97% of employers feel responsible for employee financial
wellness, with 91% seeing higher employee satisfaction when
offering resources to manage overall wellbeing
CHARLOTTE, N.C., Sept. 27,
2022 /PRNewswire/ -- Bank of America today
announced findings from its 12th annual Workplace Benefits Report,
"Navigating a New Era of Financial Wellness." The report
revealed that 84% of employers now say that offering financial
wellness tools can help reduce employee attrition, and 81% say
wellness tools help attract higher quality employees. This is
critical to employers, as 46% have seen an increase in resignations
over the past year. In addition, approximately one in three
employees have switched jobs or thought about switching jobs in the
past year.
The report also explored the impact of the current economic and
inflationary environment on employees' financial wellness,
revealing that 62% of employees are stressed about their finances.
In addition, 80% of employees are concerned about inflation, and
71% feel the cost of living is outpacing growth in their salary or
wages. This is having an impact on employees overall feeling of
financial wellness. After the percentage of employees who feel
financially well bounced above pre-pandemic levels in February 2022 (57% vs. 55% in 2019), the
percentage dropped to a 5-year low of 44% in July 2022.
"Offering comprehensive benefits and wellness programs can be
critical for employers looking to reduce attrition, can empower
employees to take control of their personal finances, and improve
employee satisfaction," said Lorna
Sabbia, Head of Retirement and Personal Wealth Solutions at
Bank of America. "We are committed to partnering with employers to
provide financial wellness solutions through a holistic and
integrated approach that's actionable for every employee."
Based on a nationwide survey of 824 employees and 846 employers
conducted in February, and a second survey of 478 employees
conducted in July, the Workplace Benefits Report examines trends
related to workplace financial benefits and wellness programs.
Employers are embracing financial wellness programs and
expanding support
In response to increased stress about financial wellness,
employers continue to embrace programs to expand support for their
employees. For example, 91% of employers see higher employee
satisfaction when they offer resources to manage overall wellbeing.
Other top employer findings include:
- Employers feel an increased sense of responsibility for the
financial wellness of employees. 97% of employers feel
responsible for employee financial wellness (up from 95% in 2021,
and from 41% in 2013) – with two-thirds (62%) going as far to say
they feel extremely responsible (up from 56% in 2021). Employees
agree with this sentiment, as 82% say employers should play a role
in supporting their financial wellness.
- Wellness programs result in tangible benefits for employers
and employees. 80% of employers agree that offering
financial wellness support can result in more satisfied, loyal,
engaged and productive employees. Employers who take it a step
further and broaden their wellness programs to include mental and
physical wellness resources are seeing noticeable improvements in
productivity (50%), employee stress (43%), employee morale (41%)
and employee creativity and innovation (36%).
- Equity grants are powerful recruitment and retention
incentives. 76% of employers believe equity compensation
is a differentiator for employee recruitment and retention, and 44%
of employees who participate in equity compensation plans say it
was an important reason for accepting the job.
- Health care remains an opportunity. 84% of
employers feel very responsible for their employees' understanding
of retirement healthcare needs and costs, and 89% of employers who
offer Health Savings Accounts (HSAs) contribute to their employees'
savings. Healthcare education is an opportunity, with only 54% of
employers communicating about these topics at least once a
year.
- Access to investment advice. With four-in-ten employees
saying they want access to advice from an investment professional,
62% of employers are now offering employees access to investment
advice services (up from 55% in 2021).
- Heightened focus on D&I programs. 74% of employers
believe that diversity and inclusion programs are important for
retaining talent, and half (50%) of employers currently offer
diversity and inclusion programs.
Employees seeking programs to help alleviate financial strain
and plan for the future
Employees express uncertainty about current economic conditions
and are taking actions to relieve financial strain:
- Employees are dipping into savings due to financial
strain. Half of employees have taken action in the last
six months due to financial strain, including tapping into
emergency savings (21%), working additional hours (21%), looking
for higher paying jobs (20%) and taking out a 401(k) hardship
withdrawal (6%).
- Retirement remains a top concern, driving action. As of
July 2022, 56% of employees are
confident they will reach their retirement goals, down from 69% in
February 2022. Seventy-four percent
say investing in their 401(k) and other accounts will help them
build a retirement nest egg, and 61% are contributing enough to
maximize their employer match.
- Education about Social Security is an opportunity. Only
38% of employees say they understand social security benefits. Even
among Baby Boomers, 41% still do not understand social security.
While 48% of employees indicate they are not getting enough
education about the program, only 40% of employers offer employees
social security support and education.
- Employees are more optimistic about their intermediate,
longer term future. When looking at the next 2-3 years, most
employees said they felt optimistic about their financial (56%),
social (60%), and mental (62%) well-being.
- Digital tools play a key role in driving employee
engagement. Employees are seeking out digital tools that offer
personalized support, and employees find tools that can provide
streamlined information and help track and set financial goals most
useful. Fifty-two percent of employees prefer to use a digital app
to manage their finances.
Financial wellness levels vary based on employees' ethnicity,
gender and generation
Employees continue to show differences in financial wellness
when viewed by gender, ethnicity or generation. Though the
financial wellness gap has closed for women, it has expanded for
minorities since February. Top findings include:
- Women lag men but are closing the gap when planning for
long-term goals. Women continue to trail men in their
feelings about financial wellness and preparedness. For example,
54% of men and 69% of women do not understand social security
benefits. Despite this, the financial wellness gender gap is
closing. As of July 2022, women were
less likely to feel financially well than men by five percentage
points (42% of women vs. 47% of men), down from 10 percentage
points in 2021 (47% of women vs. 57% of men) and 17 percentage
points in 2020 (41% of women vs. 58% of men).
- Minorities have seen a greater negative impact to their
feelings of financial wellness. Employees across various
ethnicities reported significant drops in their perceptions of
financial wellness, with minorities reporting more significant
declines. For example, 49% of White/Caucasian employees feel
financially well (compared with 56% in February), followed by 37%
of Asian employees (67% in February), 33% of Hispanic/Latino
employees (47% in February) and 32% of Black/African American
employees (50% in February).
- Feelings of financial wellness have declined across
generations this year. Since February, feelings of
financial wellness have declined significantly across generations,
with Gen Z/Millennials at -15%, Gen Xers at -14% and Baby
Boomers/Silent Generation at -10%.
Bank of America's Retirement & Personal Wealth
Solutions organization serves more than 26,000 companies of all
sizes and more than 5.9 million employees as of December 31, 20211. Bank of America
offers institutional client employees a range of financial benefit
programs and solutions to help them pursue their financial
future.
More findings, including action steps for employers, are
available in the Bank of America 2022 Workplace Benefits
Report.
Workplace Benefits Report Methodology
Escalent surveyed a national sample of 834 employees who are
working full-time and participate in 401(k) plans, and 846
employers who offer both a 401(k) plan and have sole or shared
responsibility for decisions made in the plan. The survey was
conducted between February 3, 2022
and February 28, 2022. To qualify for
the survey, employees had to be current participants of a 401(k)
plan and employers had to offer a 401(k) plan option. Neither was
required to work with Bank of America. Bank of America was not
identified as the sponsor of the study. Bank of America Retirement
& Personal Wealth Solutions help employers and employees to
take action and work toward their financial goals today and into
retirement.
July 2022 Pulse Study
Methodology
Escalent surveyed a national sample of 478 employees who are
working full-time and participate in 401(k) plans. The survey was
conducted between July 5, 2022 and
July 19, 2022. To qualify for the
survey, employees had to be current participants of a 401(k) plan.
They weren't required to work with Bank of America. Bank of America
was not identified as the sponsor of the study. Bank of America
Retirement and Personal Wealth Solutions help employers and
employees to take action and work toward their financial goals
today and into retirement.
Financial Wellness at Bank of America
At Bank of America, we know that supporting the physical,
financial and emotional wellbeing of our employees in their
personal life also supports them in their work life — so they can
be the best at work and at home. When it comes to financial
wellness, we believe that the more informed people are about their
money, the clearer their financial outlook can be. This applies not
just to our clients, but to our employees, as well. This is why we
offer robust financial offerings to our employees that focus on
driving better behaviors across life priorities and the financial
spectrum — budgeting, planning, saving, investing and more. Our
competitive financial benefits – including 401(k) plans that
include a company match, retirement advice2, health
savings accounts3, banking4 and
investing5 programs, educational resources and financial
wellness tools – help employees address money issues in the
here-and-now, prepare for retirement and help protect their family
over the long term.
1Source: Global Wealth and Investment Management
Finance.
2Investment advice on 401(k) assets is only provided to
plan participants through certain investment advisory programs as
directed by plan sponsors.
3Made available through Bank of America, N.A.
4Bank products are available from Bank of America, N.A.,
and affiliated banks.
5Investment products are available from Merrill Lynch,
Pierce, Fenner & Smith Incorporated.
Bank of America
Bank of America is one of the world's leading financial
institutions, serving individual consumers, small and middle-market
businesses and large corporations with a full range of banking,
investing, asset management and other financial and risk management
products and services. The company provides unmatched convenience
in the United States, serving
approximately 67 million consumer and small business clients with
approximately 4,000 retail financial centers, approximately
16,000 ATMs and award-winning digital banking with
approximately 55 million verified digital users. Bank of America is
a global leader in wealth management, corporate and investment
banking and trading across a broad range of asset classes, serving
corporations, governments, institutions and individuals around the
world. Bank of America offers industry-leading support to
approximately 3 million small business households through a suite
of innovative, easy-to-use online products and services. The
company serves clients through operations across the United States, its territories and
approximately 35 countries. Bank of America Corporation
stock (NYSE: BAC) is listed on the New York Stock
Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America
newsroom and register for news email alerts.
www.bankofamerica.com
Retirement and Personal Wealth Solutions is the institutional
retirement business of Bank of America Corporation ("BofA Corp.")
operating under the name "Bank of America." Investment advisory and
brokerage services are provided by wholly owned non-bank affiliates
of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith
Incorporated (also referred to as "MLPF&S" or "Merrill"), a
dually registered broker-dealer and investment adviser and Member
SIPC. Banking activities may be performed by wholly owned banking
affiliates of BofA Corp., including Bank of America, N.A., Member
FDIC.
Investment products:
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
© 2022 Bank of America Corporation. All rights reserved.
MAP#4942964
Reporters may contact:
Don
Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com
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