Ceridian Study Finds North Americans' Financial Stress Highest Since 2008

Ceridian Study Finds North Americans’ Financial Stress Highest Since 2008

TORONTO and MINNEAPOLIS, Dec. 09 10, 2022 (GLOBE NEWSWIRE) — Ceridian (NYSE: CDAY; TSX: CDAY), a global leader in human capital management (HCM) technology, today announced the results of a study revealing that 61% of employees North Americans are more stressed about their finances today than they were a year ago – and are experiencing the highest level of financial stress since the 2008 financial crisis1.

This study, created in partnership with the Financial Wellness Lab of Canada, surveyed more than 4,200 workers in the United States and Canada to analyze three groups of people – stressed, unstable and comfortable – and to understand how each group demographic adapts to economic developments. , such as inflation and rising interest rates.

  • One in two workers in North America who had an emergency savings account dipped into it to pay for their necessities in 2022 (54%). Within the “stressed” population, the number rose to 67%.
  • Four in five employed North Americans (81%) plan to cut back on discretionary purchases like restaurants, entertainment and shopping. Virtually everyone in the “Stressed” category plans to spend differently (96%), compared to 40% in the “Comfortable” category.
  • A majority (78%) of employed North Americans are looking to boost their income to relieve financial stress in 2023. One in three (33%) plan to achieve this by getting a second or side job.

The study also found that 82% of employed North Americans spend time at work thinking about their personal finances. Almost one in four (23%) spend an hour or more a day, with most of them in the “Stressed” group. Based on average hourly wage from government sources2that time spent thinking about personal finances at work could represent a US$664 billion lost productivity for employers – $50 billion in Canada and $614 billion in the United States, estimates the Financial Wellness Lab of Canada.

“Financial stress is no longer just an individual issue, it’s an organizational impediment that costs businesses billions of dollars in lost productivity,” said Seth Ross, general manager, Dayforce Wallet and Consumer Services, Ceridian. “Employers need to offer their employees greater financial flexibility to support productivity and well-being at work. By embracing financial wellness benefits like Dayforce Wallet and pay-as-you-go, organizations can help position themselves as employers of choice by providing greater peace of mind to their employees.

“Whether workers are very stressed or comfortable with their financial situation, many are dipping into their savings and considering reducing their debts. This signals widespread financial insecurity across all demographic groups,” said Dr. Matt Davison, dean of science at Western University and head of research for the Financial Wellness Lab of Canada. “Many seek solutions beyond their control, such as asking for a raise or a promotion, but that doesn’t always guarantee the financial buffer they seek.”

As a growing number of North Americans feel stressed about their finances and struggle to cover expenses between pay periods, cash flow can be a major concern. Today’s two- to four-week pay cycles make it difficult for employees to access their pay when they need it.

Giving employees early access to their earned wages through pay-as-you-go has proven to be effective for both employees and employers. Since its launch in 2020, more than 1,300 North American employers have signed up to offer Dayforce Wallet to workers. Through Dayforce Wallet, employees spend approximately $28 per transaction, accessing their pay on-demand to cover food, gas, and other necessities.

Dayforce Wallet is available in the United States, Canada, and the United Kingdom. To learn more, visit: DayforceWallet.com.

Survey methodology:

This survey was conducted online in the United States and Canada by The Harris Poll on behalf of Ceridian from October 3-6, 2022 among 4,232 American and Canadian adults ages 18 and older. The sampling precision of Harris online polls is measured using a Bayesian credibility interval. For this study, the sample data is accurate to within +2.8 percentage points using a 95% confidence level.

The Financial Wellness Lab of Canada extrapolated the survey results to the total number of employed people in each country. Government sources were used to determine the average hourly wage plus benefits for those in full-time employment, and then derive the overall cost for employees who focus on their personal finances while at work. Machine learning algorithms were used to cluster the results into the three groups (stressed, unstable, and comfortable).

About Ceridian

Ceridian. Make life at work better™.

Ceridian HCM Holding Inc. is a global human capital management software company. Dayforce, its flagship HCM cloud platform, provides human resources, payroll, benefits, labor and talent management capabilities. The Dayforce platform is used to optimize the management of the entire employee lifecycle, including attracting, engaging, paying, deploying and developing people. Ceridian offers solutions for organizations of all sizes. Visit Ceridian.com or follow us @Ceridian.

Media Contact:
Hyeri Kim

1 Based on partner surveys and calculations by the Financial Wellness Lab of Canada since 2008.
2 According to data from the United States Bureau of Statistics, the median income of an American between the ages of 35 and 44 is $51,480 plus benefits of about 20%. In Canada, the median income for the same age group was $54,800, according to Statistics Canada.

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