Employers should take action, says expert, such as connecting employees with relevant elements of their total rewards package
A new report has revealed that financial concerns are harming employees' wellbeing, raising calls for employers to take action within their organisation.
More than half of employees in Hong Kong (52%) have admitted that they are at risk or struggling over their finances, according to the 2024 Global Benefits Attitudes Survey from WTW.
It comes as 35% of employees are already living paycheck to paycheck and are expecting their financial situation to continue deteriorating.
As a result, 63% of employees in Hong Kong said these financial concerns are negatively impacting their wellbeing. In fact, 28% said their financial situation is causing them higher levels of stress and anxiety.
"High inflation combined with the aftermath of a once in a generation pandemic is still causing many employees to feel overwhelmed and discouraged about their financial situation, which is affecting overall wellbeing," said Eric Lam, Head of Health & Benefits, Hong Kong and Macau, WTW, in a statement.
But Lam noted that they have been observing "some improvements" in the past few years, indicating that actions taken by employees and employers are helping.
"Employers should continue to take action to improve financial wellbeing within their organisation," Lam said. "These can include adequate education for employees to help plan their resources and close financial gaps, as well as connecting employees with relevant elements of their total rewards package."
Retirement concerns in Hong Kong
Meanwhile, the report also found that employees' financial situations are also affecting their retirement plans.
Among those struggling financially, 57% said they are unable to improve their retirement situation, which is also impacting their engagement, productivity, and emotional health.
Nearly three in four employees (72%) further admitted that they are not saving as much for retirement as they should be, according to the survey. This is an increase from the 69% in 2019.
William Chow, Head of Retirement, Hong Kong and Macau, WTW, said these findings indicate a "strong link" between short-term financial problems and savings for retirement.
"Many employees have work to do to address their retirement needs. Employer retirement programmes remain the primary path for employees to save for retirement," Chow said in a statement.
"With challenges meeting their day-to-day expenses while still planning for retirement, employees are looking for help from their employer to build a retirement nest egg, but they also report needing flexibility for emergencies and a desire to maximise their benefits."
Despite this strong need for retirement benefits, Chow said there is a "clear disconnect between employers and employees."
"Employers have an opportunity to align their focus with employee value, cost pressures, and talent objectives to address how their benefit programmes align to retirement and financial wellbeing initiatives," he said.
The 2024 Global Benefits Attitudes Survey from WTW surveyed 1,000 employees in Hong Kong who are working at medium and large private sector employers across a broad range of industries.
