Financial well-being, health care affordability are top concerns for workers and bosses

Employers are showing greater concern over their workers’ financial well-being as well as their workers’ ability to afford health care.

Those were among the takeaways from the Mercer 2023-24 Inside Employees Minds study, which was the topic of a recent webinar.

This year marks the third edition of the study, which has been compiled in the third quarter of each year since 2021. The 2023 study examined more than 4,500 full-time employees of organizations with more than 250 workers.

Financial concerns continue to weigh heavily on workers, with short- and long-term financial security continuing to top the list of issues keeping employees up at night, the study showed. In addition, concerns about debt have increased significantly among employees. Covering monthly expenses was listed as the top unmet need among workers. Being able to retire, workload and life balance, physical health and fitness, mental and emotional health, and personal debt rounded out the top six employee worries.

Employers’ concerns about their workers’ finances are increasing, and their planned support for their workers’ financial wellness is increasing as well, said Katie Hockenmaier, US wealth and defined contribution research director with Mercer.’

Nearly 4 in 10 employers (39%) said employees’ financial well-being is of high concern, a growth of 10 percentage points from 2022. Another 39% cite employees’ well-being as being of medium concern.

The top five employer financial wellness offerings currently offered to workers are employee discount programs or partnerships, basic money management tools, financial investing education, financial planning education and tuition reimbursement or assistance. Debt management services, personalized credit or debt counseling, and child/elder caregiving benefits are the top financial wellness offerings employers plan to add in the future.

Employees concerned about affording health care

Health care affordability remains a key issue for lower-income workers, and employers are making it a priority, said Beth Umland, Mercer US health and benefits research director.

She pointed to the survey findings that showed 51% of workers making less than $30,000 annually said they are able to afford the health care they need without financial hardship. This compares with 91% of those earning $200,000 or more a year who said they can easily afford their health care.

Employers are paying attention to this concern, the study showed, with 56% of employers saying they will not shift any health plan cost to employees in 2024, despite faster cost growth.

Some employers are taking more progressive strategies to boost health care affordability, the study revealed. Fifteen percent of employers offer free employee-only coverage in at least one workplace medical plan. Nearly 40% of employers offer a plan with no deductible or a low deductible. Six percent of employers make larger health savings account contributions to lower earning workers.

The survey showed employers are increasing their support to workers in other ways. Umland said 21% of employers either offer or plan to offer free or subsidized meals at work and subsidized phone and internet for remote working. Nearly 1 in 5 (18%) provide or plan to provide transportation or a commuter subsidy to workers. Fourteen percent offer or plan to offer refinancing assistance for workers who have student loans.

Improving mental health care

Workers are increasingly reporting concerns about their mental health and burnout. More time off and greater flexibility would help ease those concerns, the study showed.

One-third of workers said more time off would support their mental health and ease burnout. Nearly one-quarter (24%) wanted a reduced workload while 22% said more resources would help.

Employers with 500 or more workers are responding by expanding paid leave for illness and bereavement, the study showed. Eighty-four percent of employers said they currently offer or plan to offer paid time off for sickness, with a median of seven days of paid sick leave offered. Bereavement leave also is expanding, with 97% of employers offering paid leave for an immediate family member, 69% offering leave for an extended family member or friend, and 56% offering leave for miscarriage.

Key takeaways for employers

Lauren Mason, Mercer senior principal, said the employers can glean four key takeaways from the study findings.

1. Make sure your employee value proposition still resonates with your workforce. Don’t become complacent.
2. Develop a holistic strategy to support workers’ financial health – including health care affordability.
3. Act now to prepare your benefit programs for the health impact of climate change.
4. Examine practices around sustainable and flexible work – particularly time off – to support workers’ mental health needs.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

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Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].