Financial wellness still has room for improvement, younger workers say

Employers have room for improvement when it comes to establishing workplace wellness programs — at least that’s what the younger folks in the office are saying.  

According to the Young Adults and Workplace Wellness Survey released Tuesday by Georgetown University in partnership with Bank of America, only 24% of young adults strongly agree that their employer has policies or structures in place to support work-life balance. The study also shows that the percentage of young employees who rate their workplace wellness programs as “good” or “very good” is highest among those who indicate the availability of flexible work schedules.  

The report also cited their lack of optimism about retirement, with 44% of young adults indicating they have student loans or consumer debt, and 49% of those with outstanding debt say that paying off the debt is a higher priority than saving for retirement.   

The Young Adults and Workplace Wellness Survey examines attitudes and priorities of 1,032 working-age Gen Zers and younger millennials (ages 24-35) as these young adults return to the office.

“In the post-pandemic era for the workplace — with people returning to the office, hybrid work environments, and desires for greater work-life balance — employers need to adapt quickly. To be an ‘employer of choice’ to attract and retain young adult workers, employers need to take greater responsibility for their employees’ overall wellness by offering new benefits and encouraging utilization of existing benefits,” said Kevin Crain, head of retirement research & insights at Bank of America in a statement.

Elsewhere, the study highlighted younger employees' weak ties to their workplaces. For example, the study showed 68% view their work mainly as a way to “make a living but not as a major part of their identity or personal fulfillment.” Meanwhile, 54% of respondents said they plan to switch to another field or career, and 46% indicated they definitely or probably will look to change jobs or fields in the next year. 

Josh Harris, wealth manager at Coldstream Wealth Management, said that careers are just one part of experiencing life’s journey and pointed out that any employee who has been part of a sports team knows that when everyone is feeling good, they perform better. 

“At Coldstream if we can help encourage our employees to engage in activities that make them feel great, there’s a better chance they stick around, work harder and enjoy the experience much more,” Harris said.

As an example, Harris cites his firm’s "May Bike to Work Month" which had more 100 participants riding, walking and running, and posting their progress for everyone to see. 

“It’s a total blast and something we look forward to each year,” he said.

SUMMERTIME BLUES

While the study from Georgetown and Bank of America showed that younger employees are seeking increased wellness — financial and otherwise — inside the office, a new survey from MassMutual shows their anxieties are affecting them outside the workplace as well.

MassMutual’s Consumer Spending & Saving Index released this week revealed that 36% of Americans don't plan to travel this summer as a result of financial constraints, with millennials leading the pack of those being forced to stay home (40%).

“Even though younger generations have more years to recover from financial stressors, they are anxious about inflationary pressures and interest rate hikes,” Paul LaPiana, head of brand, product and affiliated distribution at MassMutual, said in a statement.

On a positive note, LaPiana added that younger workers can now “take steps now to better secure their financial futures: commit to saving, spend responsibly, consider increasing contributions to retirement accounts whenever possible, and educate themselves about risk tolerance when it comes to investment portfolios.” 

Aside from their summer plans, the economy also weighs heavily on the minds of younger employees. The study said the impact of inflation (88%) and a potential recession (81%) remain the most pressing fears for Americans, with a third of young Americans feeling unprepared to manage their finances (33% of Gen Zers and 36% of millennials). 

Those economic worries are also crimping spending plans for Americans across the generational divide. The study showed only a quarter of Americans with children are sending their kids to a summer program this year (25%). Of the families not enrolling their kids in a summer program, more than a third blamed the steeper expense on inflation (38%). 

And as for that extravagant June wedding? Well, that might be forsaken this summer as well. According to the study, 45% of Americans plan to spend no money at all on weddings this year and among those that plan to spend money, 48% plan to spend less than $500. 

Christian Nwasike, principal at Practice Management Consultants and board chair of the Association of African American Financial Advisors, says evaluating benefit programs through these types of surveys or conducting focus groups can help companies tailor their offerings efficiently toward addressing the challenges faced by young workers, especially those of color.

“We believe this will ultimately increase participation rates in benefit programs offered by employers," Nwasike said. Additionally, leveraging listening circles in formats such as seminars or workshops where AAAA facilitates financial wellness conversations for young workers of color could also aid in increasing participation numbers of young workers of color in available retirement plans and other benefits provided by employers which ultimately helps in bridging participation gaps.”