Financial Wellness Benefits: 4 Best Practices for Managing Today’s Top Benefit

Physical and mental health have been a priority for years. Now, a growing priority for many employees is this: Financial wellness benefits.

After all, 57% of employees say finances are the top stressors in their lives. And among those who are stressed about finances, 44% of them say they’ve often been distracted by these worries at work.

The majority of HR professionals agree, with 83% of them worrying that financial concerns affect workplace productivity.

Employers Focus on Financial Wellness Benefits

In order to get the best out of their people in today’s age of financial instability and inflation, organizations need to provide financial wellness benefits that will help lower their stress and provide peace of mind.

This is especially true because the financial benefits are even more desirable to younger generations of workers, with 95% of Gen Z workers wanting more assistance and 87% of millennials feeling the same way.

Common Financial Stressors and Desired Financial Benefits

According to research by Morgan Stanley at Work, the three main priorities for employees in 2025 are:

• Building up personal savings (50%)
• Investing for long-term future wellness (47%), and
• Paying down debts (43%).

In addition to this, 90% of employees believe workplace financial benefits are essential to hitting their personal finance goals, and the top three desired benefits are:

• Help preparing for retirement (55%)
• Help with financial planning (53%), and
• Maximizing equity compensation (34%).

Benefits of Investing in the Financial Wellness of Employees

Investing in the financial wellness of employees isn’t simply a desire that businesses might provide to their employees. The ROI of this extra investment can be huge. Here’s why:

• 90% of employees would feel more invested in staying at their company if they received financial benefits that fit their needs
• 91% of organizations see higher employee satisfaction when offering financial wellness benefits, and
• 84% of organizations say that offering wellness tools helps reduce attrition.

Best Practices for Providing Financial Wellness Benefits

In these days of financial stress, it’s up to organizations to take advantage of the competitive advantage of financial wellness benefits. Here are some strategies to do so.

1. Offer Financial Coaching for Present-Day Needs

If building up personal savings is employees’ number one concern, your first benefit should help tackle that worry. Offer seminars, workshops, one-on-one coaching or other avenues of helpful advice to guide employees on their financial journeys.

Guidance for how to save, invest, budget and develop healthy spending habits will provide the baseline for financial health and help reduce employee stress.

2. Provide Financial Coaching for Long-Term Goals

Once immediate financial concerns are alleviated, employees should get advice and guidance on how to plan for future financial wellness. Guidance on how to invest for retirement is one of the main things companies should do.

This may require revamping your 401(k) system to provide more value for employees. But considering 62% of employees say that their company’s 401(k) is vital for their retirement health, and 88% of employees say it’s a must-have when looking for a new job, the investment will be worth it.

3. Consider Equity (Along With Education)

Whether your company is private or public at this point, there are methods of sharing equity as a financial benefit. Consider options such as:

• Restricted Stock Awards
• Incentive Stock Options
• Non-Qualified Stock Options, and
• Restricted Stock Units.

Stocks and equity not only play a part in helping employees plan for future financial health, they’re also a great way to boost your compensation plan in a more manageable way.

Work with a professional to decide the best way to offer equity to employees for your own business and situation. And then, once you have a strategy, make sure to provide education and resources to help employees understand this benefit.

Help them answer the questions:

• What are the stocks worth?
• When will they be usable?
• How can I earn more?

As long as employees understand the impact of their equity, they’ll be much happier and feel more secure with this financial perk.

4. Offer Financial Perks Customized To Your Workforce

There are many financial wellness benefits you can offer, and it won’t be helpful to list them all here. Instead, the most important thing to do is to survey and study your people to find out what benefits will be most impactful for them. Some ideas include:

• Do you have a lot of young, entry-level employees? Consider student loan assistance or education cost reimbursement programs.
• Do you have a lot of mothers or fathers? Consider a regular stipend for child care, diapers, or groceries.
• Do you expect employees to show up in-person five days a week? Consider a commuting benefit that covers gas or public transportation costs.
• Are your people living paycheck to paycheck? Consider flexible paydays, allowing people to get their money when they need it.
• Do your employees struggle with debt? Provide coaching in debt reduction and elimination.

By learning about your employees’ needs and wants, you can tailor your financial wellness approach to fit your people perfectly. This ensures your budget isn’t wasted and employees actually participate in your programs.

Physical, Mental, and Financial: The Trifecta of Benefits

Physical health has been on organizations’ radars for decades. The pandemic of 2020 brought mental health to the forefront. And now, economic turmoil is pushing financial health into the spotlight.

By providing purpose-built benefits, intentionally created to help employees with their actual challenges, you can create a workplace that employees love.