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 maggior parte delle aziende segue una politica del bastone e della carota, offrendo solo soluzioni a breve termine ai problemi economici dei propri dipendenti, invece di aiutarli a creare e costruire beni a lungo termine. Questo spiega perché

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.

Benessere finanziario dei dipendenti: I problemi che i vostri dipendenti stanno affrontando in questo momento

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.

L'indagine ha preso in esame 1.686 adulti occupati a tempo pieno con una rappresentanza delle generazioni Gen Z, Millennial, Gen X e Baby Boomer.

1. Problemi di flusso di cassa e di indebitamento

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. Piani pensionistici inefficienti

I dipendenti finiscono per risparmiare di meno e quindi sono più propensi a saccheggiare i piani pensionistici prima del pensionamento. L'80% dei lavoratori statunitensi prevede di lavorare anche dopo il pensionamento, perché prevede di non essere finanziariamente sufficiente a breve.

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

3. Mancanza di pianificazione finanziaria

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 nascente generazione sandwiched

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. Prestiti per studenti

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. Prestazioni di benessere finanziario obbligatorie per legge

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.
• Piani di pensionamento - I piani di pensionamento finanziati dal datore di lavoro possono corrispondere i contributi dei dipendenti fino a un certo importo, creando così una risorsa per la pensione. Essendo esenti da imposte, inoltre, riducono il carico fiscale medio del dipendente riducendo il reddito imponibile.
• Assistenza legale - L'assistenza legale sponsorizzata dai dipendenti può offrire supporto legale o accesso ad avvocati e procuratori per aiutare in caso di diritto di famiglia, leggi comunitarie, frodi, Medicare, assistenza fiscale, furto d'identità, sussidi di disoccupazione o transazioni con implicazioni legali.
• 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.
• Assicurazione sulla vita sul posto di lavoro - Alcuni datori di lavoro offrono ai propri lavoratori un'assicurazione sulla vita a tempo limitato a costi ridotti, detta anche piano di gruppo. Altri vanno oltre, offrendo un'assicurazione di invalidità per i casi in cui un dipendente diventa disabile e non può lavorare. La copertura per la prima è a lungo termine, mentre la seconda può essere a breve o a lungo termine.
• Permessi retribuiti aggiuntivi - Alcuni datori di lavoro fanno di tutto per garantire che i loro dipendenti possano evitare il burnout e lo stress lavorativo. Forniscono permessi retribuiti supplementari per consentire ai dipendenti di prendere le ferie o di rigenerarsi e ricaricarsi.

2. Incentivi finanziari

Pur variando da un datore di lavoro all'altro, da un privilegio a una ricompensa in denaro, gli incentivi finanziari stimolano la motivazione, l'impegno e le buone prestazioni, migliorando la produttività e il morale dell'organizzazione.

• Incentivi alle vendite e ai partner - Diversamente dai premi di rendimento annuali, le commissioni di vendita in loco, basate su obiettivi, o gli incentivi ai partner ricompensano monetariamente un dipendente che ha contribuito in modo significativo alle entrate o agli obiettivi di vendita dell'azienda.
• Incentivi in denaro per i referral - I dipendenti sono incoraggiati a guadagnare denaro o cashback attraverso le iscrizioni dei referral. Ogni volta che un nuovo candidato viene segnalato, il referente riceve un beneficio finanziario in contanti o buoni.
• Gamification - Alcuni datori di lavoro entusiasmano i propri dipendenti o attirano nuovi talenti utilizzando punti, badge, sfide e classifiche per misurare e celebrare le buone prestazioni. I dipendenti possono scambiarli con denaro o premi finanziari attraverso carte regalo, buoni, coupon, sconti, cashback, ecc. 
• Partecipazione agli utili - Alcuni datori di lavoro offrono ai propri dipendenti una quota degli utili dell'azienda come prestazione pensionistica per dimostrare il proprio apprezzamento nei confronti dei dipendenti. La percentuale di partecipazione varia da un'organizzazione all'altra, ma di solito va dal 2,5% al 7,5%.
• Incentivi per le celebrazioni - Alcuni datori di lavoro offrono contanti o carte regalo in occasione di anniversari, compleanni, matrimoni, nascite, ecc. come gesto di riconoscenza per celebrare e riconoscere i propri dipendenti.
• Educazione e pianificazione finanziaria - I dipendenti con una buona formazione finanziaria hanno un migliore controllo delle proprie finanze e, di conseguenza, sono meno stressati e più produttivi. I datori di lavoro devono quindi dotare la propria forza lavoro degli strumenti di budgeting, delle strategie e delle risorse giuste per prendere decisioni finanziarie sicure.

3. Vantaggi finanziari

Pur variando da un datore di lavoro all'altro, da un privilegio a una ricompensa in denaro, gli incentivi finanziari stimolano la motivazione, l'impegno e le buone prestazioni, migliorando la produttività e il morale dell'organizzazione.

• Indennità per i dipendenti - I datori di lavoro che offrono stipendi per lo stile di vita, indennità di viaggio e di trasferimento per coprire il viaggio iniziale, l'affitto, il cibo, l'assicurazione, i costi di trasloco, ecc.
• Assistenza per bambini e tasse scolastiche - I dipendenti che sponsorizzano programmi di assistenza all'infanzia attraverso asili nido in loco o legami aziendali e/o forniscono assistenza per le tasse scolastiche assicurano un buon equilibrio tra vita privata e lavoro e una riduzione dell'assenteismo in una forza lavoro stabile.
• Education stipend – Some employers boost their employee's growth and development by providing financial support for learning initiatives, higher education, job training, or certifications.
• Assistenza per i prestiti agli studenti o per i fondi universitari - Sebbene siano rari, alcuni datori di lavoro veramente attenti motivano i loro dipendenti offrendo assistenza finanziaria per prestiti agli studenti o fondi universitari preesistenti per loro stessi o per i loro figli.

4. Prestazioni complementari 

Oltre ai benefit, ai vantaggi e agli incentivi standard, alcuni datori di lavoro rafforzano il rapporto di lavoro e incoraggiano la fedeltà offrendo ulteriori benefit collaterali.

• 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.
• Assistenza per l'acquisto o l'affitto della casa - La maggior parte dei dipendenti si preoccupa di acquistare o affittare una casa in un mercato immobiliare sempre più esorbitante. Poiché gli spostamenti a lunga distanza incidono sulla produttività complessiva e sui tassi di presenzialismo, i datori di lavoro possono affrontare il problema offrendo un'assistenza abitativa come parte dei loro pacchetti di benefit.
• Cashback o carte di credito - I benefit quasi in contanti come cashback, buoni pasto, carte viaggio e buoni carburante sono perfetti per i datori di lavoro per distinguersi sul mercato. Questi fringe benefit rappresentano un ulteriore sostegno agli obiettivi di sicurezza finanziaria dei dipendenti e creano una forza lavoro motivata e coinvolta, in grado di guidare il successo dell'azienda.
• Sconti/voucher esclusivi per i dipendenti - Alcune organizzazioni motivano ed entusiasmano i loro migliori talenti offrendo benefici finanziari supplementari come sconti esclusivi per i dipendenti per lo shopping, esperienze di vita a pagamento e iscrizioni a club sanitari. Se da un lato si tratta di benefit "buoni da avere", dall'altro sono anche ottimi attrattori di pubblico, che aiutano l'organizzazione ad attrarre e trattenere i talenti migliori.

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:

• Benessere
• 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:

• In cosa consistono i benefici del benessere finanziario e quali sono i suoi limiti?
• Il datore di lavoro offrirà un sostegno al pagamento anticipato o sarà rimborsato?
• Quali sono i requisiti per usufruire di tali benefici?
• Quali sono le implicazioni fiscali di questi benefici?
• Qual è la procedura da seguire quando un dipendente si licenzia?

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.

Domande frequenti