Public sector employees struggle financially due to current economic conditions like rising housing costs, inflation, and market volatility, causing significant financial stress. They are worried about retirement, most likely don’t have emergency funds, and have day-to-day expenses they aren’t sure they can pay.
However, public sector employees have been struggling for a while, the COVID-19 pandemic only exacerbated the issues they were facing. According to the 2020 COVID Report by The Center for State and Local Government Excellence, 88% of public sector employees worried about their finances before the COVID-19 pandemic and two-thirds reported worrying about finances at work.
Recently, In a survey by Mission Square Research Center and Greenwald Research, 84% of public sector employees say current economic conditions and market volatility make them anxious about their current financial situation.
Current economic conditions have also affected public sector employees’ retirement savings. according to Mission Square Research, nearly half of state and local public service workers save less than usual for retirement due to high inflation rates and current housing costs.
How Financial Wellness can Serve The Public Sector:
Implementing a financial wellness program may be crucial now more than ever due to the ever-changing economic conditions the US is facing. Financial wellness for the public sector goes beyond concern for employees’ wellbeing. Not only will your employees benefit, but as an employer, you will as well.
Attract and retain employees
Public sector employees are leaving for the private sector. Although the public sector often has good benefits packages, the private sector pays more. To retain employees, the public sector needs to offer a holistic wellness offering, including financial wellness. According to the survey done by Mission Square Research, 62% of public sector employees said they are more inclined to stay at their job if more benefits are available.
Increase employee engagement and productivity
When employees have more distractions in their lives, they are more likely to be less productive at work. PwC says 76% of employees reported that their financial stress had negatively impacted their productivity. Further, 55% of employees who are financially stressed have said it has distracted them for 3 more hours at work dealing with finances.
By incorporating a financial wellness program, your employees will spend less time stressed out on the job and more time doing their best work because they will have resources available to them when they need them when it comes to their finances.
Guidance through the Public Service Loan Forgiveness (PSLF) program
PSLF provides student loan relief to those who work for a government organization (federal, state, or tribal) or a qualifying non-profit. This government-sponsored program allows borrowers of federal student loans to have their loans forgiven in exchange for work in public service. PSLF can be challenging to understand and navigate, which is why YML provides experts to help guide your employees through the process.
Help ensure Employees will retire on time
Due to the current economic climate, one major concern public sector employees have is being able to retire on time. According to Mission Research Center, 81% are worried if they will have enough money to last through retirement, and 72% are worried about whether they will be able to retire on time.
There are several factors at play when planning for retirement. Employers can implement a financial wellness program to boost employees' retirement readiness. A financial wellness program can help employees plan, budget, and save for the future. Your Money Line has tools like our Power Percentage™ tool to lead your employees to financial stability. Read more about how our Financial Guides and our Power Percentage™ tool can help here!
Relieve anxiety surrounding money
It’s no surprise employees in the public sector face anxiety around money. A financial wellness program, like Your Money Line, offers 1:1 personal guidance through our Financial Guides and many tools and resources through our dashboard to relieve anxiety around money. Our Guides help with the everyday problems money causes and help your employees get comfortable where they are while creating plans and goals to get where they want to be.
At Your Money Line, we understand what it’s like to work in the public sector. Recently, former government executive, Jodi Golden, transitioned from the public sector into a new role here at Your Money Line. She’s been there before and understands the salary challenges that local governments face. Check out the press release to read more about Jodi and how we can help!