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Beyond Paycheques: Why Financial Wellness Must Anchor Your People Strategy

By: Venngo Inc. on Jul 16, 2025 3:08:43 PM

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The High Cost of Financial Stress on Employee Wellbeing 

Employee financial stress is not merely a personal concern; it significantly impacts workplace performance. Nearly half of employees (47%) report losing sleep due to financial worries, and over a third (36%) miss work because of financial problems (HR Brew Webinar, 2025). On average, financially stressed employees lose over seven hours per week managing financial concerns (HR Brew Webinar, 2025). Consequently, when employees face financial stress, businesses see increased absenteeism, distraction, and burnout. 

Financial stress affects mental and physical health, causing increased anxiety, depression, and conditions like hypertension (EarnUp, 2024). Additionally, financially stressed employees have higher burnout rates and lower job satisfaction, exacerbating workplace challenges and creating additional challenges for leadership and HR professionals (HR Brew Webinar, 2025). 

According to PwC's 2024 Employee Financial Wellness Survey, financially stressed employees are nearly five times more likely to be distracted at work and more than twice as likely to be looking for a new job (PwC, 2024). These findings underscore how financial health directly influences focus, morale, and long-term workforce stability. 

Turnover and Retention: Why Financial Wellness Matters 

High turnover is costly, with financial stress being a significant driver. Replacing an employee can cost up to 150% of their annual salary when considering recruitment, training, and lost productivity (EarnUp, 2025). Financial stress frequently motivates employees to seek higher-paying roles, increasing turnover rates. 

Conversely, employees who feel financially secure demonstrate greater loyalty and retention. Workers confident about their finances are 20% more likely to stay with their employer (HR Brew Webinar, 2025). Employers demonstrating genuine concern for employee financial wellbeing experience reduced turnover, making financial wellness initiatives strategic investments in workforce stability. 

The McLean & Company 2025 HR Trends Report also notes that retention strategies are increasingly tied to wellbeing initiatives, with financial wellness identified as a key area where high-performing HR teams are investing (McLean & Company, 2025). Companies that prioritize financial wellbeing report stronger employee engagement and retention metrics. 

Total Rewards Packages: Bridging the Financial Wellness Gap 

Total rewards packages in Canada typically include salary, paid leave, health benefits, and retirement contributions. However, financial wellness remains an overlooked component. Failing to address this need results in productivity loss and higher employee turnover. 

This need is best recognized in the notable gap that exists between employee expectations and employer offerings regarding financial wellness support. Approximately 66% of employees prioritize financial wellness benefits, yet only 23% of employers align their strategies accordingly (HR Brew Webinar, 2025). Employees increasingly seek assistance with budgeting, managing debt, and short-term financial planning rather than solely traditional retirement savings.  

Forward-thinking employers integrating financial wellness into total rewards showcase a clear commitment to comprehensive employee wellbeing. In fact, 73% of financially stressed employees say they would be more attracted to another company that cares more about their financial wellbeing (PwC, 2024). 

Benefits of Financial Wellness Programs: A Win-Win Investment 

Investing in financial wellness programs pays off. Employees experiencing lower financial stress are more engaged, productive, and creative in their roles (HR Brew Webinar, 2025). Financial wellness initiatives have been linked to improved attendance and better overall usage of benefits, indicating higher employee engagement and satisfaction. 

As alluded to above, financial wellness programs also enhance an organization's ability to attract talent, especially in uncertain economic climates. According to recent data, 91% of employers offering financial wellness benefits reported greater competitiveness in recruitment (HR Brew Webinar, 2025). Companies providing comprehensive financial wellness support signal a culture of care , which in turn continues to boost morale and foster employee loyalty. 

Building a Culture of Financial Wellness 

For financial wellness initiatives to succeed, they must be deeply embedded within organizational culture. Openly discussing monetary stress and normalizing seeking assistance are essential first steps (HR Brew Webinar, 2025).  

Integrating financial wellness into the core of total rewards packages reinforces the importance of financial health alongside physical and mental wellbeing. Employers can implement emergency savings accounts, debt relief programs, and educational resources tailored to Canadian financial realities (HR Brew Webinar, 2025). Training managers to recognize financial stress indicators and respond supportively further enhances employee wellbeing. 

As PwC notes, organizations must move beyond financial literacy to financial empowerment - providing tools, technology, and personalized support to help employees take meaningful action (PwC, 2024). 

A Strategic Imperative for Wellbeing and Performance 

Financial wellness is increasingly being seen as essential rather than optional for truly comprehensive wellbeing strategies. Employees with financial security are typically healthier, happier, and more productive. Strategic attention to financial wellness reduces absenteeism, boosts productivity, and lowers turnover costs significantly (HR Brew Webinar, 2025). 

By prioritizing financial wellness, employers build trust, loyalty, and deeper engagement with their workforce. Financial wellness initiatives are foundational components of robust employee wellbeing strategies, fostering healthier, more committed, and higher-performing teams. 

References 

  • Closing the Gap: The Missing Link in Total Rewards:  https://smartdollar.dock.us/general-webinar-attendee-resource-hub-Icqn3PRm2Edd/oeaqXFeQTmn4