Workers battling burnout along with money woes, study finds

Financial concerns keep U.S. workers awake at night, but workers are battling burnout along with money woes. The result is a significant shift in the way employees look at work, a Mercer consultant said during a webinar Thursday.

In the past, workers believed in working hard now to gain resources to attain well-being in the future, said Lauren Mason, Mercer senior principal and career consultant. Today, employees are more focused on the here and now. Employees’ current view is prioritizing well-being now and working in the way that works best for them in order to live life now.

Mercer’s consultants presented findings from their 2022 Inside Employees’ Minds study that showed workers are as concerned about their well-being as they are about their financial situation. “Employees are telling us, ‘My well-being can’t wait; I need to focus on it right now,’” Mason said.

Financial concerns rose to the top of the list of what has employees worried in 2022, Mason said. The ability to cover monthly expenses ranked first among worker concerns this year, compared with ranking ninth on the same list of concerns last year.

“Employees are telling us, ‘My well-being can’t wait; I need to focus on it right now.’”
— Lauren Mason, Mercer senior principal and career consultant

But concerns about workload and work/life balance were in third place, while mental and emotional health ranked fifth among employee worries.

The great resignation is not over, Mason said, and despite increasing concerns over job security, the study found workers are less committed to their current jobs than they were last year.

Nearly half (48%) of those in the food/retail/hospital sector said they are seriously considering leaving their employers – up from 37% in 2021. Nearly four in 10 (39%) of health care workers said they feel the same way – an increase from 34% in 2021. Low-wage workers also are eager to jump ship, with 48% of those making less than $60,000 a year saying they want to leave their jobs, up from 37% in 2021.

What can employers do to combat this level of worker disengagement? The main thing, Mason said, is to “put retention at the center of everything you do.”

• Don’t rely on a softening economy to “fix” issues. Employees are worried about job security, but they still are looking to leave.
• Recommit to those workers who stay. Workers say pay is the top reason they would consider leaving their current employer, yet current compensation strategies benefit job switchers and not those who stay.
• Rethink elements of broken work. Pay won’t solve everything. Use predictive analytics and employee listening to uncover what’s really going wrong. Rethink work structures and ways of engaging to solve real issues.

Inflation hitting workers hard

Workers are making lifestyle changes in response to inflation and the most common change is reducing spending, which was reported by 62% of employees. Katie Hockenmaier, Mercer senior investment consultant, said 39% of those with annual incomes of more than $200,000 reported tapping into their savings to make ends meet while nearly one in three workers with a $60,000 annual income took on a second job or a side gig.

One side effect of high inflation, Hockenmaier said, is that fewer than half of workers are confident about retirement. Fewer than half (46%) said they are confident they can turn their retirement savings into a consistent income stream.

“Employers must think holistically about what their workers need to prepare for retirement,” she said.

She noted that 43% of workers wish their employer would increase their matching retirement plan contributions while 42% would like to have employer matching contributions for student loan payments and 38% want employers to match their health savings account contributions.

The study showed workers want their employers to enhance their well-being support across a spectrum of financial needs.

• Leverage a wide range of financial support. Expand financial wellness offerings to support items such as budgeting and debt management, financial coaching, emergency savings and hardship assistance.
• Support younger workers in building their nest egg by matching contributions to everyday expenses such as student loan debt or HSA contributions.
• Build retirement readiness by providing access to inflation responsive investments and options to support spending in retirement.

Affording health care

Health care affordability is the biggest struggle faced by employees, especially low-wage workers, said Kate Brown, Mercer Center for Healthcare Innovation leader.

Most employers with 500 or more workers (72%) said they will absorb some or all health care cost increases for 2023 instead of passing them on to workers.

“Employers recognize the strain workers feel in terms of affordability,” she said. “This also is a reflection of the continued tight labor market.”

Employers also can focus on steering workers to alternative care networks or targeted support for workers with specific health conditions. In addition, employers can expand and promote virtual care options to address convenience and cost.

Mental and emotional health are most pronounced for younger workers, as well as women and Black, LGBT and Hispanic workers, Brown said. Burnout is hitting those in the retail and hospitality industries particularly hard, she noted, with the survey finding 65% of workers in those sectors said they are exhausted on any given day.

The majority of workers reported a reduced workload would be the top action that would ease their burnout. Ranking right behind reduced workload were an enhanced employee assistance program and access to mental health apps.

Brown advised employers to reimagine well-being at work.

• Address the root causes of burnout. Understand what creates unsustainable workloads and take action.
• Support work-life boundaries. Encourage and support healthy boundaries at work.
• Expand well-being benefits and help employees access the care and resources they need.

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 editor in chief, magazine, 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].