2024 Financial Wellness in the Workplace Report

PNC conducted dual surveys of U.S. employers and workers to better understand how financial wellness is being prioritized and addressed in the workplace. Employers are addressing benefits to help their workers secure their financial futures while also lowering stress and improving productivity and retention. Highlighted below are key findings that can provide insight for retirement plan sponsors and their workers. The full report is available online:

U.S. Worker Key Findings

  • 3 hours per week is how long American workers spend worrying about their finances at work.
  • 68% of workers surveyed said financial stress negatively impacts their overall mental health.
  • 3 in 5 workers say they are living paycheck to paycheck. This is highest for Gen Z and Millennials.
  • 1 in 3 workers have used a financial planner in the last three years.
     

U.S. Employer Key Findings

  • 3 in 4 employers say workers’ financial stress negatively impacts operations.
  • 9 in 10 employers say they are financially better or the same as last year but feel more squeezed.
  • 1 in 4 employers think more benefits can enhance a person’s financial security.
  • 52% offer retirement match, up from 46% in 2023.

 

Financial Wellness Strategies that Can Make an Impact

Education and Counseling

When it comes to their financial knowledge and decision-making, employees are most confident in setting a budget, comparing financial products, managing their debt, sticking to a budget, and creating a savings plan. They are least confident in their knowledge of investing and planning for retirement. Despite their concerns about retirement, and their lack of confidence in investing and retirement planning, most are not turning to financial professionals.

  • Just one in three employees worked with a financial professional in the past three years.

Reassess Communication Strategy

Most employees are aware of the basic benefits offered by their employer. However, they may not be confident in their ability to make appropriate decisions when it comes to those benefits. It is important to communicate not only what the benefits include but how employees can take full advantage of them.

What are the best ways to communicate employee benefits?

  • Regular benefit review meetings
  • Company-wide email campaigns
  • Dedicated intranet portal or webpage

Incentivize Participation and Engagement

For employees that may be under utilizing a given benefit, like a retirement plan, an incentive can help increase participation. For example, to encourage employee participation, consider new forms of non-cash incentivization allowed in the SECURE 2.0 Act of 2022.

  • Incentivization might include prizes such as a prime parking spot or an extra vacation day.

At PNC Institutional Asset Management® (IAM), we help plan sponsors understand and meet their fiduciary obligations. We serve as a retirement plan advisor to companies and offer financial education to their employees. Our team would love to provide a free review of your retirement plan and share the latest research on building effective employee financial education campaigns.

Kaley Keeley Buchanan - Senior Vice President of Head of PNC Organizational Wellness

Kaley Keeley Buchanan 
Senior Vice President and 
Head of PNC Organizational Financial Wellness