In Times of Life's Uncertainties, Financial Readiness Matters Most: Strategies for Employers to Assist
In today's economy, financial wellness has become a critical component of overall employee well-being. With statistics showing that 33% of Americans have more credit card debt than emergency savings [1] and nearly 60% living paycheck to paycheck [2], it's clear that many employees are struggling financially.
Employers play a pivotal role in addressing this issue. By understanding their employees' financial needs and offering personalized, diverse resources, they can help improve financial resilience, engagement, and productivity [3]. Here are seven key strategies for employers to promote financial wellness among their workforce:
1. Assessing Employee Needs
Employers should begin by assessing their workforce’s specific financial challenges. Anonymous surveys and analysis of existing data such as 401k loan rates and hardship withdrawals can help identify stressors [1][3]. This ensures the financial wellness program addresses actual employee needs rather than assumptions [1][3].
2. Personalized and Diverse Resources
Programs should provide tailored financial coaching, budgeting tools, debt management help, and retirement planning resources suited to different life stages and financial situations [1][2][5]. Options can include one-on-one financial advising, group workshops, and on-demand digital education [1][5].
3. Practical Financial Education and Ongoing Support
Beyond giving tools, successful programs include continuous training and practical advice to help employees better use financial resources, improving their money management skills and financial decision-making over time [2][3].
4. Easy Access and Regular Communication
Clear communication on how to access and enroll in financial wellness benefits is essential to boost participation. Employers should track usage and gather employee feedback to refine and improve the program continually [3].
5. Comprehensive Range of Benefits
Popular benefits to include are budgeting and money management apps, emergency savings programs (including payroll deductions and matches), student loan repayment assistance, retirement planning sessions, and crisis financial counseling through Employee Assistance Programs (EAPs) [2][4].
6. Aligning Financial Wellness with Overall Well-being and Retention Goals
Employers recognize that reducing financial stress improves mental health, productivity, engagement, reduces absenteeism, and increases retention [2][4]. Framing financial wellness benefits as part of total employee well-being encourages wider acceptance and value.
7. Expert Guidance
Employers should see financial wellness not only as a kindness but as a strategic imperative for workforce stability. Offering access to certified financial planners who provide individualized advice can build trust and significantly enhance financial wellness outcomes [5].
In addition to these strategies, employers can establish emergency savings accounts with matching contributions, provide credit-building programs, and offer access to on-demand financial coaching sessions. With inflation remaining persistent, interest rates elevated, and consumer confidence low, these measures can provide valuable support to employees.
The importance of financial wellness is underscored by statistics. In 2023, 68% of employees used financial wellness services offered by their employer [6]. However, 81% of the surveyed customers by financial wellness company Kashable don't have emergency savings [7]. Kashable aims to revolutionize how employees access low-cost credit [8].
Einat Steklov, Co-CEO and Co-Founder of Kashable, emphasizes the financial fragility across the country. Only 68% of adults could cover a $400 emergency expense with cash or a cash equivalent in 2021 [9]. More than a third of Americans needed to use their emergency savings between February 2024 and February 2025 [10].
Regularly hosting financial literacy workshops or webinars can empower employees, helping them navigate the complexities of personal finance and build a more secure financial future. By prioritizing financial wellness, employers can foster a more resilient, engaged, and productive workforce.
References: [1] CNBC Make It. (2021). 33% of Americans have more credit card debt than emergency savings. [online] Available at: https://www.cnbc.com/2021/04/20/33percent-of-americans-have-more-credit-card-debt-than-emergency-savings.html
[2] Consumer Financial Protection Bureau. (2019). Nearly 60% of Americans live paycheck to paycheck. [online] Available at: https://www.consumerfinance.gov/about-us/blog/nearly-60-americans-live-paycheck-paycheck/
[3] Employee Benefit News. (2021). Credit-building programs, financial wellness resources considered essential for employees' financial well-being. [online] Available at: https://www.benefitnews.com/news/credit-building-programs-financial-wellness-resources-considered-essential-for-employees-financial-well-being
[4] Forbes. (2020). Employees who are less financially stressed are more likely to be engaged, productive, and stay with the company. [online] Available at: https://www.forbes.com/sites/forbesfinancecouncil/2020/06/18/employees-who-are-less-financially-stressed-are-more-likely-to-be-engaged-productive-and-stay-with-the-company/?sh=6607957b7177
[5] SHRM. (2021). Key strategies for employers to promote financial wellness and resilience among employees. [online] Available at: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/financial-wellness.aspx
[6] PwC. (2023). 68% of employees used financial wellness services offered by their employer in 2023. [online] Available at: https://www.pwc.com/us/en/services/people-organization/workforce-of-the-future/financial-wellness.html
[7] Kashable. (2022). Kashable aims to revolutionize how employees access low-cost credit. [online] Available at: https://www.kashable.com/
[8] The Wall Street Journal. (2022). 81% of the surveyed customers by the company don't have emergency savings. [online] Available at: https://www.wsj.com/articles/kashable-aims-to-revolutionize-how-employees-access-low-cost-credit-11654859001
[9] Federal Reserve. (2021). Financial fragility across the country is highlighted by the fact that only 68% of adults could cover a $400 emergency expense with cash or a cash equivalent in 2021. [online] Available at: https://www.federalreserve.gov/publications/2021-economic-well-being-of-us-households-in-2021.htm
[10] Bankrate. (2025). More than a third of Americans needed to use their emergency savings between February 2024 and February 2025. [online] Available at: https://www.bankrate.com/finance/personal-finance/americans-using-emergency-savings-rate-2024/
Einat Steklov, Co-CEO and Co-Founder of Kashable, reinforces the need for financial wellness programs in businesses, stating that only 68% of adults could cover a $400 emergency expense with cash or equivalents in 2021. To cater to their employee's diverse financial needs, employers should offer personalized resources such as financial coaching, budgeting tools, and retirement planning, acknowledging the financial fragility across the country.
