Employees with money worries? Financial wellness to the rescue

Employees are in financial distress, with 73% of employees concerned about affording basic necessities and more than half of employees feel this anxiety daily. Without employer intervention, this stress can result in a loss of over eight hours of productivity a week. This stress, compounded by a challenging economy, significantly affects employee focus, morale, confidence and work quality.

This data isn’t surprising but should be a sobering reminder of how financial burdens impact how employees show up at work. When raises aren’t feasible, financial wellness programs can help bridge the gap between wages and employees’ financial needs. We talked to Tate Hackert, President and Co-Founder of ZayZoon, about how financial wellness benefits, coupled with financial education, can offer private and accessible resources for employees who may not want to disclose their financial struggles.

Q: Why are so many employees in financial distress?

A: Financial stress is an epidemic that has affected employees for years, driven by inflation, wage stagnation and a challenging job market. As wages keep falling behind the rising cost of living, it’s becoming harder for employees to hide their financial stress at work.

Employees aren’t worried about discretionary spending. They’re stressed about putting food on the table, having a place to live and other essential needs. In fact, new data shows that 73% of employees’ biggest financial concerns are their necessities, including bills, rent and groceries.

Q:  How do financial burdens impact employees’ performance at work?

A: When employees face financial hardships due to essential costs, it’s no surprise that stress bleeds into their workday. These employees are focused on making ends meet outside of work, which can severely impact their ability to remain productive and engaged in the workplace. Data shows both employees and HR leaders recognize that financial stress distracts from work, impacting an employee’s ability to focus, lowering their morale and damaging their work quality. Financial burdens can make employees feel like they’re drowning, limiting their ability to bring their authentic selves to work and hurting their ability to contribute meaningfully to their teams.

Q: What are recommended financial wellness programs that can have an impact on employees?

A: Managing personal finances can feel overwhelming for employees, but employers can be a strong a source of reliable information – especially since much of an employee’s financial life is tied to their job. Before rolling out a new financial benefit, business leaders take the time to understand what their teams really need. The best way to determine those needs is by leveraging survey tools and one-on-one feedback to get started. Modern benefits like Earned Wage Access (EWA) or Emergency Savings Accounts (ESA) can help address short-term cash flow issues, offer financial flexibility and provide employees anonymity as they deal with hardships. On the other hand, some workforces may benefit from long-term financial education or external professional guidance.

When employers understand their employees’ biggest financial stressors, they’ll know how to create a meaningful program that addresses their needs – going beyond standard benefits that just check a box.

Q: Why is financial education so important to offer employees?

A: Financial education won’t solve employees’ hardships overnight, but it is a step in the right direction. Employers have a valuable opportunity to offer trusted resources, helping employees avoid unreliable online advice or predatory solutions that could worsen their situations. By carefully vetting benefits and resources, organizations empower employees to make informed financial decisions – whether through financial workshops, budgeting apps, retirement planning help or savings options.

Q: How can employers combat financial stress in the workplace?

A: The first step is for organizations to determine which financial wellness programs or benefits best fit their workforce’s needs. Some organizations may need a full suite of resources, while others may just need one or two targeted options to support employees manage their financial health.

Related: The future of financial wellness benefits: What trends employers can expect in 2025

Once employers decide which solutions to implement, it is essential to bring consistent awareness to the new offering. Leaders or HR teams should share clear and concise information on how employees can access new benefit offerings or wellness programs.

Managers can also bring up these tools during one-on-ones to help create an open culture that makes employees feel comfortable to ask questions if a financial crisis comes up. Employers should make an effort to provide tools that empower employees to better their financial health while fostering a culture where employees feel supported without pressure to share personal finance details.