In honor of National Employee Benefits Day on Wednesday, April 2, help employees regain their peace of mind with comprehensive financial wellbeing support.
Wednesday, April 2, marks the 21st annual celebration of National Employee Benefits Day, which recognizes the important role of benefits professionals and encourages organizations to assess whether their offerings truly meet employees’ evolving needs.
This year’s theme, ‘Future-Ready Financial Wellbeing,’ couldn’t have come at a more perfect time, as 82 percent of Americans now report feeling stressed about their personal finances—more than work, family, or politics. Adjusting benefits packages to effectively address this growing dilemma will require leaders to understand the specific challenges impacting employees’ financial wellbeing and recognize the pivotal role holistic wellbeing support plays not just in alleviating financial strain, but in cultivating resilient teams equipped to thrive in an unpredictable economic climate.
The Current State of Americans’ Financial Wellbeing
Amidst rising inflation rates, a weakening job market, and ever-present geopolitical and climate crises, a growing number of people are struggling to make ends meet while still trying to save for the future.
Findings from Bankrate’s 2025 Annual Emergency Savings Report reveal that 27 percent of Americans have less in their emergency savings than they did a year ago, while another 27 percent have no emergency savings at all. Even for those who have saved, three in five report feeling “uncomfortable” with their financial cushion. This comes as a December 2024 survey found that 73 percent of respondents struggled to afford anything beyond their basic living expenses, with a third relying on debt to do so.
To stay afloat, new research shows that more Americans—particularly younger generations—are turning to side hustles and additional income streams to boost their finances, with a third citing this as their primary financial goal for 2025. While this entrepreneurial mindset can certainly be seen as a sign of resilience, it also raises some concerns.
Already, at least half of employees have observed declines in their productivity and concentration at work due to financial stress, while nearly half report consequences to their mental health, energy levels, sleep, and overall wellbeing. Adding more work and financial decisions on top of this will likely only worsen these challenges—unless individuals can effectively juggle the demands of their job, side gig, relationships, and personal wellness without sacrificing any in the process.
This seems unlikely, as reports show that Americans’ current financial stress is already costing organizations over $500 billion a year. This includes at least a month of lost work time per employee each year—amounting to 11-14 percent of payroll expenses per employee—as well as a marked increase in chronic tardiness and absenteeism.
Moreover, research finds that financially stressed workers are:
- 10 times more likely not to finish daily tasks
The Business Case for Financial Wellness
Clearly, organizations have a vested interest in supporting their employees’ financial wellbeing. And why shouldn’t they? 81 percent of employees agree their employers should invest in their financial wellness and literacy, while data shows that offering holistic financial solutions could lead to 30 percent higher retention rates, not to mention boosts in morale, engagement, productivity, and performance.
A financially secure workforce is ultimately a healthier, happier, and more committed workforce. By reducing financial stress, employers can help workers reclaim control of their lives, improve their health and overall wellbeing, and adopt a future-ready, forward-thinking mindset. This not only sets the stage for greater creativity, innovation, and success—it also puts employees in a better position to navigate setbacks or unexpected challenges with confidence and ease, resulting in more resilient and adaptable teams.
How Employers Can Boost Employees’ Financial Readiness in 2025
As integrated, holistic wellbeing solutions continue to gain momentum in the workplace, the importance of comprehensive support for employees’ financial wellness cannot be overstated. Recent studies show that nearly 60 percent of Americans now consider money management a core component of their overall self-care routines, while nearly half seek emotional support for financial stress at least once a month—accentuating the link between financial health and overall wellbeing. In addition, over a third of Americans use stress-relief activities as their primary strategy for coping with financial challenges, while two in five find that adhering to a clearly defined set of personal values is crucial for reducing financial anxiety and restoring peace of mind.
Thus, while traditional financial benefits like retirement plans and health insurance remain crucial for strengthening employees’ financial resilience, equally essential are holistic wellbeing benefits that seek to help employees:
- Identify and define their core values
- Set and achieve actionable goals that align with their values
- Adjust thoughts and behaviors to align with their goals
- Build effective coping mechanisms to address emotional, physical, and practical challenges
- Overcome negative thought patters and harmful habits
- Cultivate self-awareness and emotional intelligence
- Access additional resources for ongoing support
Financial support is a universal need, but the form this support should take varies widely by demographic—as the sources of financial stress differ by generation, region, household, and socioeconomic background. While Gen X is primarily focused on planning for retirement, for instance, Gen Z is understandably more preoccupied with paying down student debt and building savings, whereas Millennials—currently in the prime of their adult lives—are balancing a variety of concerns, from housing payments and childcare costs to managing unexpected expenses. Additional factors like location, family structure, and education can all further shape these financial needs, underscoring the need for personalized financial support.
By providing access to personalized financial coaching and integrated wellbeing support, employers can equip employees with the tools, knowledge, and skills they need to create realistic budgets, manage debt, build emergency savings, and develop comprehensive financial plans tailored to their individual needs. Support for their psychological and physical wellbeing not only ensures employees can better manage the symptoms of financial stress but empowers them to make sound financial decisions by improving their quality of life and enhancing their mental clarity.
Survey data indicates that even a single coaching session can lead to noticeable reductions in financial stress for up to 72 percent of participants. Creating a routine that aligns with one’s personal needs and values has also been shown to decrease anxiety, improve individuals’ relationship with money, and support long-term wellbeing. By connecting employees with experts who can assist with a range of concerns—from debt management to saving or financial planning—employers ensure that employees not only have access to vital financial tools like retirement plans but also possess the knowledge and skills to use them effectively.
Financial Wellness: A Strategic Investment in Employee Wellbeing
Financial stress is a significant barrier to productivity, engagement, and overall wellbeing. As National Employee Benefits Day reminds leaders, how they support their employees’ holistic wellbeing determines how effectively their employees can support them. Providing access to comprehensive and personalized financial wellness support isn’t just a sound benefits strategy; it’s also a sound engagement strategy. When employees have the tools they need to thrive in their personal lives, the impact is inevitably felt in their work, resulting in sharper focus, increased motivation, higher productivity, and a more engaged and innovative workforce.
As employees continue to be impacted by compounding financial concerns at the hands of an increasingly volatile and uncertain economic climate, how well employers can address these concerns will determine their ability to attract, retain, and engage top talent in 2025.
Ultimately, the most resilient, agile, and engaged workforces will be those that can continue to bring their full selves to work even in the face of life’s challenges. By eliminating distractions like financial stress and anxiety, employes lay the foundation for employees’ personal and professional success, driving better outcomes for the organization as a whole.
Ready to help employees achieve future-ready financial wellbeing in 2025? Contact Workplace Options today to find out more about our scope of services and how Work-Life Coaching puts employees on the path to financial wellness.
