94 percent
Purchasing Power Reduces Financial Stress
impact employees with varied financial consequences, forcing many
people to turn to their employers for financial safety nets, such as
access to personal insurance, the purchasing of household products,
and receiving professional financial advice. Increasingly, employers
are offering non-traditional voluntary benefits to meet their
employees' financial needs. Forty-four percent of employers that offer
an employee purchase program do so because they believe it helps fill
financial gaps for workers during tough economic times, while 67
percent say it enhances their benefits package, according to survey
results published in "The Power of Employee Purchase Programs: The
Next Generation of Voluntary Benefits" the first white paper released
in the "The Power Behind the Purchase" series today by Purchasing
customers of its employee purchase program the opportunity to purchase
big-ticket items using payroll deduction. A copy of the study is
available at
http://www.purchasingpower.com/employers/d/WhitePaper_NextGenerationOfVoluntaryBenefits.pdf
Fifty-eight percent of employers surveyed by
financial "illness" contributes to employee absences at their
companies, and 78 percent agree that worry about personal financial
problems during work hours distracts employees to the point that they
are less productive. Voluntary benefits can provide a financial safety
net for employees. In a recent survey of
94 percent of respondents agreed or somewhat agreed, that having
access to the
reduce their financial pressures and stress.
As these benefits are deployed through the workplace, not having
access to this type of program is an issue that prevents many workers
from using them. In a separate study recently conducted online in
January by
2,099 U.S. adults age 18+, of whom 700 were employed full time and/or
their spouses are employed full-time, 74 percent of these
workers/spouses of workers say they do not have access to an employee
purchase program at work.
Credit cards still reign as the preferred financing option, with 60
percent of full-time employees and/or those whose spouses are employed
full time saying they are at least somewhat likely to make purchases
using credit cards, even though perhaps many are more than likely
still working to pay them off. Interest in purchase programs
definitely exists among employees, with 37 percent of U.S. adults who
are employed full-time and/or whose spouse is employed full time
saying they would be "at least somewhat likely" to use employee
purchase programs for purchases if their employer provided access to
them. And many employers are listening. According to an Employee
professionals offer this benefit because it was requested by
employees.
"An employee purchase program is an extra benefit that costs the
employer nothing, but provides a great option for employees," said
employers know that their workers are struggling, and this type of
program provides them the option of purchasing a variety of different
products at a reasonable price without the expense of rent-to-own or
other high-interest plans."
The survey conducted by
workers who are at least somewhat likely to use an employee purchase
program but either self or spouse do not, or are not sure if they have
access to the program, cite access to products they otherwise could
not purchase (57 percent), the ability to implement a more disciplined
budget (51 percent) and increased workplace productivity by reducing
financial concerns (e.g., able to purchase products like refrigerators
or washers/dryers through payroll deduction)(46 percent), as the top
three benefits of using these programs. This group also noted that
this program might help reduce stress (36 percent), balance work-life
by enriching time spent with their family (e.g., enjoying cameras,
televisions, video game systems, and other electronics with my family)
(30 percent) and further their careers or those of other family
members (e.g., go back to school, take online training classes).
While employers acknowledge that financial stress has an effect on
their workplace, only 17 percent of respondents to an Employee
general lack of knowledge and misconceptions seems to exist among
employers about these programs. Employers are no longer exposed to
unwanted liability and administration.
"From an operational perspective, as far as my staff and our hospital
is concerned, we do very, very little," said
Recruitment & Benefits,
Power really takes the burden of most of the work."
As healthcare and other costs maintain momentum, employees will
continue to turn to the workplace for benefits and other financial
safety nets due in large part to the choice, cost savings and
convenience this channel offers them. Employee purchase programs, in
particular, have proven to be viable, cost-effective alternatives to
other consumer purchase plans, such as rent-to-own. And, with a
will account for nearly half of all employees worldwide by 2015,
predictions indicate this generation will be the first in more than a
century that is unlikely to be better off financially than their
parents.
Employers simply cannot afford to ignore Gen Y workers-or any other
employees who might be struggling financially. Financially secure
employees are more productive workers. Providing employees with
year-round access to responsibly purchase much-needed household items
enables companies to build a solid foundation of financial wellness
for their workforce.
Harris Interactive Survey Methodology
This survey was conducted online within
Interactive on behalf of
2012 among 2,099 adults age 18+ of whom 700 are employed full time
and/or their spouses are employed full-time. This online survey is not
based on a probability sample and therefore no estimate of theoretical
sampling error can be calculated. For complete survey methodology,
including weighting variables, please contact
About
research firms, leveraging research, technology, and business acumen
to transform relevant insight into actionable foresight. Known widely
for the Harris Poll and for pioneering innovative research
methodologies, Harris offers expertise in a wide range of industries
including healthcare, technology, public affairs, energy,
telecommunications, financial services, insurance, media, retail,
restaurant, and consumer package goods. Serving clients in over 215
countries and territories through our North American and European
offices and a network of independent market research firms, Harris
specializes in delivering research solutions that help us – and our
clients – stay ahead of what's next. For more information, please
visit http://www.harrisinteractive.com
Purchasing Power Survey Methodology
Purchasing Power collected 2091 responses via an online survey of
customers who placed orders from
Some of the questions have fewer than 2000 responses because the
customer selected N/A or left it blank. The statistics have a margin
of + or – 3% at a 99% confidence level and + or – 2% at a 94%
confidence level.
About
Headquartered in
2001 and offers customers an alternative to purchase a variety of name
brand products and pay for them over 12 months through payroll
deduction. Purchasing Power differentiates itself from traditional
e-commerce retailers through its unique payment plan value
proposition, strategic benefit broker partnerships, internal marketing
expertise and superior customer service. Purchasing Power is a
than 600,000 orders for employees of companies and organizations
including Fortune 500 and government agencies. For more information,
visit http://www.PurchasingPower.com
Media Contact:
SOURCE
-0-
/Web Site: http://www.PurchasingPower.com
CO: Purchasing Power, LLC
ST:
IN: FIN WRK
SU: SVY
PRN
— CL90046 —
0000
| Copyright: | (c) 2012 The Associated Press |
| Source: | Associated Press |
| Wordcount: | 1320 |
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