Workers Turn to Employers to Provide Paycheck-Linked Financial Guidance
Employees increasingly rely on plan sponsors to offer effective workplace benefits and financial guidance, as many continue to struggle with financial stress.
Findings from SAVVI Financial’s “Every Dollar Counts” report shows that 83% of employees are confident in the financial advice they receive from their employer, and 76% would like their companies to simplify paycheck and benefits choices. This includes 88% of respondents who want to navigate payroll tools as simple as their favorite apps, and 95% who want guidance that integrates debt, savings, benefits, insurance, and retirement planning.
“This report highlights a critical disconnect: employees aren’t ignoring their finances, they’re overwhelmed,” said Brian Harrison, president of SAVVI Financial. “Employers have a unique opportunity to close that gap by bringing guidance directly to the source of financial decision-making – the paycheck. When every dollar is optimized, employees gain confidence, and organizations capture the full ROI on their compensation and benefits investments.”
The research shows an underutilization of key benefits, including professional development stipends (54%), tuition assistance (53%), wellness stipends (43%), childcare/dependent care accounts (49%), and commuter/transit accounts (30%).
It also highlights the importance of innovative payroll tools and perceives the benefit as more than an income resource. Rather, the research likens it to a “financial toolkit” that contributes to long-term financial strength, with components including base salary, retirement contributions, pre-tax accounts, benefits, insurance, emergency savings, and tax withholdings all embedded into one dashboard.
When actively managed, these components could lead to realized returns and financial security. Without it, employees could struggle to navigate finances and retirement.
“Financial uncertainty isn’t a lack of awareness, it’s a lack of guidance that connects today’s paycheck to tomorrow’s security,” Harrison added. “By equipping employees with tailored, real-time insights, employers can ensure every dollar earned has purpose and every benefit delivers value.”
Innovative payroll tools are increasing in demand as financial stress rises for workers. SAVVI Financial’s research shows a surge in financial-driven stress, at 51% who report feeling more anxious over finances compared to a year ago. This stress was driven by inflation for 80% of respondents, while others listed debt (57%), housing costs (44%), and healthcare-related bills (26%) as common stressors.
The uncertainty, coupled with a need from businesses to retain competitive benefits, has led some employers to offer modern payroll platforms and paycheck-linked financial guidance.
SAVVI Financial’s research surveyed 604 full-time U.S. workers with access to employer-sponsored benefits. More information on the research can be found here.
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.