeing and research shows that 70% of workers expect support for their physical, mental and financial health. Wellness programs not only amplify the effectiveness of traditional benefits but are also correlated with reduced stress and higher job satisfaction.
Despite this, awareness remains low. According to LIMRA, over 60% of workers are unsure if their employers offer a wellness program and only one-third of employers actively communicate about them.
Beyond altruism, wellness programs offer tangible benefits to employers by reducing turnover, enhancing productivity and fostering loyalty. Workers enrolled in wellness initiatives report significantly lower financial, emotional and physical stress.
“Obviously stress of any sort can undermine a worker’s productivity, as well as their outlook about their employer,” said Bryan Hodgens, senior vice president and head of LIMRA Research. “It’s important for employers and the service providers that help deliver benefits, fully understand workers’ stress as they design benefits programs and build programs to help workers manage their situations and work toward achieving wellness.”
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