What You Should Know:
– More than half of all healthcare workers (52%) feel less confident about their personal financial situation now compared to a year ago, according to a recent Harris Poll, among over 2,000 U.S. adults of which nearly 200 are healthcare workers, commissioned by IntelyCare and DailyPay.
– The latest IntelyCare Research Group report, looks at how financial precarity and stress affect healthcare workers and simultaneously explores measures that can be taken to address the problem.
Caregivers in Financial Precarity: Insights and Trends
Inflation is taking its toll on America’s healthcare workers. A recent Harris Poll, among over 2,000 U.S. adults of which nearly 200 are healthcare workers, commissioned by IntelyCare and DailyPay reveals that a majority of healthcare workers across the country say stress about their personal financial situation has had a negative impact on their sleep (64%), mental health (59%), self-esteem (56%), physical health (53%), and relationships at home (53%).
Overall, 68% of healthcare workers find it stressful to manage their finances (56% of Americans overall say the same) with more than half of healthcare workers (52%) feeling less confident about their personal financial situation now compared to a year ago. Looking ahead, 79% of healthcare workers are at least somewhat worried that changes in the economy (e.g., inflation, recession) will have a negative impact on their personal financial situation in the next six months. This is especially concerning given that already 65% of healthcare workers say their household typically lives paycheck-to-paycheck and 48% expect to need a short-term loan in the next six months.
Specifically, the majority of healthcare workers are more worried now compared to a year ago about paying for groceries/food (58%), rent/mortgage (57%), gas for an automobile (56%), and utility bills (53%). On a positive note, a majority of healthcare workers (71%) say their employer cares about their mental and physical health and the same proportion (71%) say their employer gives them the flexibility they need to manage their personal life during work hours.
But there is an appetite for even more flexibility as a majority of healthcare workers (58%) would be willing to reduce their paycheck for more flexible working hours. Nearly three-quarters (73%) say it is important to them that their employer provides tools and resources to help them manage financial stress.
“With the ongoing healthcare labor shortages plaguing this country, it’s very disheartening to see that so many of those who remain are struggling. With inflation and the holidays coming, we need to get smart about how we help our healthcare workers. Hiring bonuses and raises that are offset by rising living costs will not translate to building sustainable workforces,” said David Coppins, co-founder and CEO of IntelyCare. “We’ve spent the last few years at IntelyCare actively listening to our 50,000 nurses and aides. We’ve had tremendous success in terms of hiring and retention in large part due to offering differentiated financial benefits and working with partners like DailyPay.”
The research supports the positive impact an on-demand pay benefit can have on employee recruitment and retention. Among healthcare workers:
1. 71% would be more likely to remain at a job if their employer offered an on-demand pay benefit than if they didn’t offer one
2. 64% say that if they were seeking a new job, they would be more attracted to an employer that offered an on-demand pay benefit than an employer that did not
3. 65% say being able to track their earned wages on a daily basis would help alleviate financial stress
4. 30% would be willing to reduce their paycheck by 10% or more for more flexible working hours
5. 46% do not feel that their employer provides adequate resources or benefits to help them manage financial stress
“Healthcare professionals have given so much of themselves to support their communities, especially over the last few years with the global pandemic,” said Kevin Coop, Chief Executive Officer, DailyPay. “We are proud to partner with healthcare companies nationwide who are doing all they can to support their selfless team members with impactful benefits to help mitigate the negative effects of inflation.”
There are other avenues for healthcare organizations to consider as well. Answering the call for more scheduling flexibility is one, as 30% of healthcare workers would be willing to reduce their paychecks by 10% or more for more flexible working hours. There’s also a need for adequate resources or benefits to help workers manage financial stress, as 46% of healthcare workers do not believe their employer provides this access.
One additional consideration would be to provide supplemental financial support via a charitable not-for-profit organization, similar to IntelyCare’s IntelyHeart Foundation.