Employers are increasingly concerned about the financial well-being of their workers as well as their ability to afford health care.
That’s one of the takeaways from the Mercer 2023-24 Inside Employees Minds study, which was the subject of a recent webinar.
This year marks the third edition of the study, which has been conducted in the third quarter of each year since 2021. The 2023 study examined more than 4,500 full-time employees in organizations with more than 250 workers.
Financial concerns continue to weigh heavily on workers, with short- and long-term financial security remaining at the top of the list of issues that keep employees up at night, the study found. In addition, concerns about debt have increased significantly among employees. Covering monthly expenses was among the top unmet needs of workers. Ability to retire, work-life balance, health and fitness, mental and emotional health, and personal debt round out the top six employee concerns.
Employers’ concerns about their workers’ finances are growing, as is the support they provide for their workers’ financial well-being, said Katie Hockenmaier, director of U.S. Wealth and Defined Contribution Research. at Mercer.
Nearly 4 in 10 employers (39%) said the financial well-being of their employees is a top concern, a growth of 10 percentage points from 2022. Another 39% cite employee well-being as being of medium concern.
The top five employer financial wellness offerings currently available to workers are employee discount programs or partnerships, basic financial management tools, financial investing training, financial planning training, and reimbursement or l tuition assistance. Debt management services, personalized credit or debt counseling, and benefits for caregivers of children and seniors are the top financial wellness offerings that employers plan to add to the list. future.
Employees worry about being able to afford health care
Health care affordability remains a key issue for low-income workers, and employers are making it a priority, said Beth Umland, director of Mercer’s U.S. health and benefits research.
She highlighted survey findings that 51% of workers earning less than $30,000 a year said they were able to afford the health care they need without financial hardship. That compares to 91% of those earning $200,000 or more per year who said they could easily afford their health care.
Employers are paying attention to this concern, the study found, with 56% saying they will not shift any health plan costs to employees in 2024, despite faster cost growth.
Some employers are adopting more progressive strategies to increase health care affordability, the study finds. Fifteen percent of employers offer free employee-only coverage in at least one workplace health insurance plan. Nearly 40% of employers offer a plan with no or low deductible. Six percent of employers make higher health savings account contributions to low-income workers.
The survey showed that employers are increasing their support for workers in other ways. Umland said 21% of employers offer or plan to offer free or subsidized meals at work and subsidized phones and internet for remote work. Nearly one in five workers (18%) provide or plan to provide transportation or a commute subsidy for workers. Fourteen percent offer or plan to offer refinancing assistance to workers with student loans.
Improving mental health care
Workers are increasingly expressing concerns about their mental health and burnout. More free time and greater flexibility would help ease these concerns, the study found.
A third of workers said more free time would improve their mental health and ease burnout. Nearly a quarter (24%) wanted a reduced workload, while 22% said more resources would be helpful.
Employers with 500 or more employees are responding by expanding paid sick and bereavement leave, the study found. Eighty-four percent of employers said they currently offer or plan to offer paid sick leave, with a median of seven paid sick leave days. Bereavement leave is also expanding, with 97% of employers offering paid leave to an immediate family member, 69% offering leave to an extended family member or friend, and 56% offering leave in case of miscarriage.
Key takeaways for employers
Lauren Mason, Mercer’s senior director, said employers can take four key lessons from the study’s findings.
- Make sure your employee value proposition always resonates with your staff. Don’t become complacent.
- Develop a comprehensive strategy to support the financial health of workers – including health care affordability.
- Act now to prepare your benefit programs for the health impacts of climate change.
- Examine practices around sustainable and flexible working – particularly leave – to meet the mental health needs of workers.
Susan Rupe is editor-in-chief of InsuranceNewsNet. She previously served as communications director for an insurance agents association and was an award-winning journalist and editor. Contact her at (email protected). Follow her on Twitter @INNsusan.
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