Beat the ‘Great Resignation’ with financial benefits
This is according to nudge’s 2022 Global Financial Wellbeing report.
Why You Should Care
As the war for talent wages rages on, employers are trying to figure out how best to retain their workers.
Could more financial benefits be the solution?
Find out why nudge believes they are, especially in the current cost of living crisis.
The ‘Great Resignation’ is real, and is almost a year old. The record-breaking quit rate over the past ten months shows that there is a disconnect between the needs of employees and what is being offered by their employers.
Employees want to feel valued by their organizations, and if they don’t, then they are prepared to look for a new job elsewhere.
A survey of 7,000 employees in 14 countries by financial wellbeing platform nudge found that 59% believe their company sees them as interchangeable and replaceable – this rises to 57% in Europe, the Middle East, and Asia (EMEA).
Almost eight in ten told nudge they want to work at an organization where they feel connected to its purpose, as well as to their colleagues.
Younger, new employees have the weakest connection to their employers. Just 35% of Gen Z (16 to 24-year-olds) told nudge they had a strong connection to their employer.
nudge’s 2022 Global Financial Wellbeing report
This begs the question: what can employers do to forge better connection with their workers?
Financial benefits are the solution
nudge’s co-founder and director Jeremy Beament noted: “Companies can strengthen the connection by providing tools and resources to help employees achieve their financial goals.
“Finpowerment — the way employers can empower their people to feel confident and in control of their money through financial education — significantly contributes to overall wellbeing.”
56% of those surveyed told nudge that financial benefits would make them more committed to their current employer – the top benefit they wanted was financial education.
nudge’s 2022 Global Financial Wellbeing report
68% of those who don’t currently have financial education benefits said they would utilize them if offered. Those who did currently have these perks were 24% more likely to feel connected to their employers (and had 23% more trust in their organization) than those without these benefits.
Young employees were 24% more likely to feel connected to their employer if they had financial education benefits at work.
nudge’s 2022 Global Financial Wellbeing report
In addition, 35% of the higher Gen Z earners who had access to financial education at work trusted their employer – this is compared to 15% without financial education at work.
The importance of financial benefits is not surprising given that employees are struggling with an escalating cost of living crisis. Inflation in the UK has reached 9% – a 40-year high – and the annual inflation rate in the US reached 8.3% in April.
nudge’s 2022 Global Financial Wellbeing report noted: “The opportunity for employers is clear. By helping employees improve their financial health, through skills and knowledge to achieve their life goals at a time when they need it most, builds trust and understanding of their financial situation.”
Those with financial education benefits already were 20% more likely to feel hopeful or contentment about their financial situation, and 20% less likely to be anxious about money. 70% of all workers surveyed said they were anxious about money – this rises to 73% in EMEA and 76% in North America.
Beament concludes: “The ‘Great Resignation’ is happening because companies haven’t created long-lasting bonds with their people.
“Since money worries can significantly impact mental health, financial education is a gift that the employer can give to the employee that has a massive impact on their overall wellbeing”.
But it is important to remember that it is not enough for employers to introduce benefits – organizations also need to make sure employees know how to make use of the perks.
nudge’s report concluded: “The opportunity for employers to save the connection with their employees is there for the taking, the question is: if not now, when?”
