22 June 2023
A recent survey conducted in the first half of 2023 on behalf of HR Improvement GmbH reveals concerning results: Financial stress among employees is prevalent. The survey shows that many workers struggle with financial challenges. Unexpected expenses and overdrawn accounts are just some of the factors leading to financial difficulties and significant stress.
One alarming finding of the survey was that nearly 30% of employees have already experienced financial stress. This highlights the widespread challenges that workers face regarding their financial situation. Unexpected bills, in particular, contribute to employees experiencing financial stress. An unexpected expense, repair cost, or other unforeseen financial burdens can quickly impact an employee's financial stability and lead to stress.
Furthermore, 38% of the survey participants stated that they have overdrawn their accounts at least once. This indicates that many employees struggle to cover expenses, especially in emergencies. Employers can assist by offering financial education programs to support their employees in budgeting and financial planning. Such an investment in financial education contributes to a positive work environment in the long run.
Another noteworthy result of the survey was that the majority of respondents (88%) would not ask their employer for an advance payment. This could be attributed to the bias that employees who request advances may be perceived as unprofessional or financially unstable. Therefore, employers should openly communicate about the option of wage advances and ensure that employees have no fear of negative consequences.
Although 80% of the surveyed employees stated that they would not request an advance payment from their employer in times of financial hardship, 33% of the participants expressed a desire for wage advances during financial difficulties. This discrepancy suggests that employees may have inhibitions about seeking financial support, even when they need it. Another possible reason is the stigma often associated with financial difficulties. People often hesitate to openly disclose their financial situation, even to their employer.
The survey results highlight the urgent need for employers to address this issue and provide solutions. Offering flexible access to a portion of earned wages could be one solution. By allowing employees to access already earned wages, financial gaps can be avoided or at least mitigated. Such "Earned Wage Access" offerings would provide employees with a sense of security and help reduce financial stress.
Employers should also create an environment of open communication and make employees feel that financial difficulties are not a taboo topic. By fostering a supportive environment, employers can help eliminate stigma and encourage employees to seek help when needed.
Overall, the survey results indicate that financial stress among employees is a widespread problem. Employers play a crucial role in reducing this stress by offering financial education programs and providing flexible wage access options. By taking these measures, employers can foster a positive work environment that enhances employee well-being and productivity.
It is time to address financial stress among employees and find solutions that improve their lives.
paygood was created with the goal of contributing to the financial well-being of all employees and creating social value. This innovative app empowers employers to reduce financial stress among their employees, making it easier for them to overcome financial gaps. Employees can securely and discreetly request a portion of their earned wages at any time through the app. The disbursed amount will then be automatically deducted from their next payroll. Such "Earned Wage Access (EWA)" offerings are already available in many countries within and outside of Europe. Additionally, paygood provides information on financial stability and supports employees in budgeting and financial planning. This makes paygood unique and delivers a social benefit.
HR Improvement GmbH is an innovative HR tech company founded by experienced HR experts in early 2023. Its goal is to help companies make their HR departments more effective and promote the financial stability of their employees. To achieve this, HR Improvement has developed paygood, the first "Earned Wage Access (EWA)" app for the German-speaking market. This novel service solution contributes to the financial well-being of all employees and generates social value. With paygood, employees have access to a portion of their earned wages at any time. The app reduces the financial and mental burdens on employees, thereby enhancing their well-being and commitment.
For more information about paygood and HR Improvement, visit https://paygood.app or https://hr-improvement.de.
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