Data & Research August 14, 2007

Employees Financially Worse Off Than Last Year

More than half (56%) of employees say they are financially worse off this year than they were last year, and 30% say they are one major setback away from disaster.
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According to a survey by ComPsych, an employee assistance program company, nearly one-quarter (24%) of employees are in the same financial position as they were last year and 26% said they were worse off, with less savings/income and more debt than before.

Still, 16% said they are better off this year than they were last year and 4% said they were in the best financial position than they’ve ever been in, with bountiful reserves and very little debt.

“Market volatility has caused new uncertainties while wage growth has remained tepid. There is also a segment of the employee population in a precarious position with regard to mortgage payments – – our financial experts have fielded three times the normal amount of calls related to mortgage problems this year,” said Richard A. Chaifetz, chairman and CEO of ComPsych, in the press release.

The survey was conducted from July 13 to August 8, 2007, receiving responses from employees of more than 1,000 ComPsych client companies nationwide.

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