BofA Survey Finds Many American Workers Optimistic About Their Financial Future, Though Feeling the Strain of Inflation
CHARLOTTE, N.C. – Bank of America today announced findings from its 13th annual Workplace Benefits Report, “The Transforming Workplace” (PDF) The report revealed that two-thirds (67%) of employees believe the cost of living is outpacing growth in their salary or wages, compared to 58% in February 2022. Over the last year, the impact of inflation and economic uncertainty has contributed to increased financial stress and to financial wellness among employees dropping to 42%, the lowest rate since this research began in 2010. Despite which, more than half (56%) of employees remain cautiously optimistic about their financial well-being over the next 2 to 3 years.
First launched in 2011, the annual Workplace Benefits Report examines trends related to workplace financial benefits and wellness programs. Based on nationwide surveys of more than 1,300 employees and nearly 800 employers conducted during the first half of this year, the 2023 Report unveiled trends across employee retirement preparedness and financial well-being, the impact of caregiving on the workforce, and the state of the workplace.
“American workers continue to feel stressed about their finances and are concerned about keeping up with the cost of living,” said Lorna Sabbia, Head of Retirement and Personal Wealth Solutions at Bank of America. “Companies who show a sense of urgency for their workforce by offering financial wellness programs and resources which support employees’ immediate needs and overall well-being will continue to stand out as employers’ of choice.”
Employees continue to look for support from their employers, with most employees (76%) and employers (96%) agreeing that employers are responsible for employee financial wellness. However, only 2 in 5 employers currently offer financial wellness programs. Other emerging trends include:
This year’s report also examined caregiving and its oftentimes hidden impact on the workforce. More than half of employees (56%) identify as caregivers, led by Hispanic/Latinx (70%), Gen Z/Millennials (68%), women (57%) and employees earning less than $40,000 annually (71%). However, employers believe that only 35% of their workforce are caregivers.
Balancing career and caregiving can come with sacrifices for employees, including using vacation time (39%), reducing their hours (16%), quitting a job or leaving the workforce (11%), or turning down a promotion (9%). Additionally, while 89% of employers offer some level of caregiver support, only 41% of employees know that these resources exist, and less than one-third (32%) of working caregivers take advantage of programs or support being offered.
While employers report lower employee attrition rates this year compared to 2022, staffing continues to be a challenge. Nearly one-third of employees (32%) say they switched jobs or considered leaving their company in the past year, with the top reasons including burnout (53%), size of pay increases (44%), and work-life balance (41%).
More than half of employers currently have an in-person work model (55%), followed by hybrid/mix (39%) and fully remote (6%) models. However, in the next three years, more employers plan to shift to hybrid/mix (47%) and remote (17%) models, while fewer (36%) plan to maintain a fully in-person model.
More findings, including actionable steps for employers, are available in the Bank of America 2023 Workplace Benefits Report (PDF)
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 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 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 4 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 more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).
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Don Vecchiarello, Bank of America