What Is Financial Wellness at Work and Why It Matters for Your Team

What is financial wellness—and why should you care as an employer? It’s more than having a budget or a retirement account. Financial wellness is the state of having control over your daily finances, the ability to absorb unexpected expenses, the freedom to make life choices, and the confidence to plan for the future.

For employers, this matters because employees who are financially secure are less distracted, less stressed, and more engaged at work. When money worries take a back seat, employees can focus on doing their best work—and that’s a win for everyone.

"When money worries take a back seat, employees can focus on doing their best work—and that’s a win for everyone."

When employees struggle financially, it impacts focus, productivity, and morale. Consider these stats:

• 92% of employees are stressed about money

• 85% carry debt, with nearly half carrying more than they can manage

• 77% of workers earning under $50K live paycheck to paycheck

• 82% of 18–34-year-olds and 77% of 25–44-year-olds cite money as a major stressor

Supporting financial wellness isn’t just good for employees—it’s good for business. Less stress means better focus, fewer absences, and a stronger commitment to your organization.

Compensation & Clarity

Fair pay is the foundation of financial wellness. Employees need confidence that they’re compensated appropriately and understand how their financial decisions—savings, debt, retirement contributions—affect their future.

Flexible Benefits & Education

Review your benefits regularly to ensure flexibility and accessibility. Offer education around health plans, retirement options, and cost comparisons so employees can make informed decisions. If possible, take it further—create space for employees to manage stress (think “No-Meeting Mondays”) and give them room to focus on work-life balance.

Financial Education Programs

Financial literacy isn’t taught in school, so employers have an opportunity to close that gap. Consider hosting retirement plan education sessions with your broker; offering automatic enrollment and contribution increases; or providing unbiased financial coaching or workshops.

Research shows financial education can remove one hour of money-related worry per week per employee—the equivalent of $780/year saved per employee in potential lost productivity.

Encourage Smart Habits

Offer employees the resources and tools (EAP anyone?!?) to help them build an emergency fund, develop a plan to reduce high-interest debt, and create long-term savings goals. Even think about offering ‘lunch and learns’ to provide your employees with ongoing financial knowledge.

The Ripple Effects

When employees have financial confidence, they:

• Experience less stress and better physical/mental health

• Spend less work time dealing with personal money problems

• Return from time off recharged and productive

• Strengthen relationships at home and work

• Build retirement security and peace of mind

Ultimately, financial wellness gives employees freedom to make life choices, stay engaged, and bring their best selves to work. By investing in their financial well-being, you’re not just supporting their wallets—you’re fueling their growth, loyalty, and performance.

-Penny