April is Financial Literacy Month, making it the ideal time for HR professionals to take a closer look at how their organizations support employees’ financial wellbeing. While compensation is a central component of any Total Rewards package, today’s workforce is asking for more than just a paycheck. Employees want guidance, tools, and education that help them manage their finances confidently, and they’re looking to their employers for support.
As financial stress continues to rise across industries and demographics, forward-thinking organizations are investing in financial wellness programs that educate employees on budgeting, retirement planning, and debt management. These initiatives aren’t just good for employees, they’re good for business.
Financial Stress Is on the Rise, and It’s Costing Companies
According to PwC’s 2023 Employee Financial Wellness Survey, 57 percent of employees say money is a top cause of stress, surpassing even organizational changes such as cost-cutting measures or layoffs. This figure has increased since the height of the COVID-19 pandemic, showing that financial anxiety remains deeply embedded in daily life.
And that stress is showing up at work. 44 percent of financially stressed employees say money worries have significantly hindered their performance and productivity on the job. The impact is not just mental, it’s physical and emotional, too. Employees cite disrupted sleep (56 percent), declines in mental health (55 percent), and lowered self-esteem (50 percent) as the most common effects of financial pressure.
Employees Are Looking to Employers for Support
It’s clear that the effects of financial stress don’t stop at the office door. The good news is that employees want help, and they see their employers as part of the solution. In fact, 74 percent of employees say they want support from their employers to build a more stable financial picture. This includes access to financial education, tools for decision-making, and even assistance in managing unexpected expenses.
These requests aren’t going unheard. Engagement with employer-provided financial services is at an all-time high, with 68 percent of employees saying they actively use or have used financial support programming provided by their organization. The growing popularity of financial wellness tools shows that when resources are accessible and relevant, employees are eager to take advantage of them.
Financial Support Affects Retention and Loyalty
It’s not just a “nice-to-have” anymore; financial wellness programming has become a strategic retention tool. According to the same PwC report, 73 percent of employees say that access to employer-provided financial support plays an important role in whether or not they stay with their current organization.
That makes financial wellness an essential part of any Total Rewards strategy. By including financial education, tools, and support within your benefits communication, you’re not only improving individual outcomes but also reinforcing the value your organization places on long-term employee well-being.
How HR Teams Can Build an Effective Financial Wellness Program
If your organization is looking to better support employees’ financial health, here are a few starting points:
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● Assess employee needs: Use surveys or feedback tools to understand where employees struggle the most, be it saving, debt, or retirement planning.
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● Offer flexible resources: Consider offering a mix of one-on-one financial counseling, digital budgeting tools, retirement education, and webinars tailored to different age groups or financial goals.
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● Integrate financial wellness into your Total Rewards Communication: Make sure employees know these resources exist by including them in onboarding, regular benefits messaging, and Total Rewards Statements.
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● Track engagement and impact: Use participation data and feedback to refine and improve your offerings over time.
Read More: The Connection Between Financial and Physical Wellness: Why It Matters for Your Workforce
Conclusion: Financial Wellness Is a Win-Win
In today’s workplace, empowering employees to take control of their financial future isn’t just a trend, it’s a necessity. Financial wellness programs reduce stress, improve performance, and signal to employees that they are truly valued. When communicated clearly through a strong Total Rewards strategy, these programs become a powerful tool for engagement and retention.
As we observe Financial Literacy Month, now is the time for HR teams to act. Because when employees thrive financially, organizations thrive too.
