Employee Surveys Show Financial Stress—Here’s How HR Can Take Action

Employee surveys are an invaluable way to gauge the pulse of your workforce. And if your latest survey results highlight financial stress, you’re not alone. Across industries, employees are struggling to keep up with everyday expenses, unexpected costs, and long-term financial planning. For HR teams, acknowledging these concerns isn’t enough—it’s time to take meaningful action.

Recognizing the Signs of Financial Stress

The numbers don’t lie. Here are common indicators of financial strain found in survey data:

• Employees living paycheck to paycheck
• Rising concerns over healthcare and other essential costs
• Low participation in existing financial wellness programs
• Increased requests for emergency savings options and financial planning resources

Beyond personal hardship, financial stress carries a high price for businesses. Employees under financial strain are more likely to be disengaged, distracted, and seeking new job opportunities. A PwC survey found financially stressed employees are five times more likely to be unproductive and twice as likely to job-hop. Ignoring these signs isn’t just bad for employees—it’s a direct hit to business performance.

Ted Benna’s Perspective: Rethinking Traditional Benefits

Ted Benna, often credited as the “father of the 401(k),” played a major role in shaping today’s retirement landscape. However, even he believes that the 401(k) is no longer the right financial tool for middle- and low-income earners. Why? Because traditional retirement plans don’t address immediate financial needs.

For many employees, struggling with rent, medical bills, or emergency expenses, long-term savings plans feel out of reach. This is why forward-thinking HR teams are shifting toward practical, accessible financial solutions that help employees build stability today—not just decades from now.

Turning Data Into Meaningful Action

Survey insights are only valuable if they lead to change. Here’s how HR teams can take immediate, targeted steps:

1. Analyze Trends: Are certain departments or demographics facing higher financial stress? Use this data to prioritize solutions that address the most affected employees.
2. Get Leadership Buy-in: Connect financial stress to key business metrics like productivity and retention. Securing leadership support is crucial for funding and implementing impactful solutions.
3. Define Clear Goals: Instead of rolling out generic wellness programs, establish specific objectives—like reducing turnover or increasing participation in financial programs.
4. Assess Current Offerings: Are your financial benefits relevant and accessible? If traditional programs aren’t being used, it’s time to rethink your approach.

Choosing Financial Solutions That Actually Work

Instead of defaulting to 401(k) education seminars, consider programs that solve immediate financial challenges:

• Emergency Savings Accounts (ESAs): Payroll-deducted savings help employees build a financial cushion for unexpected expenses, reducing reliance on high-interest debt.
• Debt Management Support: Tools that help employees manage and consolidate debt offer immediate relief from financial strain.
• Financial Literacy Workshops: Practical education on budgeting, saving, and managing credit empowers employees to take control of their finances.
• Student Loan Assistance: With student debt weighing heavily on many workers, employer-provided loan relief can be a game-changer for retention and engagement.

When choosing programs, keep these factors in mind:

• Accessibility: Is the program easy to use and understand?
• Affordability: Is it cost-effective for both the company and employees?
• Impact: Will it measurably reduce financial stress and improve retention?

A study by the Bipartisan Policy Center found that 30% of workers could cover only a month or less of expenses if their income stopped. This underscores the urgency of employer-driven emergency savings programs.

Strategic Implementation: From Idea to Execution

Once you’ve selected the right financial solutions, a structured rollout is key. Here’s how to do it effectively:

• Start with a Pilot Program: Test the program with a select group before scaling it company-wide.
• Set a Clear Timeline: Define key milestones to ensure a smooth rollout.
• Train Managers as Advocates: Equip managers with the knowledge to guide employees and answer their questions.
• Communicate Clearly: Use multiple channels—emails, FAQs, team meetings—to ensure employees understand and trust the new program.
• Track Results and Adjust: Monitor participation rates, employee feedback, and retention metrics. Be ready to refine the program based on real-world data.

Measuring Success: Data-Driven Impact

Rolling out a program isn’t enough—you need to measure its effectiveness. Key performance indicators include:

• Employee feedback: Are workers reporting reduced financial stress?
• Retention improvements: Are financially supported employees staying longer?
• Productivity boosts: Are engagement and performance metrics improving?
• Cost savings: Are you seeing reductions in absenteeism and recruitment expenses?

By tracking these outcomes, HR teams can make a strong case for continued investment in financial wellness initiatives.

Building a Financially Resilient Workforce

When your employee surveys reveal financial stress, it’s a signal to act. The best HR strategies go beyond traditional retirement plans and embrace holistic, practical financial wellness solutions that empower employees today.

Ted Benna’s shift in perspective serves as a wake-up call: The financial landscape has changed, and so must our approach. By prioritizing emergency savings, debt relief, and financial literacy, companies can create a workforce that is not only financially secure but also engaged, productive, and loyal.

It’s time to redefine financial wellness in the workplace. Take action, implement real solutions, and watch your employees—and your business—thrive.