Financial Wellness Study

Impact of COVID-19 

There’s no question that businesses of all sizes all over the world felt the negative impact of the coronavirus pandemic. Some had to lay off or furlough workers. Some had to close their doors for good. Saying that businesses and their employees alike suffered is an understatement. But how exactly did the pandemic affect businesses and their approach to employee benefits?

4 in 10 organizations suffered decline in revenue in 2020.

COVID-19 HAS HAD A MODERATE-TO-SIGNIFICANT IMPACT ON:

77% of employers say COVID has had a significant impact on employee mental health. 75% of employers say COVID has had a significant impact on business operations. 68% of employers say COVID has had a significant impact on employee financial health. 77% of employers say COVID has had a significant impact on employee mental health. 75% of employers say COVID has had a significant impact on business operations. 68% of employers say COVID has had a significant impact on employee financial health.
48%

Nearly half say COVID-19 increased
priority for financial wellness.

AS A RESULT OF THE PANDEMIC, EMPLOYERS HAVE EXPERIENCED:

31% of employers have experienced increased awareness of employee financial distress. 24% of employers have experienced budget freeze for new benefits. 20% of employers have experienced budget reduction for new benefits. 19% of employers have experienced new priorities for benefits for their employees. 18% of employers have experienced delayed approval for new benefits. 14% of employers have experienced reduction in current benefits. 31% of employers have experienced increased awareness of employee financial distress. 24% of employers have experienced budget freeze for new benefits. 20% of employers have experienced budget reduction for new benefits. 19% of employers have experienced new priorities for benefits for their employees. 18% of employers have experienced delayed approval for new benefits. 14% of employers have experienced reduction in current benefits.
The Takeaway.

The coronavirus pandemic didn’t just punch businesses in the gut. It stole their lunch money too. Four in 10 companies told us their businesses lost revenue from 2019 to 2020 after dealing with COVID-19 considerations. But that’s not the end of it. Those same employers saw their employees take a beating both financially and mentally as the pandemic set in. They became more aware of their employees’ financial distress—it was hard not to.

To deal with the impact of the pandemic, employers implemented budget freezes, reduced benefits, shifted priorities, and delayed budget approvals for new benefits. Some even cut certain benefits entirely to save money.

At the end of the day, the pandemic highlighted a huge problem. American businesses and their employees were not ready for a rainy day, let alone a pandemic. But despite all the harsh consequences of COVID-19 for businesses and employees, there’s a light at the end of the tunnel. Armed with true financial wellness, both your employees and your business can be ready for the unexpected.

COVID-19's got nothing on employers who care about their employees.

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