Ceridian Survey Finds Chicago Workers Most Likely to Pay Down Debt if Given an Extra Paycheck
June 7, 2006
Results indicate local employees pursue healthy financial practices; compared to a national study, Chicago workers more concerned with debt than national average
10 percent of Chicago workers would use the money to attend more Bears, Bulls, Blackhawks, Cubs and White Sox games
CHICAGO - [June 7, 2006 - Chicago workers would pay down debt with an "extra" paycheck, as opposed to buying an extravagant gift for themselves or helping buy a new home, according to a new survey recently conducted by Ceridian (www.myceridian.com), a leader in managed human resource outsourcing solutions.
Prompted by experts' concerns regarding employee financial wellness, Ceridian surveyed 253 Chicago workers to better understand the personal finance choices that are made in an increasingly tight economy. Survey respondents were asked, "How would you use the money from an extra paycheck if you could use it any way you wish?," and were presented with multiple usage options. Fifty-nine percent of respondents reported they would pay down debt with the paycheck dollars, followed by 43 percent of respondents who would travel. Saving the money for a rainy day ranked a close third at 41 percent. Investing the "extra" money came in fourth at 36 percent. Other popular responses included starting a home improvement (25 percent) and enjoying a meal at a fine dining establishment (23 percent). Ten percent of respondents reported they would use some of the money to attend more Bears, Blackhawks, Bulls, Cubs and White Sox games.
In a national Ceridian survey asking "If you could take one paycheck and do anything with it, what would it be?," workers ranked investing the paycheck number one (40 percent). Chicago workers, when asked the same question in the local survey, chose pay down debt (43 percent), with only 15 percent selecting invest the money.
The three-paycheck phenomenon also encouraged Ceridian to conduct the local survey. Twice a year, as a by-product of calendar design, U.S. workers who are paid every other week (rather than monthly or semi-monthly, for example) receive a third or "extra" paycheck in one month.
"In addition to calendar-triggered 'three-paycheck months,' there are a number of other scenarios, such as company acquisitions or pay schedule changes that may result in an 'extra' paycheck for employees," said Michael Booth, area vice president for Ceridian's Chicago regional office. "Companies can seize such payroll events as a well-timed opportunity to encourage employee financial wellness and highlight helpful employer-sponsored savings plans, financial education programs and other tools, such as an employee assistance program (EAP), which provides, among other things, confidential financial counseling and resources."
Financial Wellness Background Information from Ceridian's National Survey
Paychecks and personal finance choices have the potential to impact employee productivity. In the American Payroll Association's 2005 Getting Paid in America survey, nearly 74 percent of people surveyed revealed it would be very or somewhat difficult to meet current financial obligations if their next paycheck were delayed for a week. "The national savings rate continues to fall at the same time as traditional retirement-funding mechanisms, in particular corporate pensions and Social Security, are weakening, and as overall indebtedness is climbing," commented Marion Asnes, editor-in-chief of Financial Planning magazine, a professional magazine that goes to more than 100,000 financial advisors in the U.S. Asnes, who was a senior editor at Money magazine before joining Financial Planning continued, "We all need to commit to a savings routine. Why? Because it's almost impossible to save money that's 'left over' at the end of the pay period - for most families, there simply isn't any. It's important for employees to pay themselves first. By building a savings account, employees will be able to cover surprise expenses, such as, say, car repairs, without going into debt. If possible, encourage employees to set up an automatic savings plan with even a small amount of money taken directly out of each paycheck. As their paychecks grow, they can add to the amount going into the savings plan. In addition, we all have to prepare ourselves to move forward in our careers so we can earn and save more. Education and training may be the best investment we can make in ourselves."
Jonathan Hefner, manager of Legal and Financial counseling services with LifeWorks, Ceridian's EAP and work-life services division, commented, "Respondents to Ceridian's paycheck survey are telling us that financial concerns, such as debt and saving for the future, are top of mind. There are a number of actions employees can take to increase their financial wellness. An EAP is a confidential resource that can help them assess and prioritize options."
Ceridian, one of the largest payroll providers in the U.S., has nearly 75 years of experience in payroll and processing and has provided financial counseling through its work-life/EAP services for more than 25 years. For more information on Ceridian's paycheck survey, and resources that can help employers and employees to improve financial wellness, visit www.myceridian.com/extracheck. Ceridian also has established the following Web site for HR and payroll professionals to gather and share information about HR/payroll outsourcing and the benefits these solutions can provide to their organizations: .www2.ive-got-a-secret.com
About Ceridian
Ceridian is changing the world of work by enabling companies to be free to succeed in their core business through its suite of innovative managed human resource solutions that include payroll and compensation, staffing, compliance, HR administration and employee effectiveness. Our wide range of HR, payroll, work-life and benefits services are designed to help companies maximize the value of their people. Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe. For more information about the human resource outsourcing company's comprehensive array of solutions, visit www.myceridian.com or call (800) 729-7655.
Results indicate local employees pursue healthy financial practices; compared to a national study, Chicago workers more concerned with debt than national average
10 percent of Chicago workers would use the money to attend more Bears, Bulls, Blackhawks, Cubs and White Sox games
CHICAGO - [June 7, 2006 - Chicago workers would pay down debt with an "extra" paycheck, as opposed to buying an extravagant gift for themselves or helping buy a new home, according to a new survey recently conducted by Ceridian (www.myceridian.com), a leader in managed human resource outsourcing solutions.
Prompted by experts' concerns regarding employee financial wellness, Ceridian surveyed 253 Chicago workers to better understand the personal finance choices that are made in an increasingly tight economy. Survey respondents were asked, "How would you use the money from an extra paycheck if you could use it any way you wish?," and were presented with multiple usage options. Fifty-nine percent of respondents reported they would pay down debt with the paycheck dollars, followed by 43 percent of respondents who would travel. Saving the money for a rainy day ranked a close third at 41 percent. Investing the "extra" money came in fourth at 36 percent. Other popular responses included starting a home improvement (25 percent) and enjoying a meal at a fine dining establishment (23 percent). Ten percent of respondents reported they would use some of the money to attend more Bears, Blackhawks, Bulls, Cubs and White Sox games.
In a national Ceridian survey asking "If you could take one paycheck and do anything with it, what would it be?," workers ranked investing the paycheck number one (40 percent). Chicago workers, when asked the same question in the local survey, chose pay down debt (43 percent), with only 15 percent selecting invest the money.
The three-paycheck phenomenon also encouraged Ceridian to conduct the local survey. Twice a year, as a by-product of calendar design, U.S. workers who are paid every other week (rather than monthly or semi-monthly, for example) receive a third or "extra" paycheck in one month.
"In addition to calendar-triggered 'three-paycheck months,' there are a number of other scenarios, such as company acquisitions or pay schedule changes that may result in an 'extra' paycheck for employees," said Michael Booth, area vice president for Ceridian's Chicago regional office. "Companies can seize such payroll events as a well-timed opportunity to encourage employee financial wellness and highlight helpful employer-sponsored savings plans, financial education programs and other tools, such as an employee assistance program (EAP), which provides, among other things, confidential financial counseling and resources."
Financial Wellness Background Information from Ceridian's National Survey
Paychecks and personal finance choices have the potential to impact employee productivity. In the American Payroll Association's 2005 Getting Paid in America survey, nearly 74 percent of people surveyed revealed it would be very or somewhat difficult to meet current financial obligations if their next paycheck were delayed for a week. "The national savings rate continues to fall at the same time as traditional retirement-funding mechanisms, in particular corporate pensions and Social Security, are weakening, and as overall indebtedness is climbing," commented Marion Asnes, editor-in-chief of Financial Planning magazine, a professional magazine that goes to more than 100,000 financial advisors in the U.S. Asnes, who was a senior editor at Money magazine before joining Financial Planning continued, "We all need to commit to a savings routine. Why? Because it's almost impossible to save money that's 'left over' at the end of the pay period - for most families, there simply isn't any. It's important for employees to pay themselves first. By building a savings account, employees will be able to cover surprise expenses, such as, say, car repairs, without going into debt. If possible, encourage employees to set up an automatic savings plan with even a small amount of money taken directly out of each paycheck. As their paychecks grow, they can add to the amount going into the savings plan. In addition, we all have to prepare ourselves to move forward in our careers so we can earn and save more. Education and training may be the best investment we can make in ourselves."
Jonathan Hefner, manager of Legal and Financial counseling services with LifeWorks, Ceridian's EAP and work-life services division, commented, "Respondents to Ceridian's paycheck survey are telling us that financial concerns, such as debt and saving for the future, are top of mind. There are a number of actions employees can take to increase their financial wellness. An EAP is a confidential resource that can help them assess and prioritize options."
Ceridian, one of the largest payroll providers in the U.S., has nearly 75 years of experience in payroll and processing and has provided financial counseling through its work-life/EAP services for more than 25 years. For more information on Ceridian's paycheck survey, and resources that can help employers and employees to improve financial wellness, visit www.myceridian.com/extracheck. Ceridian also has established the following Web site for HR and payroll professionals to gather and share information about HR/payroll outsourcing and the benefits these solutions can provide to their organizations: .www2.ive-got-a-secret.com
About Ceridian
Ceridian is changing the world of work by enabling companies to be free to succeed in their core business through its suite of innovative managed human resource solutions that include payroll and compensation, staffing, compliance, HR administration and employee effectiveness. Our wide range of HR, payroll, work-life and benefits services are designed to help companies maximize the value of their people. Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe. For more information about the human resource outsourcing company's comprehensive array of solutions, visit www.myceridian.com or call (800) 729-7655.
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