Employers Finding Enhanced Roles in Employee Financial Wellness

Employers are expanding financial wellness benefits to support employees amid rising costs and financial stress, driving engagement and retention.

In a 2024 focus group of employee benefit brokers, a large majority (80%) reported their employer clients had increased investments related to employee wellness. While “wellness” is a broad term spanning many areas, one aspect in particular — financial wellness — has employers exploring new ways to support and strengthen their relationships with employees.

Inflation has been tough on employees across the spectrum, yet financial stress affects more than just their bank accounts: Their mental and emotional health, as well as performance at work, can all be impacted.

As key stewards of workplace culture and benefits, recent insights from benefit brokers suggest today’s HR leaders will likely play a more significant role in supporting employee’s financial health.

Changing Ideas About Financial Wellness

When a 2024 workplace wellness survey by the Employee Benefit Research Institute examined worker attitudes toward employment-based benefits, it showed broad agreement that employers have a responsibility for the mental, physical, and financial health of employees.

When asked about their financial health, half of respondents expressed at least moderate concerns about their financial well-being. These sentiments align with TransUnion’s ongoing consumer research, which has tracked public concerns around inflation and household spending for several years.

According to TransUnion’s findings from employee benefit brokers, the top reason employers offer financial wellness benefits is to help employees mitigate financial stress — followed by helping navigate high living costs and addressing gaps in financial literacy.

It seems employees and employers alike are expanding their views of the employer’s role in financial wellness support.

Financial Wellness Challenges Facing Employees

TransUnion’s ongoing research highlights several realities driving increased demand for employer-supported financial wellness programs:

  • High cost of living: Rising inflation and housing costs make saving difficult across all income levels.
  • Debt management: Student loans, credit cards, and other obligations reduce financial stability.
  • Identity theft and fraud risks: The digital economy increases exposure to fraud with lasting emotional and financial effects.
  • Lack of financial literacy: Many employees lack the knowledge to make informed decisions about budgeting, saving, and investing.

As these challenges grow, employers have a clear opportunity to support their workforce with relevant, accessible financial wellness solutions.

Promoting Financial Wellness Beyond the Paycheck

Organizations are increasingly seeking to expand benefits in ways that offer practical financial tools to employees. Promising areas include:

  • Credit information and education: Giving employees access to credit scores and educational programs supports smarter borrowing, budgeting, and debt management.
  • Identity security and fraud protection: Services like credit monitoring, fraud alerts, and personal security education help protect employees’ financial data and peace of mind.
  • Financial coaching and counseling: Personalized coaching helps employees plan budgets, manage debt, and improve financial confidence through expert guidance.
  • Financial wellness dashboards: Interactive platforms provide tools and data that help employees track and improve financial decisions with greater clarity.
  • Payroll-based savings programs: Automated paycheck deductions simplify saving, boosting financial preparedness with minimal effort.

Financial Wellness Matters to Employers, Too

Supporting financial health goes beyond altruism—it benefits businesses as well. Research shows that:

  • 84% of employers believe financial wellness programs reduce employee attrition.
  • 91% report higher employee satisfaction when such benefits are provided.

As expectations around workplace benefits evolve, employers that prioritize financial wellness will strengthen retention, attract top talent, and cultivate a resilient workforce culture. A holistic approach that addresses financial, mental, and physical health signals a modern, human-centered employer brand.

By proactively addressing financial wellness, employers can boost performance, strengthen loyalty, and reinforce their role as champions of employee success.

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