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Ceridian's Financial Wellness Survey: How do employees spend "extra" paychecks?

In a recent survey, Ceridian asked more than 4,000 managers and executives at small and mid-sized companies how they would spend an "extra" paycheck. Determined by the calendar year and a company's payroll schedule, employees get "extra" paychecks within a month two times per year.

Respondents were asked how they would spend a paycheck if they could spend it on anything, and they said the following:

• 40 percent would invest it.
• 29 percent would pay down debt.
• 15 percent would save it.
• Seven percent would spend it on home improvement.
• Five percent would contribute to a charity.

Decidedly last on the list of priorities was spending it on an extravagant gift for themselves. Managers were more likely than executives to pay down debt and their responses showed they were largely split between investing the money versus paying debt. "Survey respondents are telling us that financial concerns, such as debt and saving for the future are top of mind," says Jonathan Hefner, manager of legal and financial counseling services at Ceridian EAP and work-life services. "And there are a number of actions that employers can take to increase employee financial wellness."

"Companies can seize such payroll events, or even tax refund season, as a well-timed opportunity to encourage employee financial wellness and highlight helpful employer-sponsored savings plans, financial education programs and other support, such as employee assistance programs (EAPs), which provide confidential financial counseling resources," says Sharon Stein, Ceridian senior vice president of HR/Payroll.

"We all need to commit to a savings routine," says Marion Asnes, editor-in-chief of Financial Planning Magazine, who was interviewed about Ceridian's survey results. "Why? Because it's almost impossible to save money that's 'left over' at the end of the pay period. Set up an automatic savings plan with even a small amount of money taken directly out of each paycheck."

Research indicates that financial stress affects workers at all income levels. When employers partner with an EAP provider that offers financial counseling resources, employees can be more productive and better able to focus on work as they take steps to improve their financial situation.

Contact your Ceridian representative to learn more about Ceridian's EAP and work-life solutions.