Bank of America Study Finds 84% of Employers Now Say Offering Financial Wellness Tools Helps Increase Employee Retention
97% of employers feel responsible for employee financial wellness, with 91% seeing higher employee satisfaction when offering resources to manage overall wellbeing
Bank of America today announced findings from its 12th annual Workplace Benefits Report, “Navigating a New Era of Financial Wellness.” The report revealed that 84% of employers now say that offering financial wellness tools can help reduce employee attrition, and 81% say wellness tools help attract higher quality employees. This is critical to employers, as 46% have seen an increase in resignations over the past year. In addition, approximately one in three employees have switched jobs or thought about switching jobs in the past year.
The report also explored the impact of the current economic and inflationary environment on employees’ financial wellness, revealing that 62% of employees are stressed about their finances. In addition, 80% of employees are concerned about inflation, and 71% feel the cost of living is outpacing growth in their salary or wages. This is having an impact on employees overall feeling of financial wellness. After the percentage of employees who feel financially well bounced above pre-pandemic levels in February 2022 (57% .vs 55% in 2019), the percentage dropped to a 5-year low of 44% in July 2022.
“Offering comprehensive benefits and wellness programs can be critical for employers looking to reduce attrition, can empower employees to take control of their personal finances, and improve employee satisfaction,” said Lorna Sabbia, Head of Retirement and Personal Wealth Solutions at Bank of America. “We are committed to partnering with employers to provide financial wellness solutions through a holistic and integrated approach that’s actionable for every employee.”
Based on a nationwide survey of 824 employees and 846 employers conducted in February, and a second survey of 478 employees conducted in July, the Workplace Benefits Report examines trends related to workplace financial benefits and wellness programs.
In response to increased stress about financial wellness, employers continue to embrace programs to expand support for their employees. For example, 91% of employers see higher employee satisfaction when they offer resources to manage overall wellbeing. Other top employer findings include:
Employees express uncertainty about current economic conditions and are taking actions to relieve financial strain:
Employees continue to show differences in financial wellness when viewed by gender, ethnicity or generation. Though the financial wellness gap has closed for women, it has expanded for minorities since February. Top findings include:
Bank of America’s Retirement & Personal Wealth Solutions organization serves more than 26,000 companies of all sizes and more than 5.9 million employees as of December 31, 20211. Bank of America offers institutional client employees a range of financial benefit programs and solutions to help them pursue their financial future.
More findings, including action steps for employers, are available in the Bank of America 2022 Workplace Benefits Report.
Escalent surveyed a national sample of 834 employees who are working full-time and participate in 401(k) plans, and 846 employers who offer both a 401(k) plan and have sole or shared responsibility for decisions made in the plan. The survey was conducted between February 3, 2022 and February 28, 2022. To qualify for the survey, employees had to be current participants of a 401(k) plan and employers had to offer a 401(k) plan option. Neither was required to work with Bank of America. Bank of America was not identified as the sponsor of the study. Bank of America Retirement & Personal Wealth Solutions help employers and employees to take action and work toward their financial goals today and into retirement.
Escalent surveyed a national sample of 478 employees who are working full-time and participate in 401(k) plans. The survey was conducted between July 5, 2022 and July 19, 2022. To qualify for the survey, employees had to be current participants of a 401(k) plan. They weren’t required to work with Bank of America. Bank of America was not identified as the sponsor of the study. Bank of America Retirement and Personal Wealth Solutions help employers and employees to take action and work toward their financial goals today and into retirement.
At Bank of America, we know that supporting the physical, financial and emotional wellbeing of our employees in their personal life also supports them in their work life — so they can be the best at work and at home. When it comes to financial wellness, we believe that the more informed people are about their money, the clearer their financial outlook can be. This applies not just to our clients, but to our employees, as well. This is why we offer robust financial offerings to our employees that focus on driving better behaviors across life priorities and the financial spectrum — budgeting, planning, saving, investing and more. Our competitive financial benefits – including 401(k) plans that include a company match, retirement advice2, health savings accounts3, banking4 and investing5 programs, educational resources and financial wellness tools – help employees address money issues in the here-and-now, prepare for retirement and help protect their family over the long term.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (ATMs) is listed on the New York Stock Exchange.
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Retirement and Personal Wealth Solutions is the institutional retirement business of Bank of America Corporation (“BofA Corp.”) operating under the name “Bank of America.” Investment advisory and brokerage services are provided by wholly owned non-bank affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”), a dually registered broker-dealer and investment adviser and Member SIPC. Banking activities may be performed by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A., Member FDIC.
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1 Source: Global Wealth and Investment Management Finance.
2 Investment advice on 401(k) assets is only provided to plan participants through certain investment advisory programs as directed by plan sponsors.
3 Made available through Bank of America, N.A.
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5 Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.
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