Making Cents of Financial Wellness

As many employers are aware, healthcare costs and saving adequately for retirement remain two of the most pressing financial challenges facing Americans today, regardless of income level. 

For employees, health and finances are deeply intertwined.

As employers seek to build trust and form lasting relationships with their workforce, financial wellness programs have moved from a “nice to have” benefit to an expected component of  a comprehensive employee benefits strategy. 

The Growing Financial Strain on Today’s Workforce 

Financial stress among American workers is significant and persistent. Recent research shows that 72% of U.S. workers report feeling stressed about their household finances, and one-third say they are very or extremely stressed. 

Yet for many employees, the challenge extends beyond day-to-day budgeting. Findings from OneDigital’s Employee Value Perception Study reveal deeper financial vulnerability: 

• 57% of employees say they could not handle a major unexpected expense. 
• 35% worry about falling behind on debt payments. 
• 55% say they do not know exactly where their retirement income will come from. 
• Even among executives, 40% share the same uncertainty about retirement income. 

These numbers illustrate a growing financial confidence gap across the workforce. 

Financial pressure is also leading employees to consider decisions that may jeopardize their long-term financial security. According to the same study, one in four employees say they are considering taking a loan from their retirement savings account, a move that can trigger taxes, penalties, and long-term loss of compounded savings. Among executive-level employees, that figure rises to 36%, underscoring that financial stress affects employees across income levels. 

At the same time, broader national data shows that more than half of employees report living paycheck to paycheck, while rising costs continue to erode savings. Financial worries remain one of the most significant contributors to employee stress and distraction at work. 

Countless studies confirm that financial concerns affect both personal wellbeing and workplace performance. Employees experiencing financial stress are more likely to struggle with concentration, productivity, and engagement on the job. 

Not only does stress have a significant impact on health and wellbeing, but the distraction and worry associated with money matters contribute to lost productivity. Research highlighted by Forbes estimates that financial stress costs employers more than $200 billion annually in lost productivity and related business impacts. 

According to David Griffin, SVP, Atlanta Retirement Partners, OneDigital, the average American worker is woefully underprepared in the world of personal finance. 

The root of the problem is both societal and educational. Discussing salaries, debt, or retirement savings often ranks among the most taboo topics to discuss with peers. As a result, many individuals develop money habits, both good and bad, based largely on what they observed growing up. 

When you reflect on high school and college education, how much personal finance instruction did you receive? For most Americans, the answer is very little. In today’s competitive labor environment, helping employees build financial literacy and confidence benefits both the employee and the employer. 

Many employers ask what the long-term return on investment (ROI) is for financial wellness programs. While the ROI can be difficult to quantify precisely, the impact is significant. Financial stress is pervasive, and stressed employees are less likely to perform at their best. 

Fortunately, employers have more options than ever to support employee financial wellbeing. Modern financial wellness platforms combine technology with live financial counselors, offering scalable solutions that are accessible and cost-effective. Some employers also provide student loan repayment assistance, emergency savings programs, and personalized financial counseling with multi-year planning strategies. 

The “right” design depends on workforce demographics and organizational goals. Capable advisory teams can help employers evaluate strategies and implement programs effectively. Critically, employers must also measure outcomes to ensure these programs deliver meaningful value. 

How Employers Can Help Reduce the Stigma 

Acknowledging financial stress as a major contributor to low engagement and productivity has led many employers to adopt a more holistic approach to employee wellbeing. 

Financial wellbeing is increasingly recognized as a key component of overall employee wellness. 

This shift has encouraged employers to support employees more comprehensively, offering benefits and programs that address a wide range of life challenges. These may include fertility and adoption support, career counseling, enhanced employee assistance programs (EAPs), childcare resources, and even meal delivery services during times of need. 

Before celebrating being among the many employers offering financial wellness programs, organizations should ask themselves an important question: Are we getting the most value from these investments? 

Two critical questions can help guide that assessment. 

Do Your Employees Value the Services You Offer? 

Many organizations focus heavily on retirement benefits. However, financially stressed employees often struggle to prioritize long-term savings. 

In fact, OneDigital’s Employee Value Perception Study highlights the challenge clearly: more than half of employees say they are unsure where their retirement income will come from, and one in four are considering tapping their retirement accounts early. These trends suggest that employees may need more immediate financial support and education before they can fully engage in long-term savings strategies. 

Understanding your workforce demographics is critical. Younger employees may place higher value on student loan repayment programs or emergency savings support, while mid-career employees may prioritize financial planning and debt reduction strategies. 

Equally important is communication. Employees often learn about benefits during open enrollment, when they are already overwhelmed with complex healthcare decisions. As a result, many employees remain unaware of the full value of their benefits package. 

If your company offers retirement matching contributions, tax-advantaged savings vehicles, or financial coaching services, these benefits should be communicated year-round, not just during open enrollment. 

Are Your Programs Aligned with Your Long-Term Business Strategy? 

Financial wellness benefits should also align with broader workforce goals. 

If your organization is focused on improving retention and building long-term tenure, strengthening retirement benefits and long-term savings programs may deliver the greatest value. 

If you 're focused on recruiting early-career talent, student loan assistance programs or emergency savings benefits may provide a stronger competitive advantage. 

Employers should regularly analyze workforce demographics and identify the financial challenges employees are facing today. With that understanding, organizations can develop a multi-year benefits strategy that evolves alongside employees as their financial needs change. 

Best Practices for Creating a Culture of Financial Wellness 

With economic uncertainty, inflation, and rising healthcare costs continuing to challenge employees’ financial stability, employers have an opportunity to demonstrate meaningful support for their workforce. 

Financial wellness programs represent the next generation of workplace benefits, helping employees navigate the intersection of health, wealth, and retirement. 

Forward-thinking employers are expanding financial wellness support to address all stages of life and career. These solutions may include: 

• Emergency savings programs 
• Small-dollar loan programs to prevent 401(k) withdrawals 
• Student loan repayment assistance 
• Tuition assistance programs 
• Budgeting tools and digital financial planning platforms 
• Health Savings Accounts (HSAs) 
• Paid parental leave and family support benefits 

Among all financial wellness benefits, one consistently rises to the top in terms of value: education. 

Improving financial literacy through unbiased, one-on-one financial counseling can have a transformative impact. Personalized guidance helps employees develop strategies tailored to their individual goals, whether that’s paying down debt, saving for a home, or planning for retirement. 

However, employers should carefully vet financial wellness partners. Institutions that offer services “for free” may have sales-driven incentives that could conflict with employees’ best interests. 

Employers seeking to optimize benefits investments, especially in an environment of rising healthcare costs, inflationary pressure, and higher interest rates, must take a strategic and data-driven approach. 

Understanding what employees truly value and providing targeted support can help organizations improve engagement, strengthen financial resilience, and build a healthier, more productive workforce. 

Understand What Your Employees Actually Value 

Financial stress is not always visible, but its impact on productivity, engagement, and retention is significant. 

The first step toward building a more effective financial wellness strategy is understanding what your employees need most, where gaps exist, and how your current benefits are performing. 

Explore insights from OneDigital’s Employee Value Perception Study to better understand workforce expectations and identify opportunities to strengthen your benefits strategy.