Op-Ed: Alexander Haig: Healthcare Workers Are Stressed About Their Finances: Here’s How Employers Can Help
The majority of healthcare workers across the United States are struggling with their finances, causing stress which is negatively impacting their work. Research conducted by the Harris Poll and DailyPay revealed the following:
The majority (57 percent) of healthcare workers in the U.S. feel stressed about the state of their finances.
Nearly half (49 percent) find it challenging to pay bills on time.
Thirty-four percent say they ran out of money between paychecks in the past year.
A quarter (25 percent) say they were unable to pay a bill in the past year.
The survey also reveals the financial challenges of healthcare workers today could potentially have a long-term negative impact.
Over a third (37 percent) of healthcare workers in the U.S. say they cannot adequately save enough for the future.
Thirty-four percent say they do not feel like they can save enough money to live comfortably in retirement.
Separately, according to a PeopleJoy study, The Impact of Loan Forgiveness on Employee Retention, financial stress in the healthcare industry can lead to operational inefficiencies and reduced workforce stability. Their research found financial stress can lead to reduced productivity, increased absenteeism, and higher turnover rates.
And it’s not only the fluctuating economy and high inflation that’s impacting healthcare workers’ finances. The steep cost of higher education has left healthcare professionals burdened with significant student debt. The average student loan debt for medical school graduates in 2024 was $205,000. The PeopleJoy study noted these incredibly high debts influence career choices, job satisfaction, and, most importantly, employee retention in nonprofit health systems.
It was only just a few years ago during the COVID pandemic that millions of Americans clapped from their windows each night to honor the brave men and women who selflessly put their lives on the line to keep their communities safe. These frontline heroes still deserve our admiration and support. But now we are at another crossroads as so many healthcare workers are looking to leave the industry altogether.
Because without help from employers, research shows many will flee the profession.
A TIAA Institute study revealed that one in four healthcare workers intends to leave their job in the next two years. Their research notes that more than 90 percent cite burnout as their top reason for wanting to leave. The stress of the job coupled with a losing battle to make ends meet is too much for some to bear.
And for healthcare companies, increased employee turnover rates can be a significant drain on finances, factoring in the expense of recruiting, hiring, and training new employees. For example, according to Statista the average cost for U.S. hospitals to replace a registered nurse who left was about $56,000. Considering that nationally, the hospital turnover rate stands at over 18 percent, it is imperative healthcare employers find ways to help their team members survive and thrive in such a stressful profession.
To help alleviate stress, in particular financial-related stress, many healthcare providers are turning to a financial wellness solution that empowers workers with choice and control over their earned pay to pay bills on time and take charge of their finances.
The employer-offered benefit of On-Demand Pay is often free to the employer and research shows employees have expressed a true desire for it. The aforementioned Harris Poll study revealed that the majority (82 percent) of healthcare workers in the U.S. say it would be helpful to be paid more frequently than twice per month and nearly half (48 percent) say that On-Demand Pay would help their ability to balance their personal finances.
In addition, a survey DailyPay showed that its On-Demand Pay platform ranked as the #1 adopted financial wellness benefit. The survey noted that DailyPay outranks other benefits for the top spot, including 401(k)s, flexible schedules, HSA/FSA accounts, life insurance, wellness programs, and educational assistance.
Overall, only healthcare benefits ranked higher in terms of adoption according to the survey.
At a time when they were needed most, millions of healthcare workers answered the call of duty during the most uncertain of times just 5 years ago. But today, so many of those heroes need the help of their employer to weather the stormy economy. On-Demand Pay can play such a role in helping healthcare workers pay bills on time and begin the all-important journey to financial wellness and stability. And who deserves it more than them?
Alexander Haig is a combat veteran with two-plus decades of public sector experience. He currently serves as the Vice President of Public Sector for DailyPay.