30+ Employee Financial Wellness

Lack of retirement funds, high debt, and no emergency savings are the main reasons for implementing employee financial wellness programs. More and more employees are using employer-provided services to help them with their finances. The statistics below highlight the benefits that workers and organizations have from financial wellness programs.

The cost of financial stress

  • Personal finances are the most significant stressor for nearly half of employees (46%) (PwC, 2017) 
  • The cost of financial stress on an organization adds up to more than $1,900 per employee per year (JohnHancock, 2019) 
  • On average, people spend 13 hours per month worrying about personal finances at work, causing a loss of productivity (Mercer, 2017) 
  • 30% of employees are distracted by their personal finances at work (PwC, 2017) 
  • 5% of employees have missed a day or more in the last six months due to financial stress (JohnHancock, 2019) 

Employee demographics

  • Financial wellness and income are not directly linked, which means that difficulties can occur at any economic level (Mercer, 2017) 
  • Both men and women chose the same top five financial wellness programs (Enrich, 2020) 
  • Financially stressed employees are more likely to be younger and female (PwC, 2017) 
  • Minorities report lower financial wellness and increased financerelated stress (Financial Finesse, 2017) 
  • 41.3% of respondents said they feel somewhat or entirely financially well (Enrich, 2020) 

Employers benefit from financial wellness

  • 59% of workers with access to financial wellness benefits report being somewhat or extremely satisfied with their employers’ offering (Prudential, 2019) 
  • 64% of employers say financial wellbeing has gained more importance over the last two years (Alight, 2019) 
  • Employers are focused on four stages of financial independence- security (35%), foundation (56%), growth (8%), and freedom (1%) (Alight, 2019) 
  • 88% of employers say they currently have or are developing a financial wellbeing strategy (Alight, 2019) 
  • 44% of employees believe their employer cares about their financial wellbeing (PwC, 2019) 
  • 71% of employees have used employer-provided services to help them with personal finances (PwC, 2019) 

Financial wellness improves employee performance

  • Seven in ten employees feel financial wellness programs helped reduce stress and increased loyalty to their employer (JohnHancock, 2019) 
  • After improving employee financial wellness, the average number of unplanned absences fell by 24% ( SOA, 2017) 
  • 44% of workers with access to financial wellness benefits are highly optimistic about their financial future, versus 32% of those without access (Prudential, 2019) 
  • Users of financial wellness programs report better mental health, lower stress, and better physical health than non-users (Prudential, 2019) 

Most desired financial help

  • 60% of respondents said they are not financially well and that they could benefit from better financial wellness (Enrich, 2020) 
  • 46% of employees want help with debt management (PwC, 2016) 
  • Some financial wellness benefits that employees would like to have that are not available are identity theft protection, after-tax emergency savings accounts, and financial coaching services (Prudential, 2019) 
  • One in four employees agree that the most desired employer benefit is a financial wellness benefit with access to unbiased counselors (PwC, 2019) 
  • Considering that the top financial concern for employees is not having enough emergency savings, more financial wellness programs need to focus on building that (PwC, 2017) 

Defining financial wellbeing and wellness programs ​

  • Employees define financial wellness as being stressfree (34%) and being debtfree (18%) (PwC, 2019) 
  • The definition of financial wellbeing is described as being able to meet current and ongoing financial obligations, feeling secure in your financial future, and being able to make choices that allow you to enjoy life (CFPB, 2015) 
  • The most popular financial wellness offerings are 401k matching (64%), health savings account (37%), and tuition reimbursement (32%) (Enrich, 2020) 
  • The top reported benefits from a financial wellness program are preparing for retirement, help control spending, and pay off debt (PwC, 2017) 
  • Only 18% of employees feel very confident in their ability to make the right financial decision (JohnHancock, 2019) 

The benefits of financial wellness programs significantly outweigh the costs of such programs, so having such program in place is vital to businesses and employees.