ZayZoon, a leading Earned Wage Access (EWA) provider for small and mid-sized businesses, has released its annual State of Employee Financial Wellness report. This report, based on a survey of 5,000 employees and 500 HR professionals across the U.S., sheds light on the significant impact of financial stress on employee performance and organizational success.
- Prevalence of Financial Stress:
- 50% of employees experience financial stress daily.
- Financial stress negatively impacts focus, morale, and work quality.
- 52% of employees report daily or multiple times per day stress about finances.
- Serious Financial Situations:
- Over 61% of HR professionals observe employees living paycheck to paycheck.
- Common issues include eviction, medical costs, wage garnishment, and bankruptcy.
- Common Stressors:
- Key financial concerns: paying bills (40%), rent/mortgage (17.6%), and groceries (16.8%).
- 80% of employers acknowledge that financial stress affects employee morale and mental health.
- Savings and Credit Challenges:
- 58% of employees lack savings for unexpected expenses.
- 71% have poor to fair credit scores.
- Nearly 30% of employees have a negative balance each month after covering essential expenses.
- What is Earned Wage Access?
- EWA allows employees to access a portion of their earned wages before payday.
- Provides a critical resource to avoid reliance on payday loans and overdraft fees.
- Impact of EWA:
- Nearly 47% of HR professionals report increased operational efficiency with EWA.
- Highlights the importance of comprehensive financial wellness programs in reducing financial stress and enhancing productivity.
The ZayZoon report underscores that financial stress is a pressing issue affecting both individuals and businesses. With significant portions of employees facing daily financial challenges, implementing solutions like Earned Wage Access can alleviate stress, improve productivity, and support overall employee financial wellness. As financial stress continues to impact workplaces, prioritizing employee financial health becomes crucial for organizational success.
