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SHRM Survey Findings: Employee Financial Stress SHRM Survey Findings: Employee Financial Stress

SHRM Survey Findings: Employee Financial Stress - PowerPoint Presentation

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SHRM Survey Findings: Employee Financial Stress - PPT Presentation

In collaboration with and commissioned by June 25 2014 How do HR professionals rate the overall financial health of their employees Roughly threefifths 61 of HR professionals consider their overall employees financial health to be ID: 730174

shrm financial employee employees financial shrm employees employee stress elevate organization organizations 2014 note respondents answered professionals don

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Slide1

SHRM Survey Findings: Employee Financial Stress

In collaboration with and commissioned by

June 25, 2014Slide2

How do HR professionals rate the overall financial health of their employees? Roughly three-fifths (61%) of HR professionals consider their overall employees’ financial health to be no better than fair (50% fair, 10% poor and 1% very poor

), and 38% describe it as “very good” or “good.” Organizations

with greater proportions of hourly employees were more likely to indicate that their employees’ overall financial health was "fair," whereas organizations with fewer hourly workers reported better financial health among staff.

What age group is most likely to experience financial stress?

Fifty percent of HR professionals indicate that people in the 25-34 age range experience the most financial stress. Twenty-nine percent of HR professionals reported employees between 35 and 44 years as the age group to experience the most financial stress. How financially literate are employees? The majority (70%) of HR professionals report employees as being “somewhat financially literate.” Thirteen percent describe their employees as “very financially literate,” but 17% are considered to be “not at all financially literate.” Organizations with a smaller proportion of hourly employees were more likely have employees rated as “very financially literate,” whereas organizations with a greater proportion of hourly employees were more likely to have employees rated as “not at all financially literate.”

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

2

Key FindingsSlide3

What financial benefits do organizations offer their employees? Nineteen percent

of organizations offer employees loan products from a third-party provider, and 18% of organizations offer payroll advances. What impact do financial benefits have on employees’ overall ability to manage their financial difficulties?

Nearly three-quarters of HR professionals indicated that offering third-party provider loan products has a positive impact on employees’ overall ability to manage their financial difficulties,

and

slightly over one-half of HR professionals reported pay advances having a positive impact. What types of services are organizations offering to help employees manage their finances? The most common financial services that organizations offer employees are retirement planning and consultation (81%) and financial literacy training for investing (42%). Less prevalent financial services include financial literacy training for basic budgeting (25%) and credit score monitoring (8%). SHRM/Elevate: Employee Financial Stress ©SHRM 20143Key Findings (continued)Slide4

Employees’ struggling to gain control of their finances may have significant ramifications in the workplace. A combined 61% of HR professionals describe the overall financial situation of their

employees as no better than fair (50% fair, 10% poor and 1% very poor), signaling that financial issues could be a growing challenge for employees in many

workplaces. Anxiety related to finances could be a growing source of employee stress that has a direct impact on health care costs, absence and productivity. Thus money management strategies, including budgeting and investing, may increasingly be considered as a part of workplace stress management and wellness initiatives.

Undoubtedly, one major area of discussion for organizations will involve employees’ compensation.

Though wages have not grown significantly in recent years, high levels of financial stress could eventually give way to greater wage pressure, especially for jobs that are difficult to fill. In addition, increased financial stress among the rank and file could influence the debate on executive compensation.Organizations may want to reevaluate their benefits program to fit the needs of their staff. HR professionals report that a portion of Millennials are the employees most likely to experience financial stress in their organizations. Demographic differences in the financial challenges of employees could potentially be a source of intergenerational tension or conflict and could affect how financial benefits are tailored to different age groups within the workplace.

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

4What do these findings mean for the HR profession?Slide5

SHRM/Elevate: Employee Financial Stress ©SHRM 20145

The State of Employee Financial StressSlide6

Overall Employee Financial Health SHRM/Elevate: Employee Financial Stress ©SHRM 2014

6

Note: n = 383. Respondents who answered “don’t know” were excluded from this analysis. Percentages do not equal 100% due to rounding.

Organizations with greater proportions of hourly employees were more likely to indicate that

their employees’ overall financial health was “fair.”

Organizations

with fewer hourly workers were more likely to rate their

employees’

financial health as

“good.”Slide7

Employee Financial Health Rating: Fair and Good Ratings(by percentage of hourly employees) SHRM/Elevate: Employee Financial Stress ©SHRM 2014

7

Note: Respondents who answered “don’t know” were excluded from this analysis. Slide8

Most Financially Stressed by Age

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

8Note: n = 409. Respondents who answered “don’t know” were excluded from this analysis

. Percentage do not equal 100% due to multiple response options. Slide9

Overall Employee Financial LiteracySHRM/Elevate: Employee Financial Stress ©SHRM 2014

9

Note: n = 391. Respondents who answered “don’t know” were excluded from this analysis.Slide10

Employee Financial Literacy (by percentage of hourly employees)SHRM/Elevate: Employee Financial Stress ©SHRM 2014

10

Note: n = 378 Respondents who answered “don’t know” were excluded from this analysis

. Percentages may not equal 100% due to rounding.

Slide11

SHRM/Elevate: Employee Financial Stress ©SHRM 201411

Financial Stress in the WorkplaceSlide12

Financial Stress and Employee AbsenteeismSHRM/Elevate: Employee Financial Stress ©SHRM 2014

12

Note: n = 352-396. Only respondents who answered “strongly agree” and “agree” are shown. Respondents who answered “don’t know” were excluded from this analysis. Only statistically significant differences are shown.

59%

HR professionals

agree that

employees at their organization have missed work due to transportation

issues in the last year.

37%

HR

professionals agree that employees at their organization have missed work

due to

a financial

emergency in the last year.

Larger organizations are

more likely than

smaller organizations to

agree that their employees have missed work

due to

a financial emergency in the past 12 months

.

500 to 2,499 employees (40%)

1 to 99 employees

(17%)Slide13

Employee Termination Due to Employee Financial IssuesSHRM/Elevate: Employee Financial Stress ©SHRM 2014

13

Note: n = 189. Respondents who answered “”I’m not sure, but I don’t think so,” “I’m not sure, but I believe yes” or “don’t

know” were excluded from this analysis. Slide14

Employees Seeking Assistance from Their EmployerSHRM/Elevate: Employee Financial Stress ©SHRM 2014

14

Note: n = 349-374. Only respondents who answered “strongly agree” and “agree” are shown. Respondents who answered “don’t know” were excluded from this analysis. Only statistically significant differences are shown.

47%

HR professionals

agree that

employees

have approached a manager or supervisor for personal financial advice in the last year.

53%

HR

professionals agree that employees

have approached a representative of the organization asking for a pay advance in the last year.

Larger organizations are

more likely than

smaller organizations to

agree that their employees have

approached a representative asking for a pay advance in the past 12 months.

500 to 2,499 employees (63%)

1 to 99 employees (25%)

100 to 499 employees (34%)Slide15

Organizations Providing Annual Cost-of-Living Raises to Employees to Keep Up with Inflation

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

15Note: n = 416

. Respondents who answered “don’t know” were excluded from this analysis. Slide16

SHRM/Elevate: Employee Financial Stress ©SHRM 201416

Financial Benefits:

Pay Advances and Third-Party Provider Loan ProductsSlide17

Does your organization offer the following financial benefits?SHRM/Elevate: Employee Financial Stress ©SHRM 2014

17

Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents

who answered

“yes” are shown. An asterisk (*) indicates that these data were taken from the SHRM 2014 Employee Benefits Report. Slide18

What impact does offering financial benefits have on the overall ability of employees at your organization to manage their financial difficulties?

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

18Note: Only respondents whose organization offers loan product(s) from a third-party provider and/or pay advances as employee benefits were asked this question. Respondents

who answered “don’t know” were excluded from this analysis

.Slide19

SHRM/Elevate: Employee Financial Stress ©SHRM 201419

Employee Financial Literacy and

Employer-Sponsored Financial ServicesSlide20

Does your organization currently offer the following services to its employees?SHRM/Elevate: Employee Financial Stress ©SHRM 2014

20

Note: n = 398-405. Respondents who answered “don’t know” were excluded from this analysis. Percentages may not equal 100% due to rounding. Slide21

Does your organization currently offer the following services to its employees?SHRM/Elevate: Employee Financial Stress ©SHRM 2014

21

Note: Only statistically significant differences are shown.

Comparisons by organization

sectorPublicly owned for-profit (39%)>

Privately owned for-profit

(17%)

Comparisons by organization sector

Publicly owned for-profit organizations are more likely than privately

owned

for-profit organizations to offer their employees financial literacy training for basic budgeting.Slide22

Does your organization currently offer the following services to its employees?SHRM/Elevate: Employee Financial Stress ©SHRM 2014

22

Note: Only statistically significant differences are shown.

Comparisons by organization

staff size500 to 2,499 employees (32%)>

1 to 99 employees (14%)

Comparisons by organization staff size

Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to offer their employees financial literacy training for basic budgeting.

Comparisons by organization

staff size

2,500 to 24,999 employees (41%)

>

1 to 99 employees (14%)

100 to 499

employees (15%)

Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 499 employees to offer their employees financial literacy training for basic budgeting.Slide23

Does your organization currently offer the following services to its employees?SHRM/Elevate: Employee Financial Stress ©SHRM 2014

23

Note: Only statistically significant differences are shown.

Comparisons by organization

staff size500 to 2,499 employees (54%)>

100 to 499 employees (32%)

Comparisons by organization staff size

Organizations with 500 to 2,499 employees are more likely than organizations with 100 to 499 employees to offer their employees financial literacy training for investing.Slide24

SHRM/Elevate: Employee Financial Stress ©SHRM 201424

DemographicsSlide25

Approximately what percentage of your organization’s employees are paid hourly? SHRM/Elevate: Employee Financial Stress ©SHRM 2014

25

Note: n = 395. Respondents who answered “don’t know” were excluded from this analysis

. Percentages do not equal 100% due to rounding. Slide26

Demographics: Organization IndustrySHRM/Elevate: Employee Financial Stress ©SHRM 2014

26

Note: n = 396. Percentages do not equal 100% due to multiple response options.

Percentage

Manufacturing25%

Professional, scientific and technical services

20%

Health care and social assistance

11%

Finance and insurance

9%

Educational services

9%

Government agencies

6%

Administrative and support and waste management and remediation services

5%

Retail trade

5%

Transportation and warehousing

5%

Information

5%

Accommodation and food services

4%Slide27

Demographics: Organization Industry (continued)SHRM/Elevate: Employee Financial Stress ©SHRM 2014

27

Note: n = 396. Percentages do not equal 100% due to multiple response options.

Percentage

Construction4%

Repair and maintenance

3%

Utilities

3%

Wholesale trade

3%

Real estate and rental and leasing

3%

Religious, grant-making, civic, professional and similar organizations

3%

Mining, quarrying, and oil and gas extraction

3%

Arts, entertainment, and recreation

2%

Agriculture, forestry, fishing and hunting

2%

Personal and laundry services

1%

Other industry

4%Slide28

Demographics: Organization SectorSHRM/Elevate: Employee Financial Stress ©SHRM 2014

28

Note: n = 391. Percentages do not equal 100% due to rounding. Slide29

Demographics: Organization Staff SizeSHRM/Elevate: Employee Financial Stress ©SHRM 2014

29

Note: n = 388. Percentages do not equal 100% due to rounding. Slide30

n = 408

Demographics: Other

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

30

U.S.-based operations only72%Multinational

operations

28%

Single-unit organization: An organization in which the location and the organization are one and the same.

27%

Multi-unit organization: An organization that has more than one location.

73%

Multi-unit headquarters determines HR policies and practices.

58%

Each work location determines HR policies and practices.

4%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices.

38%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or

by both

?

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

n = 406

n = 308

Corporate (companywide)

69%

Business unit/division

16%

Facility/location

15%

n = 309

What is the HR

department/function for which you responded

throughout this survey?Slide31

31SHRM Survey Findings: Employee Financial Stress

Response rate = 14%

419 HR professionals from a randomly selected sample of SHRM’s membership participated in this surveyMargin of error +/-5%Survey fielded May 9-June 2, 2014

In collaboration with and commissioned by

Survey MethodologySHRM/Elevate: Employee Financial Stress ©SHRM 2014Slide32

For more survey/poll findings, visit shrm.org/surveysFor more information about SHRM’s Customized Research Services, visit

shrm.org/customizedresearchFollow us on Twitter

@SHRM_ResearchSHRM/Elevate: Employee Financial Stress ©SHRM 2014

32

About SHRM ResearchSlide33

Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at

shrm.org.

SHRM/Elevate: Employee Financial Stress ©SHRM 2014

33

About SHRMSlide34

Elevate’s innovative online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company’s products are more responsible and transparent and

cost less than the alternatives available to the millions of consumers not well served by traditional credit 

providers. Elevate is committed to rewarding borrowers’ good financial behavior with features like lower interest rates, free financial training and free credit monitoring. 

The

company’s suite of groundbreaking credit products includes RISE, Sunny and Elastic. Elevate is privately held and is backed by respected Silicon Valley venture capital firms including Sequoia Capital and Technology Crossover Ventures. SHRM/Elevate: Employee Financial Stress ©SHRM 201434About Elevate