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 plupart des entreprises suivent une politique de la carotte et du bâton, n'offrant que des solutions à court terme aux problèmes économiques de leurs employés au lieu de les aider à créer et à construire des actifs à long terme. Ceci explique pourquoi

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.

Le bien-être financier des employés : Les problèmes auxquels vos employés sont confrontés en ce moment

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.

Cette enquête a porté sur 1 686 adultes employés à temps plein, représentant les générations Z, Millennials, X et Baby Boomers.

1. Les défis de la trésorerie et de la dette

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. Des plans de retraite inefficaces

Les salariés finissent par épargner moins et sont donc plus susceptibles de mettre à sac les plans de retraite avant la retraite. 80 % des travailleurs américains s'attendent à travailler même après leur retraite parce qu'ils prévoient d'être insuffisants financièrement à court terme.

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

3. Absence de planification financière

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 génération sandwich en plein essor

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. Les prêts étudiants

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. Prestations de bien-être financier prescrites par la loi

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.
• Régimes de retraite - Les régimes de retraite financés par l'employeur peuvent compléter les cotisations des salariés jusqu'à un certain montant, créant ainsi un actif pour la retraite. Comme ils sont exonérés d'impôt, ils réduisent également la facture fiscale moyenne du salarié en diminuant son revenu imposable.
• Assistance juridique - L'assistance juridique parrainée par l'employé peut offrir un soutien juridique ou l'accès à des juristes et des avocats pour aider en matière de droit de la famille, de droit communautaire, de fraude, d'assurance-maladie, d'assistance fiscale, d'usurpation d'identité, d'allocations de chômage ou de transactions ayant des implications juridiques.
• 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.
• Assurance vie sur le lieu de travail - Certains employeurs proposent à leurs employés une assurance vie à durée limitée à des coûts réduits, également appelée plan de groupe. D'autres vont plus loin en proposant une assurance invalidité lorsqu'un employé devient invalide et ne peut plus travailler. Dans le premier cas, la couverture est à long terme, tandis que dans le second, elle peut être à court ou à long terme.
• Congés payés supplémentaires - Certains employeurs font un effort supplémentaire pour s'assurer que leurs employés évitent l'épuisement professionnel et le stress au travail. Ils accordent des congés payés supplémentaires pour permettre aux employés de prendre des vacances ou de se ressourcer.

2. Les incitations financières

Bien qu'elles varient d'un employeur à l'autre, allant d'un privilège à une récompense monétaire, les incitations financières stimulent la motivation, l'engagement et les bonnes performances, améliorant ainsi la productivité et le moral de toute l'organisation.

• Primes de vente et de partenariat - Très différentes des primes de performance annuelles, les commissions de vente sur place, basées sur des objectifs, ou les primes de partenariat récompensent monétairement un employé qui a contribué de manière significative au chiffre d'affaires ou aux objectifs de vente de l'entreprise.
• Incitations financières à la recommandation - Les employés sont encouragés à gagner de l'argent ou à bénéficier de remises en espèces lorsqu'ils recommandent des candidats. Chaque fois qu'un nouveau candidat est recommandé, l'auteur de la recommandation reçoit un avantage financier sous forme d'argent ou de bons d'achat.
• Gamification - Certains employeurs enthousiasment leurs employés ou attirent de nouveaux talents en utilisant des points, des badges, des défis et des classements pour mesurer et célébrer les bonnes performances. Les employés peuvent échanger ces points contre de l'argent ou des récompenses financières sous la forme de cartes-cadeaux, de bons d'achat, de coupons, de remises, de cashback, etc. 
• Participation aux bénéfices - Certains employeurs accordent à leurs salariés une participation aux bénéfices de l'entreprise en tant que prestation de retraite, afin de montrer leur reconnaissance à l'égard des salariés. Le pourcentage de participation varie d'une entreprise à l'autre, mais se situe généralement entre 2,5 % et 7,5 %.
• Incitations à la célébration - Certains employeurs offrent de l'argent ou des cartes-cadeaux à l'occasion d'anniversaires, de mariages, de naissances, etc.
• Éducation et planification financières - Les employés qui ont reçu une éducation financière maîtrisent mieux leurs finances et, par conséquent, sont moins stressés et plus productifs. Les employeurs doivent donc donner à leur personnel les outils, les stratégies et les ressources nécessaires pour établir un budget et prendre des décisions financières en toute confiance.

3. Avantages financiers

Bien qu'elles varient d'un employeur à l'autre, allant d'un privilège à une récompense monétaire, les incitations financières stimulent la motivation, l'engagement et les bonnes performances, améliorant ainsi la productivité et le moral de toute l'organisation.

• Allocations aux employés - Les employeurs qui offrent des allocations de style de vie, de voyage et de réinstallation pour couvrir le voyage initial, le loyer, la nourriture, l'assurance, les frais de déménagement, etc. gagnent le cœur de leurs employés.
• Aide à la garde d'enfants et aux frais de scolarité - Les employés qui parrainent des programmes de garde d'enfants par le biais d'une crèche sur place ou d'un partenariat avec l'entreprise et/ou qui offrent une aide aux frais de scolarité garantissent un bon équilibre entre vie professionnelle et vie privée et réduisent l'absentéisme au sein d'une main-d'œuvre stable.
• Education stipend – Some employers boost their employee's growth and development by providing financial support for learning initiatives, higher education, job training, or certifications.
• Aide à l'obtention d'un prêt étudiant ou d'un fonds d'études - Bien que cela soit rare, certains employeurs vraiment bienveillants motivent leurs employés en leur offrant une aide financière pour des prêts étudiants préexistants ou des fonds d'études pour eux-mêmes ou pour leurs enfants.

4. Prestations complémentaires 

Outre les avantages, les avantages accessoires et les incitations habituels, certains employeurs renforcent la relation employeur-employé et encouragent la fidélité en offrant des avantages complémentaires.

• 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.
• Aide à l'achat ou à la location d'un logement - La plupart des salariés s'inquiètent de l'achat ou de la location d'un logement dans un marché immobilier toujours exorbitant. Étant donné que les déplacements sur de longues distances ont un impact sur la productivité globale et le taux de présentéisme, les employeurs peuvent y remédier en offrant une aide au logement dans le cadre de leurs programmes d'avantages sociaux.
• Cashbacks ou cartes de paiement - Les avantages proches de l'argent liquide tels que les cashbacks, les coupons repas, les cartes de voyage et les bons d'essence sont parfaits pour permettre aux employeurs de se démarquer sur le marché. Ces avantages marginaux constituent un soutien supplémentaire aux objectifs de sécurité financière des employés et créent une main-d'œuvre motivée et engagée qui contribue à la réussite de l'entreprise.
• Réductions/chèques exclusifs pour les employés - Certaines organisations motivent et enthousiasment leurs meilleurs talents en leur offrant des avantages financiers supplémentaires tels que des réductions exclusives pour le shopping, des expériences de vie payantes et des abonnements à des clubs de santé. S'il s'agit là d'avantages "utiles", ils attirent également les foules et permettent à l'entreprise d'attirer et de retenir les meilleurs talents.

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:

• Bien-être
• 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 quoi consistent les avantages du bien-être financier, et quelles en sont les limites ?
• L'employeur offrira-t-il une aide au paiement initial, ou sera-t-il remboursé ?
• Quelles sont les conditions à remplir pour bénéficier de ces avantages ?
• Quelles sont les implications fiscales de ces avantages ?
• Quelle est la procédure à suivre lorsqu'un employé démissionne ?

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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