Finances continue to be one of the biggest sources of employee stress. In this week’s blog we talk about how employees are feeling, the impact of financial stress on the workplace and how employers can help with this important aspect of well-being.
What is financial stress in the workplace?
Financial stress looks different for everyone. The rising cost of groceries and gas, being able to afford a mortgage, paying for childcare, saving for retirement and paying down student loans are examples of financial stress that affect many American workers across the financial spectrum.
In fact, data shows 80% of Americans—regardless of their income level—are worried about the affordability of everyday living costs. Nearly nine in ten U.S. adults felt some form of financial stress at the beginning of 2026 ; 77% said they experienced a financial setback in 2025.
Gen Z is more likely than other generations to feel stressed about money. Motley Fool finds 62% of Gen Z say they’re stressed more than three days a week, and 20% say they feel financial anxiety every day. Millennials and Gen X are also stressed about their finances—58% of millennials and 61% of Gen X feel anxiety about finances at least three days a week.
Money is definitely weighing on employees these days, causing them to feel “financially stuck,” put off major life milestones like purchasing a home and impacting their ability to be productive at work.1
Let’s take a closer look.
Why financial stress in the workplace matters.
Since it’s virtually impossible to separate our personal and work lives, employees may bring stress about finances into the workplace. The effects of employee financial stress on an organization include:
Distraction and reduced productivity.
Data from Sofi’s 2024 survey, The Future of Workplace Financial Well-Being, finds employees are spending nearly 14 hours a week dealing with financial issues—with almost half (8.2 hours) taking place on the job. One in three employees say financial issues impact their ability to focus at work, and nearly 25% say the stress reduces their productivity and confidence on the job.2
Employee distraction due to finances has cost implications for any business. Data shows employees lose seven hours of productivity per week due to financial stress, costing employers $183 billion annually.
Lower engagement and retention.
When employees are experiencing financial stress, engagement and morale can also suffer. PwC’s 2023 Employee Financial Wellness Survey found that among employees who are stressed about their finances, just 50% feel energized by work, versus 68% of non-financially stressed employees. Financially stressed employees are more likely to be less satisfied with their jobs and twice as likely to be looking for a new job.
Poor physical and mental health.
Financial concerns, like other sources of stress, can significantly impact physical and emotional health. Effects may include increased irritability, headaches, mood swings, appetite changes and stomach issues, fatigue, and/or insomnia. Left unchecked, these symptoms can worsen and may lead to mental health concerns like anxiety, depression, or even suicide.
Negative health effects naturally impact absenteeism at work. A report from TIAA finds 42% of U.S. adults say money negatively impacts their mental health, and financial stress has resulted in a 34% increase in absenteeism and tardiness. Financially stressed employees also miss about twice as many days each year compared to their unstressed counterparts.3
How employers can help alleviate financial stress.
Given the workplace impacts of financial stress, it’s in every employer’s best interest to support employees in managing it. The good news is that financial wellness programs are becoming more widely accepted by employers as an important benefit to offer. More than two-thirds (70%) of employers engaged in some sort of financial wellness initiative in 2025, up from 59% the year before, according to EBRI research.
A Transamerica report notes that by the end of 2026, almost half of employers expect to offer their workers a comprehensive financial program.
Here are some suggestions for actions employers can take to help employees achieve better financial wellness:
Consider the financial wellness needs of all types of employees.
Your workforce likely includes people from different backgrounds, life stages and income levels. Some may want to pay off student loans or save for their first home; others are budgeting for a growing family, or planning for retirement. Those earning hourly wages—approximately 80.5 million workers 16 and older in 2023—face unique concerns making ends meet, and may need short-term loans or real-time access to their earned but unpaid wages.
Pro-tip: Make sure to ask employees what they value in a financial wellness program through a pulse survey or focus group. And be sure to follow up with the actions you’ll take.
Take stock of the benefits you already have that employees may not be taking advantage of.
Chances are you already offer several programs that help employees with financial wellness—they just may not be branded as such. Make sure employees know about any 401(k) matches you offer. Many 401(k) administrators also offer free financial education and resources. Remind employees about Health Savings Accounts, which allow them to use tax-free money now to pay for medical expenses or save the money for medical expenses in retirement. Your Employee Assistance Program (EAP) likely offers assistance with financial wellness, too.
Offer a financial wellness program through an external vendor or package publicly available tools for a DIY approach.
Many companies choose to work with an external partner to offer a full suite of financial wellness tools, coaching and education. These could include mobile apps to help with budgeting and saving, calculators to model savings for retirement, one-on-one sessions with a financial coach, or self-paced mini courses to teach personal finance basics. If you have a corporate well-being program, chances are it features some aspects of financial wellness. For example, our WebMD participants have access to financial wellness resources through our partner, Enrich. If budget doesn’t allow for a full-fledged program, promote resources available from the Consumer Financial Protection Bureau, National Credit Union Administration, America Saves, or the Financial Literacy and Education Commission.
Make sure employees know about your financial wellness resources.
If you provide a financial wellness program, be sure to communicate it. A splashy launch followed by a regular cadence of communication will ensure that employees who aren’t quite ready to dig in to all the resources now will know just where to go when they are ready. It’s also important to reinforce that accessing financial wellness services is completely confidential, and the employer will not receive any personal information about its employees’ financial situations.
Financial wellness, just like physical and mental well-being, is a workplace issue, and one that will continue to impact employee productivity, health and engagement, especially in these uncertain economic times. For help devising a strategy to add financial wellness to your well-being program, contact us at connect@webmd.net or request a demo.
