Purchasing Power® releases second annual Public Sector Financial Wellness survey identifying immediate solutions for HR leaders to address employees' needs
ATLANTA – Purchasing Power, a financial wellness voluntary benefits company, today released findings from a proprietary survey spotlighting concerns from employees within the public sector on the ability to save for unplanned emergency expenses. As part of the 2024 Public Sector Financial Wellness eBook, Purchasing Power found that over one-third of public sector employees have less than $500 in savings. In addition to workers' financial challenges, the report outlines key insights and strategies for HR leaders to support their workforce better and strengthen recruitment and retention initiatives.
While the private sector has largely returned to pre-pandemic employment levels, public sector organizations face challenges filling roles amid high retirement rates and difficulty engaging with the next generation of workers, according to NEOGOV’s 2024 Public Sector Hiring Report. Organizations are adopting strategies focused on addressing workforce needs to boost recruitment and retention.
“Employees having less than $500 in emergency savings should sound an alarm bell for organizations of all sizes,” said Assad Lazarus, Chief Commercial Officer, Purchasing Power. “While inflation is trending in the right direction, it remains relatively high. As a result, the consequences of unexpected financial hardships – especially for employees who have difficulty accessing affordable credit – can be devastating.
“Not only can these situations have devastating impacts on retirement savings due to hardship withdrawals, but the results of this type of financial stress can negatively impact the organization through increased absenteeism, decreased productivity and lower engagement,” added Lazarus. “Today’s financial wellness programs must address not only long-term retirement planning, but also unique macro-economic conditions and immediate financial hardships many employees are facing today."
To gain timely insights into employee satisfaction and trendlines within the sector, Purchasing Power surveyed 750 full-time U.S. public service professionals so organizations can remain competitive in their talent recruitment and retention efforts.
Key insights from the report include:
- Total compensation, including benefits, is just as important as salary in creating a rewarding package for Public Sector employees: 90% of respondents believe benefits are just as important as salary. Yet, a quarter of workers surveyed are either not satisfied or very dissatisfied with the benefits options offered by their employer.
- Public Sector employees are looking for more comprehensive financial wellness voluntary benefits: The voluntary benefits that public sector workers do not currently have access to, but are most interested in, include low-interest installment loans (25%), a student loan repayment benefit program (20%), earned wage access (19.5%), bill payment programs (19%), medical deductible financing (18%), and an employee purchase program (17%).
- Labor shortages have impacted public sector employees: Nearly half of respondents (47%) say their organization has been impacted by a labor shortage in the last year, which has led to 51% being asked to handle multiple jobs simultaneously.
- Public Sector employees find it difficult to take time off amidst demanding responsibilities and schedules: Respondents shared that it's more difficult for them to take time off for appointments and vacations. Moreover, if they do take time off, they feel a sense of guilt because there is no one to cover them while they are out.
This is the fifth industry report from Purchasing Power since 2023. Earlier this year, Purchasing Power released its Retail Financial Wellness eBook and Manufacturing Financial Wellness eBook for HR leaders to gain insight into employees' needs and unlock key strategies to recruit and retain employees.
To download Purchasing Power’s 2024 Public Sector Financial Wellness Report eBook, visit here.
To learn more about Purchasing Power’s commitment to employee financial wellness and the solutions offered, visit corp.purchasingpower.com.
Survey Methodology
Data cited is the result of the 2024 Public Sector Financial Wellness Survey study by Purchasing Power. Conducted during September 2024, the study explored the financial wellness of over 750 U.S. public sector employees with at least two years of industry employment and earning $75K or less annually on topics including compensation, workplace benefits, monthly expenses, and more.
About Purchasing Power, LLC
Purchasing Power, LLC, is an Atlanta-based voluntary benefit company providing financial wellness solutions to employers, including the leading employee purchase program for consumer products and services using payroll deduction. Helping employees achieve financial flexibility, Purchasing Power is available to millions of people through large companies including Fortune 500s, associations and government agencies. Purchasing Power is a Flexpoint Ford, LLC company. For more information, visit corp.purchasingpower.com.