Financial Finesse Releases Two Reports Advancing the Industry’s Understanding of Financial Wellness Disparities in the Workplace
EL SEGUNDO, California, May 25, 2021 / PRNewswire / – Financial Finesse, the leading independent provider of financial wellness services in the workplace, today released its 2020 Financial Wellness Year in Review (YIR), which highlights employee financial resilience during COVID-19 and an accompanying Race and Financial Stress Special Investigating Report Addressing Racial Disparities in Financial Health. Financial resilience, which the company defines as the ability to recover from an unpredictable financial setback, is one of the most powerful drivers of financial wellbeing.
To better understand financial resilience, Financial Finesse has assigned employees to one of four groups – financially resilient, vulnerable, determined, and vulnerable – based on the presence or absence of an emergency fund before and during 2020. The analysis found:
- Financial resilience is difficult (and achievable): 94 percent of employees who had an emergency fund before 2020 kept it, and 26 percent of employees who needed an emergency fund acquired one in 2020.
- Cash flow and debt management are king: Employees who have cash flow and an emergency fund under control are 17 times more likely to report “no” financial stress and 4.5 times more likely to report their debts than employees with none.
- Minorities and women made great strides: black, Spanish and female employees, as well as those with lower HHIs ($ 60,000) had the highest net improvement in financial resilience.
- There are still significant differences: for example, black single mothers are seven times more likely to have high or overwhelming financial burdens than married Asian fathers.
“The impact of cash flow and debt on financial resilience is beyond dispute,” said Liz Davidson, founder and CEO of Financial Finesse. “For employers looking to improve financial well-being in their business and focus on those who need help most, integrating a holistic financial wellness benefit designed to address proven determinants of financial resilience with personalized and ongoing coaching approach a more effective ROI -positive way of doing business. “
Craig CopelandThe Senior Research Analyst at the Employee Benefit Research Institute (EBRI) said, “Debt is one of the largest factors influencing workers’ expectations of retirement and their ability to save or prepare for retirement.” According to the EBRI Retirement Confidence Survey, workers who are satisfied with their debts are almost twice as confident about retirement, and 55 percent are more likely to have saved for retirement than workers who view debt as a major problem . He adds, “Controlling debt and focusing on financial resilience during the working years can make all the difference to a financially comfortable retirement.”
Financial Finesse’s Special Report on Racial and Financial Stress takes a deeper look at the economic and financial wealth disparities that exist among ethnic minorities. The results of the report are already being used by Financial Finesse partners to optimize their financial wellness programs. “It is refreshing to see so many organizations commit to filling the racial wealth gap,” he said Laura Finn, the author of the report and a senior consultant at Financial Finesse. She continues, “Understanding and resolving the underlying financial wellness problems is key to bringing us all closer to financial equality.”
“Our reporting shows that employees with an emergency fund and cash flow handle are one-tenth the likelihood of facing unmanageable financial burdens,” he says Greg Ward, CFP® and Director of the Financial Finesse Financial Wellness Think Tanks ™. “Historically, women, African American and Hispanic employees, and single parents have reported the highest financial burdens. This suggests that targeted exposure to stressed populations should focus on cash flow and savings for maximum stress reduction.” Davidson adds, “By making a commitment to helping employees reduce financial burdens, employers are improving their competitiveness, especially in tight labor markets such as we are currently experiencing. In the battle for talent, corporate culture is a critical factor.”
For more informations:
Download the full “Financial Wellness Year in Review 2020” here.
Download the full Race and Financial Stress Special Report here.
About Financial Finesse:
Financial Finesse is the nation’s leading independent provider of unbiased financial wellness programs in the workplace. Since 1999, the company has helped more than 10,000 companies improve their bottom line and become more competitive by empowering their employees to achieve financial security. The company’s award-winning financial wellness programs are made available to employees free of charge as an employer-sponsored benefit. With highly personalized and ongoing one-to-one coaching from CFP® experts, virtual coaching with AI support, live workshops, webcasts, teaching materials and content, Financial Finesse reaches over 2.4 million people every year. www.financialfinesse.com
Contact: Maggie Weinberg, Financial finesse
E-mail: [email protected]
SOURCE Financial finesse