Executive Summary

Workforce expectations are evolving. Younger generations are entering the labor market with unprecedented financial pressures (student debt, high housing costs, uncertain retirement security) and they expect more from employers than a paycheck. Traditional benefits like health insurance and retirement savings are no longer enough. Employees now seek holistic financial wellness support, including access to education, planning, and counseling.

According to Bank of America’s 2025 Workplace Benefits Report, nearly 1 in 4 employees (24%) have left or considered leaving an employer due to inadequate benefits, up from 15% just two years ago. As employers compete for scarce talent, financial wellness programs represent both a retention strategy and a productivity booster.

This white paper explores the business case for financial wellness, outlines the benefits to employees and organizations, and offers best practices for implementation.

Introduction: The New Employee Value Proposition

• Financial insecurity is widespread. Over 85% of U.S. workers carry some form of debt; 56% hold credit card balances, and 24% have student loans.

• Younger workers face unique pressures. Millennials and Gen Z are more likely to be juggling student debt, stagnant wages relative to inflation, and uncertainty about Social Security’s long-term viability.

• Traditional retirement support is insufficient. A 401(k) plan, while important, doesn’t solve the immediate stressors employees face in budgeting, debt management, or emergency savings.

In this environment, employees evaluate employers not just on salary but on their ability to support financial well-being across life stages.

Why Financial Wellness Benefits Matter

1. Retention and Recruitment

• Competitive differentiator. Financial wellness benefits are now a top-five priority for employees when evaluating job offers.

• Turnover prevention. Employers risk losing younger workers to competitors who provide comprehensive support.

2. Productivity and Engagement

• PWC data show financially stressed employees spend an average of three work hours per week distracted by money concerns.

• Alleviating financial stress frees up mental energy, improving focus, morale, and innovation.

3. Holistic Well-Being

• Financial health is directly tied to mental health.

• Offering these programs signals an employer’s commitment to treating employees as whole people.

What Employers Are Offering Today

Leading practices include:

• One-on-one financial counseling: Access to certified financial planners or educators for personalized advice.

• Workshops and webinars: Covering budgeting, debt management, investing basics, and retirement readiness.

• Digital tools: Budget trackers, savings calculators, and debt-payoff apps.

• Student loan repayment support: Direct contributions or refinancing options.

• Emergency savings programs: Payroll deductions into employer-sponsored accounts.

• Family-oriented benefits: Tools like Greenlight debit cards for children or resources to help employees manage aging parents’ finances.

Case Studies

• MasterControl: Provides quarterly financial education sessions and confidential counseling, improving benefit utilization rates.

• Evolve Manufacturing: Introduced employer-sponsored emergency savings accounts; 75% of employees enrolled.

• Bank of America Report (2025): Employees with access to financial wellness programs report higher satisfaction with their employer and greater confidence in their financial future.

Business Case / ROI

Employers implementing financial wellness programs can expect:

• Reduced turnover costs (estimated at 50–200% of annual salary per departing employee).

• Higher productivity by reducing hours lost to financial distractions.

• Greater benefits engagement (e.g., higher retirement plan contributions).

• Improved employer brand in competitive talent markets.

Best Practices for Implementation

1. Start with assessment. Survey employees to understand needs (e.g., debt reduction vs. retirement planning).

2. Offer tiered solutions. Combine digital self-service tools with human advisors for depth and scale.

3. Ensure confidentiality. Employees must feel safe accessing support without employer oversight of personal finances.

4. Measure outcomes. Track usage, retention, productivity, and satisfaction to demonstrate ROI.

5. Communicate consistently. Promote resources so employees know they exist and understand their value.

Conclusion

Financial wellness is no longer a “perk”—it is a strategic necessity. By addressing employees’ financial stress, employers not only support individual well-being but also unlock stronger engagement, loyalty, and productivity. As younger generations reshape workplace expectations, financial wellness programs will increasingly define which employers win the war for talent.

Employers that invest in financial wellness today are building the resilient, loyal, and future-ready workforce of tomorrow.