1. SHRM Survey Findings:
Financial Wellness in the Workplace
Sponsored by McGraw-Hill Federal Credit Union
May 14, 2014

2. Definitions
• Financial education: Any workplace initiative, program or resource designed to provide
employees with information on how to manage their resources effectively for a lifetime of financial
well-being.
• Employee Generations
» Traditionalists: born before 1946; 69 years of age or older.
» Baby Boomers: born between 1946 and 1964; 50 to 68 years of age.
» Generation X: born between 1965 and 1980; 34 to 49 years of age.
» Millennials: born after 1980; 33 years of age or younger.
2Financial Wellness in the Workplace ©SHRM 2014

3. Key Findings
• What are the most common financial challenges faced by employees? According to 42% of HR
professionals, medical expenses are the most common personal financial challenge affecting
employees. As of December 2013/January 2014, this number increased seven percentage points
compared with 2011. Furthermore, 41% of HR professionals reported that an overall lack of monetary
funds to cover personal expenses affected employees at their organization.
• Do personal financial challenges affect overall employee performance? Seven out of 10 HR
professionals indicated that personal financial challenges have a “large” or “some” impact on overall
employee performance. Of these HR professionals, approximately one-half reported that employees’
stress (50%) and their ability to focus on work (47%) were the aspects of employee performance that
were most negatively affected by personal financial challenges.
• Are employees currently faced with more personal financial challenges than before? Thirty-
eight percent of HR professionals reported that their employees have more personal financial
challenges now compared with the early part of the Recession in late 2007, while 23% of HR
professionals said their employees are experiencing more personal financial challenges compared
with 12 months ago.
• Are employees more likely to request a defined contribution savings plan loan or hardship
withdrawal now than before? Almost two-thirds of HR professionals (62%) agreed or strongly
agreed that employees have been more likely to request a defined contribution plan loan over the
past 12 months compared with previous years, whereas 44% agreed or strongly agreed that
employees have been more likely to request a defined contribution savings plan hardship withdrawal.3Financial Wellness in the Workplace ©SHRM 2014

4. Key Findings (continued)
• Are organizations providing financial education to their employees? Nearly three-fifths of
organizations (57%) provide some kind of financial education to their employees. Nonprofit
organizations are more likely than privately owned for-profit organizations to offer this benefit to their
employees.
• What challenges do organizations that provide financial education face? One-quarter of
organizations reported facing obstacles in providing financial education for their employees. The
greatest challenges among organizations that offer financial education to their employees are the cost
(33%) and the lack of interest among staff (28%).
• What type of financial education do organizations provide to their employees? The most common
types of financial educations organizations offer to their employees are retirement planning
(79%), financial counseling/resources through an employee assistance program (75%) and financial
investment planning (56%).
• Which generations are most likely to take advantage of financial education benefits? HR
professionals indicated that Baby Boomers (70%) and Generation X employees (53%) are the
generations most likely to participate in financial education programs. Furthermore, Baby Boomers are
most interested in retirement planning (77%), and Generation X in financial investment planning (44%).
• What are the biggest obstacles that prevent organizations from offering financial education to
their employees? The most common concerns for organization that do not currently offer financial
education to their employees are the cost (24%) and the lack of staff resources to pursue offering
financial education (22%).
4Financial Wellness in the Workplace ©SHRM 2014

5. • Even in an improving economy, many workers continue to struggle with their finances. This
research shows that nearly two out of five workers are having a harder time with money now
compared with the onset of the Great Recession in 2007. Knowing this, organizations should
consider offering some type of financial counseling program for their employees.
• Other SHRM research has shown that most employers do not leverage their benefits programs as a
retention/recruitment tool; less than one-fifth (18%) use their benefits program as a retention tool
and about one-quarter (26%) as a recruitment tool).* However, organizations that do leverage these
benefits frequently cite their retirement savings and planning benefits as a means of keeping or
attracting workers (57% of HR professionals who leverage benefits programs use retirement
savings and planning benefits for retention, and 70% of HR professionals use them for recruitment).
• When developing a formal financial and/or retirement counseling program, HR professionals should
tailor that benefit for different generations in the workplace. Baby Boomers and members of
Generation X are most likely to participate in a financial education program at work. But younger
workers, such as Millennials, represent a fast-growing segment of the labor force, and other
research has shown that they value an assortment of retirement options and other types of financial
planning they receive through their jobs.
What do these findings mean for HR professionals?
5Financial Wellness in the Workplace ©SHRM 2014
*Source: Society for Human Resource Management (2013, December). 2013 State of Employee Benefits in the Workplace Series. Retrieved from
http://www.shrm.org/Research/SurveyFindings/Articles/ Pages/2013StateofBenefits-BenefitstoRecruit.aspx.

6. The Impact of Financial Challenges
on the Workplace
6Financial Wellness in the Workplace ©SHRM 2014

7. In the past 12 months, which of the following personal financial
challenges have affected employees at your organization the most?
42%
41%
31%
25%
16%
15%
13%
7%
5%
4%
2%
2%
35%
49%
26%
22%
22%
12%
9%
8%
4%
4%
Medical expenses
Overall lack of monetary funds to cover their personal
expenses
Saving for retirement
Credit card debt
Child care expenses*
Home mortgage payments
Education expenses
Home rental payments
Other debt
Elder care expenses*
Bankruptcy
Other
2014 (n = 401)
2011 (n = 459)
Note: Respondents who answered “Not sure” were excluded from this analysis. Percentages may not equal 100% due to multiple response options. An
asterisk (*) indicates that the response option was not offered in 2011.
7Financial Wellness in the Workplace ©SHRM 2014

8. How much of an impact do employees’ personal financial challenges
have on employees’ work performance?
15%
55%
26%
4%
22%
61%
16%
2%
A large impact
Some impact
A slight impact
No impact at all
2014 (n = 351)
2011 (n = 424)
Note: Respondents who answered “Not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding.
8Financial Wellness in the Workplace ©SHRM 2014

9. What aspects of overall employee work performance are MOST
negatively affected when employees face personal financial challenges?
50%
47%
29%
26%
15%
15%
7%
6%
0%
46%
47%
26%
24%
20%
12%
7%
1%
Overall employee stress
Ability of employees to focus on
work
Overall employee productivity
Employee absenteeism/tardiness
Employee engagement*
Overall employee morale
Overall employee health
Working relationships with other
employees
Other
2014 (n = 234)
2011 (n = 341)
Note: Only respondents who said that personal financial challenges have “a large impact” or “some impact” on overall employee work performance were
asked this question. Respondents who answered “Not sure” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options. An asterisk (*) indicates that the response option was not offered in 2011.
9Financial Wellness in the Workplace ©SHRM 2014

10. Were employees at your organization faced with more, about the same
or fewer personal financial challenges in December 2013/January 2014
compared with…?
Note: Respondents who answered “Not sure” were excluded from this analysis. * The early part of the Recession refers to late 2007.
38%
23%
46%
68%
16%
9%
The early part of the Recession* (n = 321) 12 months ago (n = 333)
More personal financial challenges
About the same personal financial challenges
Fewer personal financial challenges
10Financial Wellness in the Workplace ©SHRM 2014

11. In the past 12 months, has the amount employees contributed to their
organization-sponsored defined contribution plans
(e.g., 401(k), IRA, etc.) changed compared with previous years?
Note: n = 335. Respondents who answered “Not sure” or “My organization does not offer this benefit” were excluded from this analysis.
24%
54%
22%
Decreased
Stayed the same
Increased
11Financial Wellness in the Workplace ©SHRM 2014

12. In the past 12 months, compared with previous years, employees have
been more likely to request a…
Note: Respondents who answered “Not sure” or “My organization does not offer this benefit” were excluded from this analysis.
9%
15%
35%
47%
46%
32%
10%
5%
Defined contribution savings plan
hardship withdrawal
(n = 269)
Defined contribution plan loan
(n = 263)
Strongly agree Agree Disagree Strongly disagree
12Financial Wellness in the Workplace ©SHRM 2014

13. Employer-Sponsored Financial Education
Resources
13Financial Wellness in the Workplace ©SHRM 2014

14. Does your organization currently provide any kind of financial education
to your employees?
Note: Respondents who answered “Not sure” were excluded from this analysis.
57%
43%
52%
48%
64%
36%
Yes
No
2014 (n = 362)
2011 (n = 435)
2009 (n = 401)
Of those organizations that
do not currently provide
financial education, 21% plan
to do so in the next 12
14Financial Wellness in the Workplace ©SHRM 2014

15. Does your organization currently provide any kind of financial education
to your employees?
Note: Only statistically significant differences are shown.
Comparisons by organization sector
Nonprofit (71%) > Privately owned for-profit (50%)
Comparisons by organization sector
• Nonprofit organizations are more likely than privately owned for-profit organizations to provide any kind of financial
education to their employees.
15Financial Wellness in the Workplace ©SHRM 2014

16. What type of financial education do organizations provide to
employees?
79%
75%
56%
40%
26%
25%
24%
11%
7%
3%
Retirement planning
Access to an Employee Assistance
Program (EAP)*
Financial investment planning
Medical/health care costs planning
General budgeting advice
Privacy, security and fraud
protection
Education planning
Credit restoration/repair resources
Home buying seminars
Other
Note: n = 208. Only respondents whose organizations offered financial education were asked this question. Percentages do not equal 100% due to
multiple response options. An asterisk (*) indicates that the EAP includes financial counseling/resources.
16Financial Wellness in the Workplace ©SHRM 2014

17. How do organizations provide financial education to employees?
2014
(n = 208)
2011
(n = 219)
2009
(n = 256)
Seminars during work hours using outside speakers* 61% 60% 57%
Paper resources (e.g., pamphlets, handouts) 51% - -
New-hire employee orientation 44% 44% 47%
Self-directed e-learning 37% - -
Intranet* 36% 40% 42%
Seminars during work hours lead by trained in-house staff* 25% 17% 31%
In-house newsletter 23% 25% 30%
Seminars outside of work hours* 20% 22% 15%
Employee assistance program (EAP)** 5% - -
Mandatory seminars/training - 11% 17%
Other 6% 9% 2%
Note: Only respondents whose organizations offered financial education were asked this question. Percentages may not equal 100% due to multiple
response options. A dash (-) indicates that the response was not asked that specific year. An asterisk (*) indicates that the response option was modified
from previous years. A double asterisk (**) indicates that the response option was developed from open-ended responses.
17Financial Wellness in the Workplace ©SHRM 2014

18. In the past 12 months, has your organization seen an increased demand
for financial education from employees?
32%
68%
37%
63%
35%
65%
Yes
No
2014 (n = 171)
2011 (n = 154)
2009 (n = 195)
Note: Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure” were
excluded from this analysis.
18Financial Wellness in the Workplace ©SHRM 2014

19. In 2013, have the financial education offerings at your organization
changed compared with 2012?
Note: n = 195. Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure”
were excluded from this analysis. Percentages do not equal 100% due to rounding.
27%
73%
1%
Increased
Stayed the same
Decreased
19Financial Wellness in the Workplace ©SHRM 2014

20. For your 2014 budget, will you request more, about the same or fewer
funds for financial education than in previous years?
Note: n = 164. Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure” or
“No funds for financial education in 2014” were excluded from this analysis.
6%
88%
6%
More funds
About the same
funds
Fewer funds
20Financial Wellness in the Workplace ©SHRM 2014

21. Which generations are most likely to participate in the financial
education offerings at your organization?
Note: n = 208. Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure”
were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
10%
70%
53%
15%
Traditionalists
Baby Boomers
Generation X
Millennials
21Financial Wellness in the Workplace ©SHRM 2014

22. What financial education topic is most important to each generation?
Note: Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure” were
excluded from this analysis. Percentages may not equal 100% due to rounding. Respondents were asked to select one financial education topic for the
generation that was most likely to participate. Data are sorted by the “Baby Boomers” column. Results on “Traditionalists” are not included due to a
small sample size (n=20).
Baby Boomers
(n = 144)
Generation X
(n = 105)
Millennials
(n = 29)
Retirement planning 77% 20% 14%
Medical/health care costs planning 9% 7% 10%
Financial investment planning 9% 44% 31%
General budgeting advice 1% 12% 24%
Credit restoration/repair resources 1% 9% 7%
Home buying seminars 1% 4% 3%
Privacy, security and fraud
protection
1% 1% 3%
Education planning 0% 4% 0%
Other 0% 0% 7%
22Financial Wellness in the Workplace ©SHRM 2014

23. Has your organization conducted a needs assessment (including
surveys, focus groups, etc.) to determine what topics or delivery
methods of financial education would be most beneficial to your
employees?
16%
84%
10%
90%
12%
88%
Yes
No
2014 (n = 197)
2011 (n = 214)
2009 (n = 253)
Note: Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure” were
excluded from this analysis.
23Financial Wellness in the Workplace ©SHRM 2014

24. Overall, how effective has your organization’s financial education
initiative been in improving your employees’ financial wellness?
Note: n = 143. Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure”
were excluded from this analysis.
6%
66%
19%
9%
Very effective
Somewhat effective
Somewhat ineffective
Very ineffective
24Financial Wellness in the Workplace ©SHRM 2014

25. Has your organization’s financial education initiatives faced any
obstacles?
25%
75%
21%
79%
33%
67%
Yes
No
2014 (n = 167)
2011 (n = 215)
2009 (n = 256)
Note: Only respondents whose organizations offered financial education were asked this question. Respondents who answered “Not sure” were
excluded from this analysis.
25Financial Wellness in the Workplace ©SHRM 2014

26. What is the biggest obstacle that your financial education initiatives
face?
Organizations currently
offering financial education
Organizations not currently
offering financial education
2014
(n = 43)
2011
(n = 48)
2009
(n =
171)
2014
(n = 86)
2011
(n =
150)
2009
(n =
132)
Cost of providing financial education 33% 33% 25% 24% 25% 27%
Lack of interest among employees 28% 27% 37% 16% 23% 19%
Lack of staff resources to pursue this
offering*
16% 10% - 22% 0% -
Concern about perceived violation of fiduciary
duty if providers of financial education (i.e.,
outside providers) are not objective*
7% 6% 11% 8% 9% 14%
Lack of support from organization’s leaders 5% 8% 11% 15% 15% 14%
Not sure how to create or find financial
education resources
2% 4% 8% 2% 14% 7%
Lack of need in the workplace 0% 6% 6% 7% 8% 17%
Other 9% 4% 2% 5% 6% 2%Note: An asterisk (*) indicates that the survey choice was changed from prior survey years. Percentages may not equal 100% due to rounding. A dash (-
) indicates that data are not available. Data are sorted by “Organizations currently offering financial education” in 2014.
26Financial Wellness in the Workplace ©SHRM 2014

27. Financial Wellness in the Workplace ©SHRM 2014 27
Demographics

28. Demographics: Employee Generations in Respondents’ Workplace
5%
20%
60%
45%
1%
Employees are more or
less equally distributed
across all generations
Millennials
Generation X
Baby Boomers
Traditionalists
Note: n = 361. Percentages may not equal 100% due to multiple response options. Respondents were asked to select up to two generations that
primarily represented their workforce. Respondents who answered “Not sure” were excluded from this analysis.
28Financial Wellness in the Workplace ©SHRM 2014

29. Demographics: Employee Gender in Respondents’ Workplace
25%
39%
36%
Mostly male
employees
More or less equally
distributed between
male and female
employees
Mostly female
employees
Note: n = 346. Respondents who answered “Not sure” were excluded from this analysis.
29Financial Wellness in the Workplace ©SHRM 2014

30. Demographics: Organization Industry
30
Percentage
Professional, scientific and technical services 22%
Health care and social assistance 18%
Finance and insurance 14%
Manufacturing 11%
Educational services 10%
Government agencies 10%
Transportation and warehousing 6%
Retail trade 5%
Administrative and support and waste management and remediation services 5%
Accommodation and food services 4%
Religious, grant-making, civic, professional and similar organizations 4%
Note: n = 354. Percentages may not equal 100% due to multiple response options.
Financial Wellness in the Workplace ©SHRM 2014

31. Demographics: Organization Industry (continued)
31
Percentage
Utilities 3%
Information, publishing industries 3%
Wholesale trade 3%
Construction 2%
Arts, entertainment and recreation 2%
Real estate and rental and leasing 1%
Repair and maintenance 1%
Mining 1%
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services 0%
Other 5%
Note: n = 354. Percentages may not equal 100% due to multiple response options.
Financial Wellness in the Workplace ©SHRM 2014

32. Demographics: Organization Sector
3%
11%
14%
23%
48%
Other
Government sector
Publicly owned for-profit
organization
Nonprofit organization
Privately owned for-profit
organization
Note: n = 353. Percentages do not equal 100% due to rounding.
32Financial Wellness in the Workplace ©SHRM 2014

33. Demographics: Organization Staff Size
Note: n = 345. Percentages do not equal 100% due to rounding.
4%
9%
22%
41%
23%
25,000 or more employees
2,500 to 24,999 employees
500 to 2,499 employees
100 to 499 employees
1 to 99 employees
33Financial Wellness in the Workplace ©SHRM 2014

34. Demographics: Other
Does your organization have U.S.-
based operations (business units)
only, or does it operate
multinationally?
U.S.-based operations only 83%
Multinational operations 17%
n = 359
Is your organization a single-unit company or a
multi-unit company?
Single-unit company: A company in which
the location and the company are one and
the same
36%
Multi-unit company: A company that has
more than one location
64%
n = 358
Are HR policies and practices determined by the
multi-unit corporate headquarters, by each work
location or both?
Multi-unit headquarters determines HR
policies and practices
65%
Each work location determines HR policies
and practices
1%
A combination of both the work location and
the multi-unit headquarters determine HR
policies and practices
35%
Note: n = 234. Percentages do not equal 100% due to rounding.
What is the HR department/function for
which you responded throughout this
survey?
Corporate (companywide) 81%
Business unit/division 13%
Facility/location 6%
n = 232
34Financial Wellness in the Workplace ©SHRM 2014

35. SHRM Survey Findings: Financial Wellness in the
Workplace
• Response rate = 14%
• Sample composed of 401 randomly selected HR professionals with the title of assistant director or
above from SHRM’s membership
• Margin of error = +/- 5%
• Survey fielded December 17, 2013 – January 27, 2014
Sponsored by McGraw-Hill Federal Credit Union
Survey Methodology
35Financial Wellness in the Workplace ©SHRM 2014

36. • Retirement Plans Resource Page
• Retirement and Financial Planning Articles
• Defined Contribution Plans Resource Page
• Defined Contribution: Loans and Withdrawals
• Defined Contribution: Education and Advice
Additional SHRM Resources
36Financial Wellness in the Workplace ©SHRM 2014

37. For more survey/poll findings, visit shrm.org/surveys.
For more information about SHRM’s Customized Research Services, visit
shrm.org/customizedresearch.
Follow us on Twitter @SHRM_Research.
About SHRM Research
Project leader:
Christina Lee, researcher, SHRM Research
Project contributors:
Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, director, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
37Financial Wellness in the Workplace ©SHRM 2014

38. Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR
membership organization devoted to human resource management. Representing more than 275,000
members in over 160 countries, the Society is the leading provider of resources to serve the needs of
HR professionals and advance the professional practice of human resource management. SHRM has
more than 575 affiliated chapters within the United States and subsidiary offices in China, India and
United Arab Emirates. Visit us at shrm.org.
About SHRM
38Financial Wellness in the Workplace ©SHRM 2014