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Why Employers Should Invest in Financial Wellness Programs

  • ewalker223
  • Feb 5
  • 3 min read

Employee drawing a Financial Wellness Tree

Boost Employee Well-Being with Financial Wellness Benefits

In today's workforce, employees face growing financial stress, from managing debt to planning for retirement. Employers who invest in financial wellness programs can see higher employee productivity, reduced turnover, and improved workplace morale. With inflation, economic uncertainty, and rising healthcare costs, employees are more concerned about their financial security than ever before.


According to PwC's 2023 Employee Financial Wellness Survey, 60% of full-time employees are stressed about their finances. This is slightly higher than during the height of the pandemic. Even among employees earning $100,000 or more per year, nearly half (47%) are stressed about their finances. Financial stress impacts various aspects of employee health and well-being, from mental health to sleep to self-esteem. (Source: https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html)


What Are Financial Wellness Programs?

Financial wellness programs provide employees with education, tools, and resources to improve their financial health. These initiatives go beyond just offering a 401(k) plan—they empower employees to make informed financial decisions at every stage of their career.

Here are some core components of a strong financial wellness program:

  • Retirement Planning Assistance: Helping employees maximize their 401(k), 403(b), SEP IRA, or Roth IRA contributions while understanding employer matching benefits. (Learn more: IRS – https://www.irs.gov/retirement-plans)

  • Access to Financial Advisors: Providing employees with one-on-one financial coaching for topics like budgeting, saving, investing, and debt management.

  • Workshops on Personal Investments: Educating employees on stocks, bonds, mutual funds, and other investment vehicles to build long-term financial security.

  • Debt Management & Budgeting Support: Offering strategies to pay off student loans, credit card debt, and mortgages while learning how to budget effectively.

  • Emergency Savings Programs: Encouraging employees to build rainy-day funds and providing employer-matched savings incentives.

  • Financial Literacy Courses: Hosting educational sessions on tax planning, estate planning, and financial risk management to help employees take control of their financial future.


The Business Case for Financial Wellness Benefits

1. Increased Productivity

Employees experiencing financial stress are twice as likely to be distracted at work. The same PwC study found that 56% of financially stressed employees spend three hours or more per week at work dealing with or thinking about issues related to their personal finances. (Source: https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html)

When employees aren't focused on money-related stress, they're more engaged, creative, and productive in the workplace.


2. Higher Employee Retention & Satisfaction

A strong financial wellness program improves employee loyalty. Employees who feel their employer cares about their financial well-being are more likely to stay long-term.

Bank of America's 2024 Workplace Benefits Report indicates that 47% of American workers feel financially well, up from 42% the previous year. This improvement in financial wellness can contribute to higher employee satisfaction and retention. (Source: https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/05/bofa-study--percentage-of-american-workers-feeling-financially-w.html)


3. Reduced Healthcare Costs

Financial stress contributes to high blood pressure, anxiety, and depression, leading to increased healthcare costs and absenteeism. Addressing financial wellness can help mitigate these health issues, resulting in cost savings for employers.


4. Better Retirement Readiness

Many employees don't know how much they should be saving for retirement. Financial wellness programs bridge this knowledge gap by educating employees on:

  • Maximizing employer 401(k) contributions

  • Understanding IRA options (Traditional vs. Roth)

  • Exploring investment options beyond retirement accounts


How Employers Can Implement Financial Wellness Programs

  • Offer Retirement Education Sessions: Host workshops that educate employees on 401(k) contributions, employer matching, IRAs, and tax advantages.

  • Provide Access to Financial Advisors: Partner with financial professionals to offer free consultations on personal finance, debt management, and investments.

  • Incorporate Digital Financial Tools & Resources: Provide employees access to budgeting apps, financial planning software, and online courses.

  • Set Up Emergency Savings Programs: Offer payroll-deducted emergency savings accounts to help employees build financial security.

  • Encourage Financial Literacy Training: Host ongoing education on credit scores, home buying, estate planning, and tax strategies.


Real-World Success: Companies Leading the Way

Many top employers have successfully implemented financial wellness initiatives to support their workforce:

Final Thoughts

Investing in financial wellness programs isn't just a perk—it's a necessity for companies that want to support employees, enhance productivity, and improve retention. A financially secure workforce is a happier, healthier, and more engaged workforce.

Are you ready to build a financially empowered workplace?


Contact Worklife Benefit Consultants to explore custom financial wellness solutions for your employees!

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