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 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 track with TransUnion’s quarterly consumer research — which revealed ongoing public concerns around inflation and household spending for several years.
TransUnion’s findings from employee benefit brokers indicated the top reason employers offer financial wellness benefits is to help employees mitigate financial stress. This is followed by the need to help navigate the high cost of living and address a lack of education on financial well-being topics.
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 consumer research points to several current realities driving an increased demand for employer-supported financial wellness programs.
- High cost of living. Inflation and rising housing costs put financial pressure on employees at all income levels, making it harder to save for emergencies or retirement.
- Debt management: Many employees struggle with student loans, credit card debt and other financial obligations, impacting their financial stability.
- Identity theft and fraud risks: The digital landscape increases exposure to identity theft and fraud, which can have lasting financial and emotional consequences for employees.
- Lack of financial literacy: Many employees lack the necessary financial knowledge to make informed decisions about budgeting, saving and investing for the future.
As these financial challenges continue to evolve, employers have an opportunity to support their workforces with financial wellness offerings that address these concerns.
Promoting financial wellness beyond the paycheck
Many organizations are looking for ways to expand workplace benefits beyond traditional offerings. What’s particularly exciting in the area of financial wellness is there are many cost-effective tools available for employees looking for additional resources. These include:
- Credit information and education: Providing employees with access to credit information empowers them to understand and better manage their financial health. Credit education programs help employees make informed decisions about borrowing, managing debt and improving their credit standing — key factors that affect their overall financial well-being.
- Identity security and fraud protection: Financial fraud and identity theft are unfortunate realities in today’s digital economy. Employees can benefit from tools that help them monitor and protect their personally identifiable information, including credit, financial and payment card details. Identity monitoring services, fraud alerts and security education help keep employees safe.
- Financial coaching and counseling: Financial coaching resources can provide employees personalized guidance on budgeting, debt repayment strategies and long-term financial planning. Offering access to outside financial professionals can help them build confidence in managing their money and making informed financial decisions.
- Financial wellness dashboards: Financial wellness platforms can empower employees to better manage their finances by putting practical information and engaging, interactive tools that strengthen their knowledge at their fingertips.
- Payroll-based savings programs: Some organizations offer structured savings programs that allow employees to set aside funds directly from their paychecks. Having a “set it and forget it” option makes saving convenient, helping both their financial preparedness and peace of mind.
Financial wellness matters to employers, too
Supporting financial wellness isn’t just beneficial for employees — it also drives meaningful outcomes for employers. Data shows 84% of employers believe offering financial wellness tools can help reduce employee attrition. What’s more, 91% said they see higher employee satisfaction when they provide resources dedicated to promoting overall well-being.
As the workplace evolves, financial wellness will continue to play an integral role in employee well-being strategies. A shift toward holistic well-being — encompassing financial, physical and mental health — aligns with broader trends of employees expecting more from their employers in terms of support and benefits.
By proactively addressing financial wellness, employers will not only improve employee outcomes but also position their organizations as forward-thinking, desirable workplace destinations. By integrating financial wellness into the broader benefits ecosystem, companies can build more stable and resilient workforces and create cultures that prioritize long-term employee success.
Shelby Gartner is Vice President of Broker Partnerships at TransUnion. Learn more at www.transunion.com.
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