In today’s world, the employee is in the driving seat and organizations need to provide best in class benefits to retain their top talent. Gen Z is the most effected by the global decline that came from the pandemic, 75% of young employees feel anxious about their current financial situation, and 41% are living paycheck to paycheck. This financial challenge isn’t going anywhere, and it can only make things worse when we consider that Gen Z employees are most likely to be feeling a disconnect to their employers due to remote working for most of their working lives.
Employees need connection
While employers can’t change market conditions, they can offer tools and technology to improve employees’ financial wellbeing. 77% of employees say that they want to work at an organization where they feel connected to the purpose and the people. Our research outlines the benefits that people are crying out for to stay loyal – and financial wellbeing is top of the list, 56% of people with financial education say they are more committed to their employer.
We’ve found that financial education is even more crucial when it comes to the younger generations: those aged 16 to 34 who earn $92,000 or more per year felt significantly more connected to their employer when they received financial education benefits. This lays the foundation for employees who are yet to provide financial education to review their wellbeing benefit strategy, especially if they have a younger workforce.
Medha Rishi, a seasoned HR Executive with expertise in Global Healthcare and Wellbeing, emphasizes the importance of wellbeing programs when attracting young talent:
“As part of the tech world here in Silicon Valley, we have always participated in Silicon Valley Employers Forum organization to achieve our goal of not only offering competitive benefits and well-being programs globally, but also targeting the 90th percentile in order to recruit and retain talent from the Googles and the Facebooks of the world.
The R&D studies of these programs are just the tip of the iceberg.
We deployed programs consistently and regularly within our global workforce to measure satisfaction through quarterly pulse surveys and annual experience surveys.”
Gen Z employees want stronger financial wellbeing
22% of workers under the age of 35 are less likely to feel connected to their employers, so it really is important to support this demographic with financial education. Gen Z employees may end up leaving their company and employers will have expensively high turnover rates. Finding the right people can be a long and difficult process which is why companies need to have world class benefits to hold on to their bright sparks.
Our research shows the link between employers who help their staff achieve greater financial wellbeing, and improved employee satisfaction. 54% of people with financial education respondents feel a better sense of hope and contentment with their finances. Organizations who educate their young employees can grow happier and more dedicated people in the process, the question is – what’s stopping you?
The issue is serious, and the time to build a happier, more committed workforce is now
52% of Gen Z employees feel interchangeable and easily replaceable. 41% of them are focused solely on their paycheck, are feeling disengaged and anxious about their finances.
Organizations can support their people with positive actions, and offering employees the tools they need to improve their financial wellbeing. We call this finpowerment.
Finpowerment leads to loyalty – especially for the younger generation
Financially empowered employees (who receive financial education and effective benefits communication) are 24% more likely to feel connected to their employer. 35% of young, high-earning employees with access to financial education benefits trust their employers, compared to just 15% of those who do not receive financial education benefits. Younger employees feel particularly connected to their employers when they receive financial education benefits.
By helping employees on their way to “finpowerment” (empower their people to feel confident and in control of their money through financial education), employees feel more trust, connection and commitment to their workplace and company.
Find out more on positive results of financial education
A workplace financial wellbeing program is no longer a nice-to-have, and a one-size-fits-all approach just doesn’t work, especially for a global workforce.Through mixed-method qualitative and quantitative research, we uncover that the optimal solution is personalized, unbiased education that drives action through technology. Meaning employees are:
- 66% more hopeful about their finances
- 41% have increased their savings
- 34% stronger understanding of their employee benefits
- 63% more likely to feel committed to their employer