Financial Finesse, the country’s leading independent provider of unbiased workplace financial wellness coaching programs, has released Workplace Financial Wellness in America, an annual snapshot of the American workforce through the lens of financial wellness. The flagship study analyzes employee financial stress and resilience levels, reporting on how workers feel about their finances, what’s contributing to the financial wellness gap, and the role of holistic financial wellness programs in addressing these issues. This study comes along with the release of a companion report featuring proven tactics employers can use to increase the efficacy of financial wellness benefits.
“The story we’re seeing emerge from this part year is a tale of two economies,” says Liz Davidson, founder and CEO of Financial Finesse. “While there are encouraging signs with gains in the stock market and more people reporting financial stability, these positive trends come from people with existing assets. Persistent inflation and higher interest rates have left Americans who are struggling more financially vulnerable than ever.”
Key findings are below.
- Financial stress is on the rise. Regardless of income level, American workers are more likely to report feeling high or overwhelming levels of financial stress than in prior years, with financially stable employees concerned about a looming recession and financially struggling employees worried about their ability to make ends meet. The percentage of emplyees reporting unmanageable levels of financial stress rose by 16% from 2022 to 2023.
- Financially stable employees with assets are pulling ahead. The percentage of financially secure employees increased by 69% from 2022 to 2023.
- At-risk employees are falling further behind. The percentage of employees in financial crisis increased by 24% from 2022 to 2023.
The report also analyzed the effectiveness of financial coaching, finding that more than half of workers (52%) who initially reported high or overwhelming stress subsequently reported some or no financial stress after working with a financial coach. Additionally, after working with a financial coach, there was a 53% increase in those who were in the stable planning or optimizing stages of the financial wellness journey, having processed from the uncertain and significantly more stressful struggling and crisis stages.
