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Benefits November 3, 2025
Financial Wellness Programs Can Help Improve Employee Performance
Employers are increasingly looking for programs and offerings to support multiple financial goals.
Reported by Kelli Korducki
Art by Melinda Beck
Financial well-being is about more than a sense of peace and security. Ample research shows that a lack of financial stress is directly linked to improved mental and physical health outcomes—and vice versa.
The adverse effects of financial anxiety have direct implications for workers and the organizations they serve. A 2024 report from the TIAA Institute and consulting firm High Lantern Group found that 42% of U.S. adults say money takes a toll on their mental health, with financial stress contributing to a 34% rise in missed work and lateness. The report also found that workers under financial strain are five times more likely to be preoccupied with money matters while working and tend to take roughly twice as many sick or personal days as those who are not financially stressed.
Companies are taking note.
“Employers are prioritizing financial wellness because employee financial stress can lead to performance issues that directly impact productivity, recruitment and retention,” says Kevin Gaston, head of strategic retirement consulting at Vestwell. “As a result, employers are increasingly seeking integrated solutions that reduce confusion, simplify decisions and support multiple financial goals from a single experience.”
Understanding Financial Stressors
Although financial stress is not strictly a product of low income, earnings do matter. Columbia University public health researchers found that even an additional $5,000 per year can measurably extend the length and quality of a person’s life, while lower individual earnings have been shown to correlate with greater psychological distress.
Beyond income, however, the ability to save for emergency life events, future goals and retirement are vital in preserving a sense of financial well-being. For many of today’s workers, debt burdens can get in the way. The Employee Benefit Research Institute’s 2024 Workplace Wellness Survey found that 80% of U.S. workers hold non-mortgage debt; one-quarter said they have at least $10,000 in credit card debt alone.
Jamie Sieja, director of marketing at Flex HR, points out that many larger companies have long offered financial planning advice as a benefit through their organization’s 401(k) retirement plan providers. However, Sieja notes that access to these benefits was often not explained to employees, who, in turn, often did not take advantage of them. But that is beginning to change. Sieja observes that in recent years, employers have taken a more proactive approach, with small and midsize companies joining the ranks of larger organizations in prioritizing financial guidance for their workforces.
“Typically a company will partner with a financial organization that will offer free webinars to help employees feel more confident about money management decisions at different stages in life, and then offer one-on-one sessions for further advice,” Sieja explains. She sees these initiatives as part of a broader, growing effort toward holistic worker-wellness support. “In 2026, we expect the push for financial coaching, physical health coaching, mental health coaching and social coaching wellness programs to be not just an added bonus, but essential for retaining staff.”
A Customized Approach
As workforce needs evolve, employers are recognizing the value of providing financial-support benefits that can meet a range of employee circumstances.
“Employees are not one-size-fits-all, and their savings options shouldn’t be either,” says Gaston. “Tailored financial guidance considers each employee’s life stage, income, household needs and financial priorities. It goes beyond generic education, whether delivered by an adviser or through a platform, to reflect a person’s full financial picture.”
Tools that help employees determine where their “next best dollar” should go are becoming essential to driving confidence and sustained participation in workplace benefits, Gaston says.
“While retirement plans are now widely expected, the real growth frontier is this expanded view of holistic savings: student-loan repayment, emergency savings accounts, education savings like 529s, health savings accounts, disability savings and more,” Gaston says. “A modern benefits strategy meets people where they are and supports their financial well-being across all stages of life.”
The SECURE 2.0 Act of 2022— designed to boost Americans’ retirement savings—has further pushed employers to expand and modernize retirement benefits. Student loan repayment plans particularly have gained ground, with the International Foundation of Employee Benefit Plans reporting that 14% of organizations offered a student-loan repayment program in 2024, up from only 4% in 2019. These kinds of benefits “help employees manage short-term financial pressure while building a path toward long-term retirement security,” says Gaston.
Employers see the difference firsthand. Noreen King, the CEO and founder of Evolve Manufacturing, began offering her 60 employees emergency savings accounts in 2021. The program lets employees automatically defer a small portion of each paycheck—as little as $10 to $50—into a personal savings account managed through SecureSave. King says the company matches up to “$10 or $20” of each employee contribution. Unlike a 401(k) retirement plan, the money is accessible at any time, so employees can use it for emergencies, travel or other needs without facing tax penalties or paperwork.
King has seen her company’s ESA benefit help workers handle unexpected expenses, like travel for a family emergency or car repairs, without financial strain. For some, the experience has been eye-opening.
“People started saving without noticing it, and since then, they’ve really been very happy with how much they’ve amassed over time,” she says.
