How to Support Employee Financial Well-being at Work in 2025

Financial distress—one of the key symptoms of poor financial well-being—can directly impact employee performance and mental health. As CIPD’s report Financial Well-being: An Evidence Review highlights, supporting employee financial well-being is no longer optional; it’s a business necessity.

As companies recover from the pandemic, the challenges around hiring and retention have only intensified. In an unstable economic and political environment, a growing number of workers face in-work poverty—and in many cases, standard wages are no longer enough. 

This rise in financial stress doesn’t just affect employees personally—it reduces motivation, productivity, and loyalty. Prioritizing financial well-being in the workplace is one of the most strategic ways to build a resilient, engaged workforce that can thrive in today’s uncertain market.

What is financial well-being at work?

Financial well-being at work refers to being secure and in control of your finances, both in the present and future. The peace of mind comes with knowing you can meet your living costs and deal with unexpected emergencies, and it's the freedom of choice when you're no longer pinching pennies.

But it goes beyond the employee's financial position; it's also about the employer's mindset towards their employees and their attention towards the things that matter most to them. As income providers, employers are critical in supporting their workers' financial well-being. 

La mayoría de las empresas siguen una política de palo y zanahoria, ofreciendo sólo soluciones a corto plazo a los problemas económicos de sus empleados en lugar de ayudarles a crear y construir activos a largo plazo. Esto explica por qué

Emerging from the economic devastation wrought by the pandemic, the new generation workforce's focus is financial security. Especially considering that 66% of millennials don't have a retirement plan. 

With the rising household debt, many employees are turning to their employers for long-term financial wellness support and comprehensive benefits programs. If they fail to find it, they quit and move on to greener pastures or give in to the lure of the gig economy.

Why is financial well-being important in the workplace?

Financial well-being is the most significant driver of retention and employee engagement. It also attracts the right talent which ensures the company's survival during disruptions and accelerates its growth.

Employers must collaborate with their workforce to understand their needs, identify support areas, and formulate solutions that benefit their employees while aligning with the company's revenue generation goals.

Employees need to feel financially secure and appreciated, and companies prioritizing financial wellness get higher returns on their human investments.

Bienestar financiero de los empleados: Problemas a los que se enfrentan sus empleados ahora mismo

Before structuring a financial benefits program, it is first essential to understand the anatomy of the financial issues of an average employee, as given in the PWC Employee financial wellness survey conducted in 2019.

Esta encuesta estudió a 1.686 adultos empleados a tiempo completo con representación de las generaciones Gen Z, Millennial, Gen X y Baby Boomer.

1. Retos de tesorería y endeudamiento

The inability to save sufficiently is one of the top problems employees face and is associated with insufficient cash flows and mismanaged debts. The PWC 2019 employee financial wellness survey finds that meeting even small, unexpected expenses becomes challenging for 62% of Millenials.

The survey further uncovers that compensations tend not to keep up with the surging cost of living and that covering even everyday expenses is a struggle. Accumulated debts are another critical issue, owing to credit card penalties and student loans.

2. Planes de jubilación ineficaces

Los empleados acaban ahorrando menos y, por tanto, son más propensos a asaltar los planes de jubilación antes de jubilarse. El 80% de los trabajadores estadounidenses esperan trabajar incluso después de jubilarse porque se prevén insuficientes económicamente en breve.

Traditional retirement planning programs fail to address these newer expense trends and do not address factors that could cause employee stress.

3. Falta de planificación financiera

Lack of sufficient financial awareness training and support makes employees myopic of their future finances. For instance, only 43% of the Baby Boomers who are due to retire in the next five years have estimated how much they would spend during retirement. The inability to look into future expenses contributes heavily to the financial stress that impacts work productivity.

4. La floreciente generación intercalada

Family spending has increased because many employees have dependent children and parents. Nearly half of the employees with adult children surveyed in the PwC study provide financial support. To address this problem, employers should plan benefits around the employees' family spending.

5. Préstamos a estudiantes

The student loan predicament is here to stay. Almost 50% of millennials have at least one student loan. Even 10% of Baby Boomers still have a student loan. 80% of the millennials claim that these loans take the rest of their financial plans off-track. 

A few employers like Staples and PricewaterhouseCoopers have taken up student loan repayments to reduce this debt burden on their employees.

Types of benefits that promote employee financial well-being

Since the relationship between the employee's financial health and the company's overall well-being is reciprocal,

Some companies have cracked the code to their employee's financial well-being by taking a total rewards approach toward long-term wealth creation. They provide extrinsic motivation in the form of

1. Prestaciones financieras de bienestar obligatorias por ley

These are a standard set of government-mandated benefits companies offer to help their employees make, save, or better manage their money. These benefits are provided over and above the standard wages and at the company's discretion.

• Supplemental pay – This offering shows the workforce that the company is committed to charting a path to their employees' financial well-being. Supplemental income includes stock options, 401 (k) plans, bonuses, etc. Additionally, companies can offer 401(a) or 401(k) plans to help employees save for retirement. These plans differ in funding structure, investment options, and eligibility requirements.
• Planes de jubilación - Los planes de jubilación financiados por la empresa pueden igualar las aportaciones de los empleados hasta una determinada cantidad, creando un activo para la jubilación. Al estar exentos de impuestos, también disminuyen la factura fiscal media del empleado al reducir la renta imponible.
• Asistencia jurídica - La asistencia jurídica patrocinada por los empleados puede ofrecer apoyo jurídico o acceso a abogados y procuradores para ayudar con el derecho de familia, las leyes comunitarias, el fraude, Medicare, la asistencia fiscal, el robo de identidad, las prestaciones por desempleo o las transacciones con implicaciones jurídicas.
• Healthcare coverage – Health is wealth. Employers must offer comprehensive healthcare coverage for employees and sometimes immediate family members (spouse and kids) to deal with any medical emergency. While the insurance premium is discretionary, plans include regular check-ups and eye and dental coverage. Some employers also offer short or long-term disability insurance for those affected and unable to work.
• Seguro de vida en el trabajo - Algunas empresas ofrecen a sus trabajadores un seguro de vida de duración limitada a costes reducidos, también llamado plan colectivo. Otras van más allá y ofrecen un seguro de invalidez para cuando un empleado queda incapacitado y no puede trabajar. La cobertura del primero es a largo plazo, mientras que la del segundo puede ser a corto o largo plazo.
• Tiempo libre remunerado adicional: algunas empresas hacen un esfuerzo adicional para asegurarse de que sus empleados puedan evitar el agotamiento y el estrés laboral. Ofrecen permisos pagados adicionales para que los empleados puedan tomarse vacaciones o rejuvenecer y recargar las pilas.

2. 2. Incentivos financieros

Aunque varían según los empleadores, desde un privilegio a una recompensa monetaria, los incentivos económicos impulsan la motivación, el compromiso y el buen rendimiento, mejorando la productividad y la moral en toda la organización.

• Incentivos de ventas y para socios - Muy diferentes de las primas anuales por rendimiento, las comisiones de ventas sobre el terreno, basadas en objetivos, o los incentivos para socios recompensan monetariamente a un empleado que ha contribuido significativamente a los ingresos o a los objetivos de ventas de la empresa.
• Incentivos en metálico por recomendación: se anima a los empleados a ganar dinero o devoluciones en metálico a través de las inscripciones por recomendación. Cada vez que se incorpora un nuevo candidato, el remitente recibe algún beneficio económico en efectivo o vales.
• Gamificación - Algunos empresarios entusiasman a sus empleados o atraen nuevos talentos utilizando puntos, insignias, retos y tablas de clasificación para medir y celebrar el buen rendimiento. Los empleados pueden canjearlos por dinero o recompensas económicas a través de tarjetas regalo, vales, cupones, descuentos, cashback, etc. 
• Participación en los beneficios - Algunas empresas dan a sus trabajadores una participación en los beneficios de la empresa como prestación de jubilación para mostrar su agradecimiento a los empleados. El porcentaje de participación varía de una empresa a otra, pero suele oscilar entre el 2,5% y el 7,5%.
• Incentivos para celebraciones - Algunas empresas ofrecen dinero en metálico o tarjetas regalo en aniversarios, cumpleaños, matrimonios, nacimientos, etc., como gesto considerado para celebrar y reconocer a sus empleados.
• Educación y planificación financiera - Los empleados con formación financiera controlan mejor sus finanzas y, por extensión, están menos estresados y son más productivos. Por ello, las empresas deben dotar a sus empleados de las herramientas, estrategias y recursos presupuestarios adecuados para que tomen decisiones financieras con confianza.

3. Ventajas financieras

Aunque varían según los empleadores y van desde un privilegio a una recompensa monetaria, los incentivos económicos impulsan la motivación, el compromiso y el buen rendimiento, mejorando la productividad y la moral en toda la organización.

• Subsidios para empleados - Los empresarios que ofrecen estipendios para el estilo de vida, viajes y recolocación para cubrir el viaje inicial, el alquiler, la comida, el seguro, los gastos de mudanza, etc., se ganan el corazón de sus empleados.
• Guarderías y ayudas para la matrícula - Las empresas que patrocinan programas de guardería a través de guarderías in situ o de vínculos corporativos y/o proporcionan ayudas para la matrícula garantizan un buen equilibrio entre la vida laboral y personal y reducen el absentismo en una plantilla estable.
• Education stipend – Some employers boost their employee's growth and development by providing financial support for learning initiatives, higher education, job training, or certifications.
• Ayudas para préstamos estudiantiles o fondos para la universidad: aunque son poco frecuentes, algunos empresarios verdaderamente solidarios motivan a sus empleados ofreciéndoles ayudas económicas para préstamos estudiantiles preexistentes o fondos para la universidad para ellos o sus hijos.

4. Prestaciones complementarias 

Aparte de los beneficios, ventajas e incentivos habituales, algunas empresas mejoran la relación empresa-empleado y fomentan la lealtad ofreciendo beneficios adicionales.

• Emergency savings fund – When bills don't align with the traditional paycheck cycle, on-demand, short-term solutions like instant credit or a salary advance called 'earned wage access' can act like a financial cushion for unexpected expenses. Employees can avail of instant, short-term credit or early salary advances for sudden car repairs, marriage or divorce, house repairs, accidents, medical emergencies, unplanned travel, paying bills during extended sick leaves, etc.
• Ayuda para la compra o el alquiler de vivienda - A la mayoría de los empleados les preocupa comprar o alquilar una casa en un mercado inmobiliario cada vez más desorbitado. Dado que los desplazamientos de larga distancia repercuten en la productividad general y en las tasas de presentismo, las empresas pueden abordarlo ofreciendo ayudas a la vivienda como parte de sus paquetes de prestaciones.
• Cashbacks o tarjetas de dinero en efectivo - Las prestaciones casi en efectivo, como cashback, cupones de comida, tarjetas de viaje y vales de combustible, son perfectas para que los empleadores destaquen en el mercado. Estos beneficios complementarios actúan como un apoyo añadido a los objetivos de seguridad financiera de los empleados y crean una mano de obra motivada y comprometida para impulsar el éxito empresarial.
• Descuentos/vales exclusivos para empleados - Algunas organizaciones motivan y entusiasman a sus mejores talentos ofreciéndoles beneficios económicos complementarios, como descuentos exclusivos para empleados en compras, experiencias de estilo de vida pagadas y afiliaciones a gimnasios. Aunque se trata de beneficios que "conviene tener", también son un gran reclamo, ya que ayudan a una organización a atraer y retener a los mejores talentos.

How can you develop an effective employee financial wellbeing policy at work?

A robust financial wellbeing policy is no longer a luxury—it’s a necessity for forward-thinking organizations that value employee happiness, retention, and productivity. Crafting a policy that genuinely makes a difference involves strategic planning, cross-functional collaboration, and a people-first mindset. Here’s how you can build one:

1. Assess employee needs first

Begin with employee listening tools like surveys, one-on-ones, and feedback forms to uncover financial stressors. Look for insights on:

• Common debt burdens (e.g., loans, credit cards)
• Emergency fund status
• Retirement preparedness
• Financial literacy levels Tailor your policy around these insights to ensure it's relevant and impactful.

2. Define clear objectives

Be explicit about what your financial wellbeing policy aims to achieve. Common goals include:

• Reducing employee financial stress
• Enhancing financial literacy
• Improving retention and productivity
• Supporting life-stage needs (e.g., child education, elder care)

Setting KPIs such as participation rates, savings utilization, or improvement in eNPS can help track effectiveness.

3. Offer a mix of short-term and long-term benefits

A balanced policy supports both immediate financial needs and long-term financial resilience. This might include:

• Short-term: Salary advances, emergency funds, discount programs, on-demand pay
• Long-term: Retirement planning support, insurance coverage, investment advisory sessions

4. Promote financial literacy

Education is at the core of any financial wellbeing strategy. Offer access to:

• Workshops/webinars on budgeting, saving, and investing
• One-on-one financial coaching
• Partner resources from fintech or financial institutions

Make these resources ongoing and easily accessible—via an employee app, intranet, or HR portal.

5. Personalize with flexible benefits

Every employee has unique financial priorities. Empower them with Lifestyle Spending Accounts (LSAs) and flexible fringe benefits that can be tailored to:

• Bienestar
• Upskilling
• Commute/travel
• Family care

Platforms like Empuls make this easy by enabling HR teams to customize benefits while maintaining budgetary control.

6. Communicate transparently and frequently

A good policy fails without awareness and adoption. Ensure:

• Regular updates and nudges through email, intranet, and team meetings
• Manager enablement so leaders can advocate for usage
• Success stories shared internally to reinforce the policy’s impact

7. Measure, refine, repeat

Monitor employee participation, feedback, and satisfaction regularly. Use data analytics to:

• Identify underutilized benefits
• Improve communication strategies
• Adjust offerings to meet evolving needs

Use tools like Empuls People Analytics to gain real-time insights and drive data-backed decisions.

How can employee financial wellness benefits be managed effectively?

Doubtless, prioritizing financial well-being leads to better EVP, higher engagement, and retention. Financial wellness programs have gained a greater significance across industries as employers realize their role in alleviating their employee's monetary stress. But to effectively manage their benefits, employees must first understand the extent of their financial wellness benefits entitlement:

• ¿En qué consisten las prestaciones de bienestar financiero y cuáles son sus límites?
• ¿Ofrecerá el empresario ayuda para el pago por adelantado, o se reembolsará?
• ¿Cuáles son los requisitos para beneficiarse de estas prestaciones?
• ¿Cuáles son las implicaciones fiscales de estas prestaciones?
• ¿Cuál es el procedimiento cuando un empleado dimite?

Once the employer clarifies the extent of its financial wellness support, it should leverage the power of digital technology to quickly launch, manage, and centralize financial well-being benefits across the organization. This offers a degree of transparency by helping every employee easily access and track their financial health.

Empuls: Empowering employee financial wellbeing at work

In today's work environment, financial stress can significantly impact employee productivity, engagement, and mental health. Recognizing this, Empuls by Xoxoday offers a comprehensive suite of tools designed to nurture employee financial wellbeing—going far beyond conventional benefits.

1. Salary advance and earned wage access

Empuls helps organizations support employees during financial crunches through early access to earned wages. This feature empowers employees to manage unexpected expenses without relying on high-interest loans or credit. 

The digital disbursement process is quick and secure, ensuring instant cash flow when needed—at no cost or liability to the employer​.

2. Exclusive perks, discounts & cashback

To help stretch employee paychecks, Empuls provides access to over 1 million offers from 6000+ global and local brands, spanning categories like groceries, travel, dining, electronics, and more. 

These stackable savings, including discounts, deals, and cashback, can equate to an effective 7-8% salary raise—significantly boosting disposable income across 50+ countries​.

3. Flexible fringe benefits via lifestyle spending accounts

Empuls gives organizations the ability to offer customizable fringe benefits tailored to individual employee preferences. This includes allowances for:

• Fitness & wellness
• Remote work setup
• Upskilling
• Travel & commute
• Family care and more

These perks are managed through Lifestyle Spending Accounts (LSAs), which give employees the autonomy to choose benefits that align with their unique lifestyle needs, promoting both financial and emotional wellbeing​.

4. Tax-saving benefits

Empuls simplifies tax-compliant disbursal of common allowances such as:

• Meal and fuel cards
• Telecom reimbursements
• Books & periodicals These help employees reduce their taxable income while enjoying meaningful everyday benefits—all managed seamlessly through a multi-wallet card system​.

5. A platform for all stakeholders

Empuls offers a user-friendly platform where HR leaders can configure and manage benefit programs with ease. Managers can encourage their teams to utilize these offerings for better work-life balance, and employees can track savings and redemptions via mobile apps and intuitive dashboards.

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