Embrace the “Lifestyle Contract,” Employers
Employee needs are changing significantly as their financial positions worsen. Only the businesses and organizations who adapt to meet them will succeed in the years ahead according to the latest Inside Employees’ Minds report from Mercer.
The “financial concerns of employees reign supreme this year” according to the latest “Inside Employees’ Minds” report from consulting firm Mercer.
Three out of four employees (75%) say decades-high inflation and market volatility this year has significantly increased their financial stress.
Employee Needs are Changing, Significantly
Employee needs are changing significantly as their financial positions worsen: “Covering monthly expenses” went from the ninth rated concern of employees in 2021 to the top concern in 2022; the ability to retire jumped from five to two; overall, six of the top 10 concerns shifted three or more positions.
Only the businesses and organizations who adapt to meet these changing needs will succeed in the years ahead, which Mercer defines as a new chapter of relation between employers and employees known as the “lifestyle contract.”
Embrace the Lifestyle Contract
Employers who embrace the lifestyle contract will be rewarded with the fruits of a financially healthy workforce: “…if you holistically and empathetically look after people’s financial security, safety, and well-being needs, you’ll be rewarded with loyalty, commitment, and retention when you need it most.”
In this new chapter, employees are “more focused on securing their financial, physical, and emotional health and well-being” than on “achievement and climbing the ladder.” Indeed, half of employees say they are simply exhausted on a typical day, per the report.
So what are U.S. businesses and organizations to do about exhausted, financially stressed, workers?
Focus on Financial Health, “Financial Coaching and Advice”
Mercer offers six recommendations to meet employees’ most pressing needs. Checking in at number three: “Focus on financial health” by enhancing financial well-being support for employees across a spectrum of financial needs, with “financial coaching and advice” as the foundation.
Smart employers understand the connections among financial health and productivity, stress and mental health, employees who feel valued and benefits that meet their near- and long-term needs, retention and recruiting.
They understand that Mercer finds significant declines in employee satisfaction across the board, most noticeably in compensation, benefits, and career goals, while “employee commitment to the company saw an eight-point drop since last year.”
And they know that by offering Personal Finance Coaching they can differentiate themselves as one who invests in their employees’ financial health.
Schedule a time to speak with financial health and productivity expert Milly DuBouchet about how TrustPlus can help your business or organization capture the benefits of a financially healthy workforce.