February 19, 2024

Study looks at financial challenges faced by Hispanic workers

While many American workers report increased burnout and financial challenges, Hispanics – the most rapidly growing economic force in the nation – are facing these issues at a higher rate, according to a recent Aflac study.

The 13th annual Aflac WorkForces Report brings attention to critical issues, such as burnout and financial strain that are prevalent in the American workplace, said Ines Rodriguez Gutzmer, senior vice president at Aflac Incorporated. And the report takes a purposeful hard look at how Hispanics are impacted.

Key findings

Key findings from the survey indicate that Hispanic employees face challenges like increased anxiety about health care costs, a reduced ability to draw from savings for unexpected medical expenses, and a greater reliance on support systems due to concerns about insurance coverage — all of which can compound workplace stress and burnout, added Gutzmer.

“The survey reveals that 66% of Hispanic workers report an inability to go more than a month without a paycheck, compared to 51% of their non-Hispanic counterparts,” she said. Additionally, Gutzmer said, 54% of Hispanic employees express high levels of anxiety regarding health care costs surpassing their insurance coverage, emphasizing the urgent need for accessible solutions.

The data also show that Hispanic workers are less likely than their non-Hispanic counterparts to be able to draw from a checking or a savings account to cover unexpected medical expenses, Gutzmer said. Only 43% of Hispanic workers report this ability, compared to 53% of non-Hispanic workers. Lastly, 57% of Hispanic workers cannot afford $1,000 in out-of-pocket expenses, exceeding the 50% reported by all employees.

So why are so many Hispanic workers experiencing more financial challenges than other demographic groups? “Our study did not focus on causation, so we can’t speculate on why certain challenges exist,” Gutzmer said. “What we can say, however, is that when faced with an unexpected medical expense, Hispanic workers are more likely to rely on family or friends (29% vs. 24% of non-Hispanic workers) or seek a second job for supplemental income (26% vs. 17% of non-Hispanic workers).”

High interest in supplemental insurance

Additionally, the survey noted that interest in supplemental insurance is much higher among Hispanic workers than their non-Hispanic counterparts.
According to the survey, most Hispanic employees (90%) who have supplemental insurance said that those benefits provide an added layer of financial security. But only 39% of employers indicated that they offer supplemental insurance options to their employees.
Of employers who offer supplemental insurance to their employees, 80% believe these benefits help with recruitment, and 82% said that they help with retention.
“We did find it interesting that the desire for supplemental insurance is higher among Hispanic workers,” Gutzmer said. “While the study did not focus on why this is the case, as a Latina, I can say that there is a significant focus on family and responsibility to protect family within the Hispanic community, which could lead to a strong desire to prepare for potential challenges.”

The report also found that language preferences are crucial, Gutzmer added. “In fact,” she said “the 2023 Aflac Wellness Matters survey also found that Hispanic consumers often find language to be a significant barrier to seeking preventative health care, which is a gap that we hope to close, going forward. The importance of advisors providing materials and consultations in Spanish for clear, understandable communication is significant.”

Trust also plays a critical role, Gutzmer added. “Tailoring the approach to highlight family protection and emphasizing a straightforward claims process are both effective steps for reaching this demographic,” she said.

Supplemental insurance acts as a comprehensive safety net, helping alleviate the financial burden of serious medical diagnoses and assisting with some out-of-pocket expenses, Gutzmer explained.

Beyond financial aid, it provides invaluable resources for patients and families. “This holistic approach fosters resilience by seamlessly combining financial protection with empathetic guidance, enabling individuals to prioritize their health and well-being,” she said.

The 2023-2024 Aflac WorkForces Report, conducted by Kantar on behalf of Aflac, is the 13th annual study examining benefits trends, attitudes, and use of employee benefits in the U.S. workforce in various industries and business sizes. The employer survey took place online June 2-25, 2023, and the employee survey took place online June 2-27, 2023. The surveys captured responses from 1,201 employers and 2,000 employees across the United States.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at amseka@INNfeedback.com.

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