How Financial Wellness Programs Improve Employee Well-Being

Financial stress is one of the greatest challenges employees face today. According to PwC’s Employee Financial Wellness Survey, 57% of employees say financial worries negatively impact their day-to-day work. For employers, this means lower productivity, higher absenteeism, and increased turnover.

To combat these issues, many companies are investing in financial wellness programs — initiatives designed to help employees manage their money, reduce financial stress, and build long-term security. These programs don’t just benefit employees; they also create a healthier, more engaged, and more productive workforce.

In this article, we’ll explore what financial wellness programs are, why they matter, and how they create a win-win situation for both businesses and their employees.

What Are Financial Wellness Programs?

Financial wellness programs are employer-sponsored initiatives that provide employees with tools and resources to improve their financial health. These programs go beyond just offering a paycheck to help employees manage their money, reduce debt, save for the future, and plan for financial emergencies. Some common financial wellness programs include:

• Financial Education & Literacy Workshops: Seminars, webinars, and online courses that teach budgeting, saving, investing, and debt management skills.

• Retirement Planning Assistance: 401(k) matching, pension plans, and access to financial advisors to help employees prepare for retirement.

• Debt Management Support: Programs that offer guidance on paying down debt, consolidating loans, and improving credit scores.

• Emergency Savings Programs: Employer-sponsored savings accounts or payroll deductions that help employees build emergency funds.

• Student Loan Repayment Assistance: Contributions toward student loan debt, refinancing options, or loan counseling services.

• Access to Financial Advisors: One-on-one consultations with financial professionals to help employees make informed money decisions.

These programs can be offered as standalone benefits or as part of a broader employee assistance program (EAP). The goal is to empower employees with the knowledge and resources to take control of their finances and reduce money-related stress.

Why Employers Should Offer Financial Wellness Programs

Investing in financial wellness isn’t just a nice perk for employees. Providing education and resources for employees; it’s a strategic business decision that leads to a more productive and engaged workforce. 

Here’s how these programs benefit employers:

1. Increased Productivity

Financial stress can be a major distraction at work. Employees who are worried about paying bills or managing debt may struggle to focus on their tasks. A survey by Salary Finance found that 42% of employees spend at least three hours per week dealing with personal financial issues at work. That’s lost time and productivity that businesses can’t afford.

By providing financial education and support, employers can help workers feel more secure, allowing them to focus on their jobs instead of their wallets.

2. Reduced Absenteeism

Money-related stress can contribute to health problems, including anxiety, depression, and high blood pressure. Employees experiencing financial difficulties are more likely to take time off due to stress-related illnesses.

A study by the American Psychological Association found that financial stress is a leading cause of poor mental health, which can lead to increased absenteeism and higher healthcare costs for employers. By addressing financial wellness, companies can reduce these issues and promote overall well-being.

3. Higher Retention & Engagement

Employees value benefits that help them achieve financial stability. A study by Bank of America found that 84% of employers surveyed stated that offering financial wellness tools to employees increased employee retention. 

When employees feel supported financially, they are more likely to remain loyal to their employer. This reduces turnover costs, improves morale, and fosters a more engaged workforce.

4. Lower Healthcare Costs

Stress-related illnesses drive up healthcare expenses for employers. According to the National Institute of Mental Health, financial stress contributes to conditions like hypertension, heart disease, and depression.

Employers who provide financial wellness programs can help employees manage stress, reducing the need for costly medical treatments and improving overall workplace health.

5. Stronger Employer Brand & Recruitment

Today’s job seekers expect more than just a paycheck; they want meaningful benefits that support their well-being. Offering financial wellness programs makes a company more attractive to potential hires, especially younger workers who may be burdened with student debt.

By positioning financial wellness as part of a comprehensive benefits package, employers can stand out in a competitive job market and attract top talent.

How Financial Wellness Programs Benefit Employees

While businesses gain from financial wellness programs, the real winners are employees. Here’s how these programs improve workers' lives:

1.  Greater Financial Confidence, Reduced Stress and Anxiety

Financial concerns are a leading source of stress, affecting mental health and job performance. Many individuals have not had access to resources to encourage financial literacy, hindering informed decisions about savings, debt, and investments. 

Financial wellness programs provide education that boosts confidence in managing money.  Access to financial education and resources empowers employees to manage their finances effectively, reducing anxiety and enhancing overall happiness. 

For instance, Delta Air Lines introduced a financial education program that led to a 77% increase in employees feeling in control of their financial situations, positively impacting their work performance. ​

2. Improved Retirement Readiness

Saving for retirement is a common challenge, and economical differences between generations has made it harder for some generations than others. Gen Z workers are starting retirement savings earlier than other generations, with a median starting age of 19, compared to 35 for baby boomers. Additionally, a 2023 report from Prudential found that 35% of Gen-Xers currently have less than $10,000 saved for retirement. 

Financial wellness programs offering retirement planning resources and employer-matched contributions assist employees in securing their financial futures. 

3. Access to Resources and Support

Employees often lack the time or knowledge to seek financial advice independently. Employer-sponsored programs make financial planning accessible by providing expert guidance, budgeting tools, and savings incentives. For example, Asda launched a workplace savings scheme offering a 4.7% AER savings account, allowing employees to save effortlessly through payroll deductions or rounding up shift payments.

By implementing comprehensive financial wellness programs, employers empower their workforce to achieve financial stability, leading to reduced stress, increased confidence, better retirement preparedness, and readily available support resources.

Best Practices for Implementing a Financial Wellness Program

A well-designed financial wellness program can reduce employee stress, increase productivity, and improve retention. But for it to be effective, it must be thoughtfully structured to meet the real needs of your workforce. Here’s how to build a program that makes a meaningful impact:

1. Assess Employee Needs First

Before rolling out a program, take the time to understand your employees’ biggest financial challenges. Conduct anonymous surveys or host focus groups to gauge concerns — are they struggling with student loans, living paycheck to paycheck, or unsure about retirement planning?

For example, a tech startup with a younger workforce may find that employees need help navigating stock options and student loan repayment, while a manufacturing company with long-term employees may need a stronger focus on retirement savings and estate planning.

2. Offer a Diverse Range of Resources

Financial literacy isn't one-size-fits-all. Employees at different stages of life have varying concerns; one may be working on credit repair, while another is focused on buying a home or building an emergency fund.

To accommodate these differences, provide a mix of resources such as:

• Interactive workshops on topics like investing, budgeting, and debt management.

• One-on-one financial coaching for personalized advice.

• Digital tools like budgeting apps, savings calculators, and financial goal trackers.

• Partnerships with financial institutions to offer discounts on services like credit counseling or loan refinancing.

By offering a blend of self-paced and interactive learning options, you ensure all employees can engage in ways that work best for them.

3. Prioritize Accessibility & Inclusivity

Financial wellness should be available to everyone, regardless of income level or job type. Ensure your program is accessible to both salaried and hourly workers by offering:

• Flexible scheduling with on-demand webinars and evening workshops.

• Multilingual resources to reach non-native English speakers.

• Confidential access to financial counseling, so employees feel safe seeking help without fear of judgment.

For example, a company with a large remote workforce might invest in a mobile-friendly platform that allows employees to access financial tools anytime, anywhere, while an organization with in-person employees could set up financial “office hours” with advisors.

4. Measure Impact & Continuously Improve

A financial wellness program is only successful if it leads to tangible improvements. Track key HR metrics such as:

• Participation rates: Are employees engaging with the program?

• Self-reported financial stress levels: Are employees feeling more confident about their financial future?

• Retirement and savings contributions: Has there been an increase in 401(k) participation or emergency fund savings?

Gather feedback regularly through surveys and focus groups, and be prepared to make adjustments. If employees aren’t attending workshops, consider making them shorter or offering them at different times. If digital tools aren’t being used, explore more engaging platforms or provide guided onboarding sessions.

By continuously refining the program based on real data, you ensure it remains relevant and valuable to your workforce.

Final Thoughts

In today's economy, financial health stands alongside physical and mental health as a critical component of overall well-being. Employers who recognize and act on this understanding are poised to reap the rewards of a more engaged, loyal, and high-performing workforce. By integrating financial wellness into their employee support systems, companies can enhance individual lives while also strengthening their organizational foundation.​

Financial wellness programs are indispensable in fostering a supportive and thriving workplace. They address fundamental aspects of employees' lives, leading to enhanced productivity, retention, health, and a culture that promotes continuous growth.