Strengthening Employee Financial Wellbeing: Strategies for Employers

Growing Financial Concerns Across the US Workforce

Financial concerns create significant stress for many employees, and these concerns have been heightened by persistent and stubborn inflation pressures over the past several years, growing personal debts like credit card and student loans, and increasing medical costs. Financial concerns have been shown to lead to numerous negative consequences such as declining mental health, burnout, and absenteeism. A study by The Hartford found that 63% of US workers reported increased financial stress over the past year, with 56% stating that this stress negatively impacts their mental health. Workers experiencing financial difficulties are more likely to report feeling overwhelmed and exhausted, leading to higher rates of absenteeism and reduced productivity.

For the average US family, groceries today cost anywhere from 30% to 57% more than they did just prior to the pandemic. Personal debts, such as credit card debt and student loans, also significantly impact employee financial wellness. A 2023 PwC survey noted that record credit card debt is a major contributor to financial stress. And in the US, student loan debts are significant. As of the second quarter of 2024, the total outstanding student loan debt in the United States stood at over $1.74 trillion. Many of the holders of student loan debt are early in their careers and struggling to manage these debts while trying to grow their careers.

Rising costs, accumulating debts, inconsistent work hours, and a softening labor market combine to create a kind of perfect storm of financial worry and stress for employees. In fact, some research suggests that more than 6 out of 10 Americans currently live paycheck to paycheck. That’s tens of millions of people across the country, from all walks of life, who are one missed payday away from a crisis.

And it’s not just those earning lower wages who feel the pressure. According to research firm Zacks, almost half of people making over $100,000 a year — people who were once considered financially secure — report the same struggle. Even higher earners, those bringing in over $200,000, aren’t immune. More than a third of them live paycheck to paycheck as well. Additionally, in many organizations annual salary and wage increases have not kept up with rising costs for food, shelter, transportation, insurance and more.

While many organizations’ budgets have included salary increases for 2025, they may still be insufficient to keep up with inflation. Moreover, health care, childcare, education, commuting, and everyday costs will once again increase this year. Add all these financial responsibilities up, and it’s no wonder that workers today are worried about how they will earn a living and pay their bills. 

Strategies for Employers

For employers, considered responses to the challenge of employee financial wellbeing should be high on the benefits and employee experience list in 2025. Some of the options available to employers on behalf of their workers include:  

Holistic Wellness Programs: Employers are increasingly adopting a holistic approach to employee wellbeing, integrating physical, mental, financial, and emotional support. This includes offering financial wellness resources as a part of a comprehensive approach to overall employee wellbeing. 

Earned wage access – Earned wage access allows employees to access a portion of their earned wages before payday to avoid high-interest traditional payday loans. Access to EWA programs has become increasingly popular for employees.  

Financial education – Organizations can offer regular workshops on budgeting, saving, investing, and managing debt. Educational resources on the subject of financial planning can also be placed in employee portals and benefits websites.  

Emergency Savings Programs – Employers can offer contribution assistance to employee emergency savings funds. This helps encourage the creation of emergency savings accounts and with matching contributions or incentives more employees can establish a savings cushion to protect and prepare them for unexpected financial emergencies.  

Student debt solutions – Organizations can partner with third party service providers to facilitate employee student loan repayment assistance. These programs help manage employer contributions to student loan repayments as well as access to management and refinancing options.  

Retirement planning support – Employee retirement plan support and employer financial contribution to employee retirement savings have long been foundational elements of an employer’s commitment to employee financial wellbeing. Employers must continue to offer robust retirement savings plans, such as 401(k) with employer matching as well as education and incentives to boost employee participation in these retirement plans.  

Financial Wellness Technology: Financial wellness benefits are becoming a powerful tool for attracting and retaining talent. The HR tech market is growing in this area, with digital platforms offering personalized financial advice and resources. 

These strategies can help create a supportive culture where employees feel comfortable seeking financial and mental health support, feel connected to the organization in a more meaningful way, and can be more comfortable with their overall employment situation. 

Additional Resources 

Several technology and services providers have developed applications, platforms, networks, and other solutions that employers can leverage to help develop, deliver, and track the impact of employee financial wellbeing programs. Some examples include: 

Here are specific examples of technology providers for differing categories of financial wellness technology, along with descriptions of their services: 

Financial Education and Literacy 

Best Money Moves: Offers a mobile-first financial wellness app that helps employees make smarter financial decisions and reduce stress. 

Personalized Financial Planning 

Savology– Provides personalized financial plans and digital financial wellness benefits. Their platform helps users create custom financial plans, track progress, and access educational content to improve financial preparedness 

Automation and Convenience 

EarnUp – A personalized financial wellness program with custom debt management strategies, student loan repayment tools, emergency savings tools, and more.   

Earned Wage Access 

Paychex Flex® Perks: This digital marketplace offers a variety of financial wellness solutions, including early access to earned wages, financial education, and budgeting tools. Employees can access these benefits directly from their Paychex Flex account at no additional cost to the employer. 

Paycom Everyday®: Everyday lets employees receive daily wages on a Vault Visa® Payroll Card. Unlike on-demand pay services, this benefit allows employees to receive wages on a daily basis for no fee. 

Employee Financial Wellness Programs 

BrightPlan -Provides a comprehensive financial care platform that offers personalized financial coaching, emergency savings programs, and financial education. Their services are designed to help employees manage financial stress and improve overall financial health 

These technology providers offer a range of services that can help improve financial wellness for employees, making it easier for them to manage their finances and reduce stress. 

 Conclusion 

There is a great opportunity for employers to make a meaningful impact on the financial well-being of their employees, but so far, many are falling short. A recent Willis Towers Watson report shows a significant gap between the financial wellbeing support employees want from their employers and the priority employers are placing on financial wellbeing initiatives.   

Two in three employees (66%) ranked financial wellbeing as the area where they want the most support from their employers over the next three years. In fact, almost half (47%) of employees want employers to help grow their savings and wealth.  

Employee financial wellbeing has emerged as a critical issue for employers in 2025. The percentage of employees who are facing financial stress on a weekly or monthly basis is substantial – as many as two-thirds of employees are only one or two paychecks away from financial problems. Increased attention to this issue is essential for HR leaders this year.