Financial Stress May Lead Employers to Rethink Benefits Strategy
A new benefit trends report names financial stress as a silent productivity killer.
The U.S. Benefit Trends study by NFP lists employee challenges, like rising workplace benefit costs and growing financial burdens, as impacts to employee engagement and retention.
According to the findings, close to half of employees believe healthcare budgets will increase within the next plan year, even as two in five have less than $500 in emergency savings.
“Across industries, leaders are shifting from a transactional view of employee benefits to a more purposeful approach that balances financial stewardship with the responsibility to support a workforce under growing strain,” said Doug Hammond, CEO of NFP. “Employers that interpret this complexity and intently align their benefits offerings to organizational resilience and the employee experience will position themselves for success.”
Financial wellbeing ranked as the largest disconnect between plan sponsors and employees. Only 35% of employers offer a structured financial wellbeing program that includes tools and coaching, even as over a quarter of workers list money is a top workplace stressor.
Employees named debt, caregiving, and affordability of basic expenses as stressors that impact their focus at work, with worries over elder care growing from 22% to 28% over the course of a year.
“Financial wellbeing isn’t about quick fixes. It’s centered on connecting everyday choices to long-term security,” said Beth Robertson, co-leader of Health and Benefits at NFP. “When employers expand wellbeing to address the broader systems that shape daily life, such as ensuring that financial education, coaching and plan design align, confidence soars, participation climbs and organizations gain stronger retention and stability.”
The findings come as more employees name financial wellness as a top workplace benefit, and as a growing number of advisors shift their focus to prioritize financial wellbeing as a core service.
Another report contends that employers are concerned over workers’ financial wellbeing. A study from the Employee Benefit Research Institute (EBRI) found that 48% of plan sponsors rated concerns over financial wellness at a 9 or 10 on a scale of 1 to 10, up from 43% in 2024 and 39% in 2023.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.