Financial wellness is a critical component of employee experience and well-being, and plays a pivotal role in overall organizational success. However, a significant gap exists between leaders' perceptions of their employees’ financial well-being and employees' actual experiences. This disparity highlights the heightened need for employee listening to better align company support and resources with employee needs.
BrightPlan’s 2023 Wellness Barometer Survey uncovered a number of discrepancies between employees and leaders related to financial well-being, company benefits, and workplace trust. Here is a summary of some of these disconnects.
According to the survey, the majority of employees have debt, over a third have little or no emergency savings, and most are saving either nothing at all or less than 10% of their income for retirement each year. Yet, leaders tend to overestimate their employees’ financial health. Just 9% of employees reported having an "excellent" financial situation, while leaders estimate that 26% of their workforce falls into this category. This disparity underscores the need for leaders to gain a deeper understanding of their employees' financial challenges and offer up the appropriate level of support.
Less than half (48%) of employees believe their company offers them the necessary financial guidance, support, and tools to achieve their life goals, yet 94% of leaders believe they provide adequate support. Additionally, 74% of employees express dissatisfaction with their company's financial benefits, and a quarter of them are unsure if their employer offers benefits beyond retirement matching and stock options. These findings emphasize the need for employers to reassess their current offerings and actively listen to employee feedback to effectively bridge the gap.
50% of employees feel they are not paid fairly (yet leaders estimate only 35% of their employees feel this way) and 80% of employees believe their employer should take action to address the racial wealth gap. 97% of leaders say their company is taking action. Additionally, 71% of employees vs. 96% of leaders say their company has handled DE&I issues “extremely” or “somewhat” well in the past 12 months. These findings emphasize the urgent need for employers to reassess their current practices and take proactive measures to address financial disparities, promote pay equity, and foster an inclusive workplace.
Here are some strategies to help close the gap between employee realities and leader perceptions and ensure employees’ voices are heard.
Narrowing the divide between leaders' perceptions and employees' lived experiences requires empathy and understanding. It starts with listening intently to workforce needs, curating a mix of benefits that resonates with diverse needs, and then communicating those offerings effectively.