Employers increasingly recognize that financial wellness programs are essential to employee well-being, productivity, and retention, as financial stress is closely linked to absenteeism, burnout, and reduced engagement. A comprehensive financial wellness program should address multiple dimensions of financial health, including budgeting and debt management, emergency savings, retirement readiness, student loan support, and access to financial education through workshops, digital tools, or individualized coaching. Employers should begin by assessing workforce needs through surveys or utilization data and selecting vendors that offer objective, noncommission-based guidance. When designing these programs, organizations must evaluate tax and Employee Retirement Income Security Act (ERISA) implications, particularly when benefits involve retirement planning services, employer contributions, or incentives tied to participation, to determine whether the program constitutes an employee benefit plan subject to reporting and fiduciary obligations. By investing in financial wellness, employers demonstrate a commitment to holistic employee support while strengthening workforce stability and organizational resilience.
Key Takeaways for Employers
- Address Core Financial Needs Across the Workforce:
Design financial wellness programs that include budgeting tools, debt management resources, emergency savings support, retirement planning education, and access to financial coaching. Tailoring components to different life stages helps ensure relevance and increases employee participation. - Link Financial Well-being to Business Outcomes:
Supporting employee financial health can reduce stress-related absenteeism, improve engagement, and strengthen retention. Employers should view financial wellness as a strategic investment in workforce stability and overall organizational performance. - Evaluate ERISA and Tax Implications Early:
Determine whether program elements qualify as an employee benefit plan subject to ERISA requirements, particularly when offering retirement-related services or employer-funded incentives. Review tax treatment of employer contributions, stipends, or rewards to ensure proper reporting and compliance. - Protect Privacy and Maintain Nondiscrimination:
Ensure financial wellness offerings safeguard employee data and provide equitable access across job classifications and income levels. Programs should avoid designs that unintentionally favor highly compensated employees. - Select Objective and Credible Vendors:
Partner with providers that offer unbiased education and coaching rather than commission-based financial products. Vet vendors for data security practices and compliance support. - Integrate Programs into Existing Benefits Strategy:
Align financial wellness initiatives with health, retirement, and employee assistance programs to create a cohesive benefits experience and reduce administrative complexity. - Measure Impact and Adjust Over Time:
Track participation, employee feedback, and key workforce indicators to evaluate program effectiveness and guide continuous improvement.
SHRM Resources
- Financial Wellness Programs Can Boost ROI amid Rising Stress
- How to Empower Employees and Reduce Stress with Innovative Financial Tools
- Workers Look for Employer Help as Financial Well-Being Dips
- How to Support Employee Financial Literacy — And Why You Should
- Unlocking the Full Potential of Financial Wellness Benefits
- Employee Financial Wellness Inches Up After All-Time Low
- Podcast: Why Financial Wellness Is Now an Employee Experience Issue (Honest HR)
Law Firm Articles
- Fiduciary Risk in a Financial Wellness World | Trucker Huss
- Financial Wellness Benefits: A Growing Priority for Employers | Nixon Peabody
Additional Articles & Resources
- 5 Financial Wellness Tips Your Employees Will Thank You For | Enrich
- Employee Financial Wellness Program: What Is It and How Can It Benefit a Small Business? | Paychex
- Financial Wellness Programs for Employees in 2025 | Workhuman
- How to Implement Financial Wellness Programs for Employees | Your Money Line
- Understanding Employee Financial Wellness Programs & Their Benefits | Omni HR
- Measuring the Impact of Financial Wellness Programs |Plan Sponsor
- 2023 PwC Employee Financial Wellness Survey | PwC
SHRM Ask an HR Advisor
Get expert help on a wide range of HR topics. As a free benefit exclusively for members, you can access experienced, certified HR Advisors by phone, chat, & email
Connect with an HR Advisor now: https://www.shrm.org/hrhelp
SHRM Members' Survey
Tell us what you think about the Express Request self-service feature in a few quick questions.
Was this resource helpful?
Validate your HR expertise
Earning your SHRM-CP credential makes you a recognized expert and leader in the HR field.
Related Content
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
As artificial intelligence technology continues to develop, the demand for workers with the ability to work alongside and manage AI systems will increase. This means that workers who are not able to adapt and learn these new skills will be left behind in the job market.