How To Foster Employee Financial Wellbeing

Amid global inflation and economic fluctuations, the cost of living continues to increase around the world. The price of housing, groceries, child care, college tuition, and more basic expenses climb, as wages for the average employee remain flat.

Pile on concerns about when, or even if, retirement will be possible and you’ve got a recipe for rising employee stress and insecurity.

All of these external factors are outside of individual control, but people can influence how they respond – if they have the financial education and resources to navigate the economic uncertainty. However, McLean’s HR Trends Report 2025 reveals that financial wellbeing is ranked 6/6 for areas receiving new investments, according to People professionals surveyed.

This is a massive opportunity for employers to expand support and directly improve the employee experience.

First, I’ll review some definitions and explain how financial wellbeing supports overall employee health and a better employee experience. Then, I’ll explore some of the actions People teams can take to enhance financial wellbeing.

As an added bonus, I’ve created a step-by-step guide to creating an employee financial wellbeing strategy, which you can download, share with your team, and print as needed.

What is financial wellbeing?

Financial wellbeing is largely about security – having the knowledge and resources to manage one’s current and future financial commitments. It also includes having the freedom to make choices and enjoy life without constantly worrying about money. For many, financial wellbeing means stability, confidence, and control.

Improving employees’ financial wellbeing supports employee health. It mitigates the negative impact of external factors by providing the tools they need to tackle their biggest financial concerns.

People leaders have been aware of the threat to employee wellbeing for some time, and now, according to McLean, 70% of survey respondents report economic uncertainty as a major threat to employee wellbeing.

Strategies to support employee financial wellbeing

A lot of the stress employees feel from financial insecurity is likely, and understandably, linked to how little control they have over broader economic conditions. But, when equipped with the right knowledge and resources, employees can feel more in control of their financial present and future, alleviating some of that stress. 

Financial stress impacts almost 80% of employees, but just 28% of employers have financial wellness programs to help them.

Here are just some of the tools and resources employers can offer to foster financial wellbeing:

• Retirement savings, health savings accounts, and emergency savings accounts
• Flexible spending accounts, stipends, and expanded PTO to help employees better meet their needs and balance personal obligations with work responsibilities
• Student loan repayment strategy, deferment information, and payment assistance
• Individual tax strategy and resources for tax planning and preparation
• Retirement savings planning and support (Bonus points for matching contributions!)
• Information on investment options and access to investment planning services

Many companies provide these supports in a variety of different ways, and a mixture is generally the most successful approach. Administer programs employees can opt into, host educational events (often online, with live and recorded options), provide a virtual library of on-demand resources, and connect employees with opportunities to speak with professionals for questions and ongoing guidance.

All of these efforts translate to tangible, meaningful support that helps employees take charge of their money and empowers them to work toward their financial goals.

Additional advantages of investing in financial education

In addition to reducing financial stress, investing in employee financial wellbeing can support employee engagement and retention. When people feel secure in their financial circumstances, and confident that they can manage their debts while planning for their future, they may be less likely to change jobs.

If they feel their employer is actively invested in their individual financial success, they may feel more motivated to work hard and produce results that benefit the business.

Employers that add or expand financial education and resources can also bolster employer branding, which enhances recruitment marketing and helps the organization compete for top talent.

In a report from the American Staffing Association, 40% of US workers said their debt influences their career decisions. Offering debt assistance and savings programs may make your job offers more attractive than competing employers who don’t.

A competitive advantage through financial wellbeing

Investing in employee financial wellbeing is more than just a benefit – it’s a strategic advantage. 
By providing financial education, resources, and support, employers can help reduce stress, improve engagement, and foster long-term loyalty.

As economic uncertainty continues, organizations that prioritize financial wellbeing will not only enhance the employee experience but also strengthen their employer brand, making them more competitive in attracting and retaining top talent.

Now is the time for People teams to take action and turn financial wellbeing into a cornerstone of their workplace strategy.

Download your step-by-step guide!