Money stress doesn’t start and stop with payday—it lingers throughout the workday, weighing down focus, energy, and productivity.
From rising living costs to mounting personal debt, employees are under immense pressure, and it shows up at work.
According to Your Money Line’s 2025 Employee Financial Behavior Report, a staggering 61% of respondents said they feel constant financial anxiety. That’s more than half your workforce carrying invisible stress into every meeting, email, and decision. It’s no longer just a personal issue, it’s a business problem.
When people are worried about making rent, paying off medical bills, or choosing between groceries and gas, their performance suffers. They’re distracted in meetings. They avoid tough projects. They disengage.
Eventually, they may burn out or quit altogether—leaving your team scrambling and your budgets stretched. This financial stress bleeds into every corner of the workplace.
So here’s the question: what are you doing to support your team’s financial well-being?
In this post, we’ll break down exactly why financial wellness programs are a must-have employee benefit—backed by data, success stories, and actionable insights to help your organization build a stronger, more resilient workforce.
For a deeper dive into how HR teams can navigate employee financial stress, check out Your Money Line’s HR guide on supporting your workforce with practical, proven financial wellness strategies.
What Are Financial Wellness Benefits
Financial wellness programs are employer-sponsored initiatives that help employees manage money, reduce stress, and build long-term financial stability. They address the day-to-day financial concerns that often affect employee focus, morale, and productivity at work.
Common financial wellness benefits include:
- Personalized financial coaching: Employees receive 1:1 support from certified coaches to create custom plans for debt, savings, and overall money management.
- Retirement planning assistance: Programs help employees understand retirement options like 401(k)s and IRAs, and how to make the most of employer matches.
- Emergency savings programs: These provide a structured way for employees to build rainy-day funds through payroll deductions or employer contributions.
- Student loan repayment support: Employers help repay employee loans or offer refinancing assistance, reducing financial burden and improving retention.
- Debt management tools: Digital tools and coaching help employees consolidate debt, lower interest rates, and create payoff strategies.
- Educational resources and workshops: Employees gain access to apps, webinars, and expert-led sessions to build financial literacy.
With rising employee financial stress, companies are stepping up. For example, West Aurora Schools partnered with Your Money Line to provide staff with personalized financial coaching and tools to reduce money-related stress.
See more success stories on offering financial wellness benefits
11 Key Reasons Why Financial Wellness is a Must-Have Employee Benefit
1. Employees Are Stressed About Money and It is Hurting Productivity
Financial stress is quietly draining productivity across workplaces. According to PwC, 57% of employees say money worries cause them stress.
Your Money Line’s 2025 Employee Financial Behavior Report also found that financial concerns significantly or severely affect the mental health of 32% of employees. Think of it like a phone running multiple apps in the background. Battery life drains quickly, and performance slows.
Similarly, employees struggling with finances are mentally preoccupied, less engaged, and more likely to burn out. Yet many companies still treat this issue as invisible.
Workplace financial wellness programs address this head-on. By providing coaching, tools, and resources, these programs help reduce employee financial stress at the root.
When people feel financially secure, they perform better, stay focused, and contribute more consistently. For deeper insights, Your Money Line’s webinar on the 2025 report breaks down key findings and solutions companies can start using today.
2. Higher Employee Retention Means Lower Turnover Costs
Employee turnover isn’t just inconvenient, it’s expensive. A report from SHRM notes that employers often estimate the full cost of hiring a new employee—including recruitment, onboarding, training, and lost productivity—as being three to four times that employee’s salary.
For example, losing an employee earning $70,000 could result in costs of $210,000 to $280,000. Multiply that across multiple roles, and the financial impact becomes staggering.
Financially stressed employees are also more likely to leave. If another company offers better pay or financial benefits, struggling employees may jump ship whether or not they actually want to leave.
One of the key benefits of financial wellness programs is improving retention. Employees who feel financially supported are more likely to stay loyal to their current employer.
Reducing financial stress builds trust and satisfaction, making workers less likely to look elsewhere for relief.
READ MORE: How to Implement Financial Wellness Programs for Employees
3. Financial Stress Affects Employee Mental and Physical Health
Financial stress from home often follows employees into the workplace. Those struggling with money are significantly more likely to suffer from anxiety, depression, and even physical conditions like heart disease.
The link between financial stress and poor health outcomes is well documented, including findings published in the Journal of Social Science and Medicine, which highlight the deep impact of financial insecurity on both mental and physical well-being.
For employers, that means more sick days and rising healthcare costs—expenses that eat into margins and morale.
Investing in financial wellness isn’t optional anymore. It’s a smart, proactive move that protects both your workforce and your bottom line. Healthy finances lead to healthier employees, and healthier employees build stronger companies.
4. Employees Want This Benefit and Will Choose Jobs That Offer It
Financial wellness benefits are no longer a “nice-to-have”, they’re shaping where people choose to work.
As employees prioritize stability and long-term planning, financial coaching for employees is becoming a deciding factor in job selection.
According to the 2025 Employee Financial Behavior Report, 54% of workers are interested in financial coaching. In fact, nearly 7 in 10 employees say they are more inclined to stay with an employer that offers meaningful financial wellness benefits. That kind of loyalty stems from feeling supported, valued, and financially secure—something traditional benefits packages may not fully address.
Today’s workforce is weighing employee benefits and financial security more than ever. Companies that lead with these offerings build trust and attract talent in a competitive market.
5. People Make Better Decisions When They Are Not Worried About Money
When employees are constantly worried about money, it becomes harder for them to focus, process information, and make sound decisions. Financial stress limits mental bandwidth, making everyday choices feel overwhelming, even at work.
According to PwC, employees experiencing financial strain are nearly five times more likely to report that money problems distract them during the workday. This distraction affects everything from project planning to client interactions, creating avoidable risks and inefficiencies.
For example, if an employee is constantly worried about overdraft fees and overdue bills, they might feel overwhelmed and distracted at work. But after accessing a financial wellness program and working with a coach, they could build an emergency fund and gain confidence in managing their expenses.
That clarity translates into more thoughtful, proactive decision-making at work. Here’s what happens when money stress is off the table:
- Employees approach challenges with clearer thinking and fewer emotional responses.
- Day-to-day decisions become more strategic and less reactive.
- Teams experience better collaboration, fewer mistakes, and stronger outcomes.
Financially confident employees make better choices—for themselves and the company.
6. Financially Stressed Employees Take More Sick Days
When someone is lying awake at night worried about bills, debt, or how to make rent, it takes a toll on their body and mind. Over time, this leads to more sick days, reduced productivity, and disengagement on the job.
Many employees quietly suffer from stress-related health issues like insomnia, headaches, anxiety, and depression.
More sick days mean higher healthcare costs and additional strain on team dynamics. But there’s a solution. Financial wellness programs help reduce these burdens by providing proactive education, personalized guidance, and tools that promote financial clarity and confidence.
READ MORE: A Practical Guide on How Employers Can Build a Financially Literate Workforce
7. Employees Struggle with Retirement Savings and Need Employer Support
An employee in their early 60s with no retirement savings may feel stuck—too financially unprepared to retire, yet too overwhelmed to catch up. That feeling of being trapped can impact performance and morale.
Without clear guidance or the financial tools to prepare, people often put off retirement planning entirely.
Recent data shows that nearly 50% of U.S. households have no retirement savings at all. And among Baby Boomers approaching retirement, nearly two-thirds of those born between 1959 and 1964 are expected to fall short of the funds they need to retire comfortably, as per a study by the Retirement Income Institute.
This gap in retirement readiness is a growing concern for employers. Financial wellness programs can play a major role in helping employees take control of their retirement planning.
By offering personalized coaching, education, and tools, these programs give people the confidence to save and prepare for the future.
PPL, an energy company, saw real results after partnering with Your Money Line. Their employees received retirement-focused financial coaching, helping them reduce stress and improve their long-term planning. This led to greater peace of mind, more focused employees, and a stronger sense of financial direction across the workforce.
8. Financially Secure Employees Are More Engaged and Motivated
Financially stable employees are more likely to be focused, present, and proactive at work. When employees aren’t worried about paying bills or covering emergencies, they can give their full attention to their roles.
On the other hand, money stress creates distractions that affect decision-making, energy, and motivation.
For example, an employee dealing with overdue credit card payments might struggle to concentrate in meetings or avoid taking on extra tasks. They’re managing financial anxiety instead of thinking creatively or collaborating effectively.
Employers who invest in financial wellness programs create a workplace culture rooted in support and trust. That sense of security drives better engagement across the board.
According to PwC’s Employee Financial Wellness Survey, even small, incremental improvements in financial well-being can lead to meaningful boosts in productivity and engagement.
Financial wellness initiatives are a cost-effective way to improve morale and loyalty. When employees feel financially supported, they’re more likely to stay, grow, and contribute at a higher level. It’s a win-win for people and performance.
READ MORE: The Financial Implications of Employee Turnover
9. Companies with Financial Wellness Programs Attract Top Talent
Today’s job seekers are looking for more than just a paycheck—they want support for their financial lives.
As the cost of living rises and personal debt becomes more common, candidates are prioritizing benefits that help them build financial security. Financial wellness programs are becoming a key differentiator for companies looking to stand out in a competitive talent market.
Data from our Employee Financial Behavior Report shows that 55% of employees have delayed buying a home, while 40% have postponed starting a family due to financial strain. These are life-changing decisions, and job seekers are looking for employers who understand and offer solutions.
How can your organization become the employer people are excited to work for?
According to Gallup’s workplace research, employee benefits are among the top reasons people accept a new job.
Therefore, it’s important to offer comprehensive financial wellness programs. This helps to send a clear message: we care about your future. And that message helps attract high-quality talent who value stability, growth, and long-term support.
10. Financial Wellness Programs Strengthen Company Culture
A strong company culture is built on trust, support, and shared values. When organizations invest in financial wellness programs, they show employees that they care beyond just the job title and paycheck. This builds loyalty and creates a workplace where people feel genuinely valued.
Financial stress doesn’t just stay in someone’s personal life. It often affects how employees show up, communicate, and collaborate. For example:
- Tension from financial pressure can lead to shorter tempers or irritability.
- Worries about money may cause employees to withdraw or disengage.
- Team dynamics can suffer when stress leads to miscommunication or lack of focus.
- Resentment may grow if some employees feel unsupported during tough times.
On the other hand, when employees feel financially secure, they’re more present, collaborative, and optimistic. Financial wellness benefits help foster a culture of care, where people support each other and thrive together.
This kind of environment boosts morale, builds trust, and strengthens the bonds that turn coworkers into a team.
READ MORE: Empowering Your Workforce with Financial Education
11. Companies That Offer Financial Wellness Programs Save Money
Employee financial stress usually starts as a personal issue then expands into an overall business problem. Disengaged, distracted, and financially burdened employees are more likely to miss work, underperform, or even leave altogether. This loss in productivity and higher turnover hits the bottom line.
According to SHRM, employee financial stress costs U.S. companies over $180 billion each year in lost productivity, absenteeism, and healthcare expenses. That’s a major drag on profitability, especially for growing organizations.
Financial wellness programs are a smart investment. When employees have access to coaching, tools, and resources to improve their financial health, they’re more focused, efficient, and engaged at work.
Curious how much your company could save by supporting employee financial wellness? Try Your Money Line’s ROI Calculator to see your potential return in real numbers.
By addressing employee financial stress head-on, companies reduce costs while building a healthier, more productive workforce. It’s a win-win that makes financial sense and boosts team performance.
Why Financial Wellness Programs Belong in Every Workplace
With employee financial stress on the rise, companies that act now are the ones building resilient, high-performing teams.
Providing your workforce with the right tools, coaching, and resources leads to real results such as stronger morale and lower turnover. When employees feel financially confident, they bring more focus, energy, and commitment to their roles.
Ready to see what financial wellness could do for your team?
Contact Your Money Line to explore a tailored solution that fits your workforce’s unique needs. Take the next step toward a healthier, more productive workplace.
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