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In 2023, the Federal Reserve released an alarming stat that has come to highlight a growing crisis being felt in American workplaces: More than one-third of Americans are unable to meet a $400 emergency expense without borrowing or selling.
That figure isn’t broken down by job type or level and could likely be much higher for frontline workers, who are particularly at risk for “financial fragility,” says Timothy Flacke, co-founder and CEO of Commonwealth, a nonprofit focused on supporting financially vulnerable people. Without intervention by HR and benefits professionals to improve frontline employees’ financial health, Flacke says, organizations stand to risk productivity, engagement and turnover.
Effectively moving the needle, he says, will require many organizations to undergo a fundamental mindset shift about employee benefits: away from the perception that they are a cost center to an appreciation that benefits can be “a key strategic part of helping organizations achieve their business objectives.”
Stressors challenging frontline workers’ financial health
Employee financial health has increasingly come into the HR and benefits spotlight in the last few years, partly because the pandemic inspired many employers to take a more holistic approach to employee wellness. Yet, the unique financial realities facing frontline workers still
