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. 

Kebanyakan syarikat mengikuti dasar lobak merah, hanya menawarkan penyelesaian jangka pendek kepada masalah ekonomi pekerja mereka dan bukannya membantu mereka mencipta dan membina aset jangka panjang. Ini menjelaskan mengapa

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.

Kesejahteraan kewangan pekerja: Masalah yang dihadapi oleh pekerja anda sekarang

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.

Tinjauan ini mengkaji 1,686 orang dewasa yang bekerja sepenuh masa dengan perwakilan dari generasi Gen Z, Milenium, Gen X, dan Baby Boomer.

1. Cabaran aliran tunai dan hutang

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. Pelan persaraan yang tidak cekap

Pekerja akhirnya menyimpan lebih sedikit dan dengan itu lebih cenderung untuk menyerbu rancangan persaraan sebelum bersara. 80% pekerja AS mengharapkan untuk bekerja walaupun selepas bersara kerana mereka mengunjurkan diri mereka tidak mencukupi dari segi kewangan tidak lama lagi.

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

3. Kurang perancangan kewangan

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. Generasi sandwic yang berkembang

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. Pinjaman pelajar

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. Manfaat kesejahteraan kewangan yang dimandatkan secara sah

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.
• Pelan persaraan – Pelan persaraan yang dibiayai oleh majikan boleh memadankan caruman pekerja sehingga jumlah tertentu, mewujudkan aset untuk persaraan. Oleh kerana mereka dikecualikan cukai, mereka juga menurunkan bil cukai purata pekerja dengan mengurangkan pendapatan bercukai.
• Bantuan guaman – Bantuan undang-undang yang ditaja oleh pekerja boleh menawarkan sokongan undang-undang atau akses kepada peguam dan peguam untuk membantu undang-undang keluarga, undang-undang komuniti, penipuan, Medicare, bantuan cukai, kecurian identiti, faedah pengangguran, atau transaksi dengan implikasi undang-undang.
• 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.
• Insurans hayat di tempat kerja – Sesetengah majikan menawarkan pekerja mereka insurans hayat jangka terhad pada kos yang dikurangkan, juga dipanggil pelan kumpulan. Lain-lain melampaui dengan menyediakan insurans kecacatan apabila pekerja menjadi kurang upaya dan tidak boleh bekerja. Perlindungan untuk yang pertama adalah jangka panjang, manakala yang terakhir boleh sama ada pendek atau jangka panjang.
• Tambahan masa cuti berbayar - Sesetengah majikan berusaha lebih keras untuk memastikan pekerja mereka dapat mengelakkan keletihan dan tekanan kerja. Mereka menyediakan cuti berbayar tambahan untuk membolehkan pekerja bercuti atau meremajakan dan mengisi semula.

2. Insentif kewangan

Walaupun mereka berbeza-beza merentas majikan, dari keistimewaan hingga ganjaran kewangan, insentif kewangan mendorong motivasi, penglibatan, dan prestasi yang baik, meningkatkan produktiviti dan semangat di seluruh organisasi.

• Insentif jualan dan rakan kongsi – Sangat berbeza dengan bonus prestasi tahunan, komisen jualan berasaskan sasaran, atau insentif rakan kongsi secara monetari memberi ganjaran kepada pekerja yang telah menyumbang dengan ketara kepada sasaran pendapatan atau jualan syarikat.
• Rujukan insentif tunai - Pekerja digalakkan untuk mendapatkan wang tunai atau rebat tunai melalui pendaftaran rujukan. Setiap kali calon yang baru dirujuk datang, perujuk menerima beberapa faedah kewangan secara tunai atau baucar.
• Gamification – Sesetengah majikan memikat pekerja mereka atau menarik bakat baru menggunakan mata, lencana, cabaran, dan papan pendahulu untuk mengukur dan meraikan prestasi yang baik. Pekerja boleh menukarnya dengan wang tunai atau ganjaran kewangan melalui kad hadiah, baucar, kupon, diskaun, rebat tunai, dll. 
• Perkongsian keuntungan – Sesetengah majikan memberikan tenaga kerja mereka bahagian dalam keuntungan syarikat sebagai faedah persaraan untuk menunjukkan penghargaan mereka kepada pekerja. Peratusan saham berbeza di seluruh organisasi tetapi biasanya berkisar antara 2.5% hingga 7.5%.
• Insentif perayaan – Sesetengah majikan menawarkan wang tunai atau kad hadiah pada ulang tahun, hari lahir, perkahwinan, melahirkan anak, dan lain-lain, sebagai isyarat yang bijak untuk meraikan dan mengenali pekerja mereka.
• Pendidikan dan perancangan kewangan – Pekerja yang berpendidikan kewangan berada dalam kawalan kewangan mereka dengan lebih baik dan, dengan lanjutan, kurang tertekan dan lebih produktif. Oleh itu, majikan mesti memperkasakan tenaga kerja mereka dengan alat, strategi, dan sumber belanjawan yang betul untuk membuat keputusan kewangan yang yakin.

3. Faedah kewangan

Walaupun mereka berbeza-beza merentas majikan dari keistimewaan hingga ganjaran kewangan, insentif kewangan mendorong motivasi, penglibatan, dan prestasi yang baik, meningkatkan produktiviti dan semangat di seluruh organisasi.

• Elaun pekerja – Majikan yang menawarkan elaun gaya hidup, perjalanan, dan penempatan semula untuk menampung perjalanan awal, sewa, makanan, insurans, kos bergerak, dan lain-lain, memenangi hati pekerja mereka.
• Bantuan penjagaan kanak-kanak dan tuisyen - Pekerja yang menaja program penjagaan kanak-kanak melalui penjagaan harian di tapak atau ikatan korporat dan / atau menyediakan bantuan tuisyen memastikan keseimbangan kerja-kehidupan yang baik dan mengurangkan ketidakhadiran dalam tenaga kerja yang stabil.
• Education stipend – Some employers boost their employee's growth and development by providing financial support for learning initiatives, higher education, job training, or certifications.
• Bantuan pinjaman pelajar atau dana kolej – Walaupun jarang berlaku, sesetengah majikan yang benar-benar prihatin memotivasikan pekerja mereka dengan menawarkan bantuan kewangan dengan pinjaman pelajar yang sedia ada atau dana kolej untuk diri mereka sendiri atau anak-anak mereka.

4. Faedah tambahan 

Selain daripada faedah standard, faedah, dan insentif, sesetengah majikan meningkatkan hubungan majikan-pekerja dan menggalakkan kesetiaan dengan menawarkan faedah tambahan sampingan.

• 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.
• Bantuan membeli rumah atau sewa – Kebanyakan pekerja bimbang tentang membeli atau menyewa rumah di pasaran perumahan yang sentiasa terlalu tinggi. Oleh kerana perjalanan jarak jauh memberi kesan kepada keseluruhan produktiviti dan kadar presenteeisme, majikan boleh menanganinya dengan menawarkan sokongan perumahan sebagai sebahagian daripada pakej faedah mereka.
• Pulangan tunai atau kad tunai – Faedah hampir tunai seperti cashback, kupon makanan, kad perjalanan dan baucar bahan api sangat sesuai untuk majikan menonjol di pasaran. Faedah pinggiran ini bertindak sebagai sokongan tambahan kepada matlamat keselamatan kewangan pekerja dan mewujudkan tenaga kerja yang bermotivasi dan terlibat untuk memacu kejayaan perniagaan.
• Diskaun / baucar pekerja eksklusif – Sesetengah organisasi memotivasi dan memupuk bakat terbaik mereka dengan menawarkan faedah kewangan tambahan seperti diskaun pekerja eksklusif untuk membeli-belah, pengalaman gaya hidup berbayar, dan keahlian kelab kesihatan. Walaupun ini adalah faedah 'baik untuk dimiliki', mereka juga merupakan penarik orang ramai yang hebat, membantu organisasi untuk menarik dan mengekalkan bakat yang baik.

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:

• Kesihatan
• 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:

• Apa yang merangkumi faedah kesejahteraan kewangan, dan apakah hadnya?
• Adakah majikan akan menawarkan sokongan pembayaran pendahuluan, atau adakah ia akan dibayar balik?
• Apakah kelayakan untuk memanfaatkan faedah tersebut?
• Apakah implikasi cukai faedah ini?
• Apakah prosedur apabila pekerja berhenti?

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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