The Financial Resilience Blueprint

Financial stress has continually reared its head among US employees over the past decade, characterized by the global pandemic, inflation, and other moments of financial instability that trickle down to people and their financial lives. 

There has been a growing recognition by many areas of society that changes need to be made, and urgent support put in place, to ensure that workers are able to foster financial resilience against these pressures — the leader of this change has been employers. 

The Employee Perspective: The Burden of Financial Stress

To understand the ugly truth of the impact of financial stress on employees, you only have to skim the surface of the data surrounding the subject:

• Financial concerns are a top concern for American employees — 62% worry about money at least once a week and 23% (nearly a quarter) worry about money every single day
• Low savings are a problem: 45% of US employees have $500 or less saved, and 34% have $300 or less saved
• 40% of employees have “fair” or “poor” credit scores

This paints a stark picture of the financial vulnerability experienced by a significant portion of the US workforce. This environment of persistent financial strain creates a heavy burden for employees, impacting their daily lives and overall wellbeing.

The Employer Opportunity: A Strategic Imperative

Employers are the natural fit when it comes to supporting US workers. After all, employers have the most important financial relationship with their employees as they are the ones who pay them. 

This level of trust places employers in a unique position to make a real difference. Supporting employee financial resilience isn't just a socially responsible move; it's a strategic imperative that yields tangible business returns. 

In fact, research from Censuswide found that only 39% of US employees believe that their employer cares about their financial health. Clearly, there’s an opportunity for today’s employers to make an impact. Forward-thinking organizations are beginning to recognize that fostering financially resilient teams translates to a more engaged, productive, and loyal workforce.  

The Business Case: Tangible Returns on Investment

The data speaks for itself: investing in employee financial resilience drives positive business outcomes.

• Engagement & Productivity (unlocking peak performance): When organizations prioritize their employees' financial wellbeing, they witness a significant uplift in engagement and productivity. Companies that invest in savings support see an average increase of 43% in employee engagement and a 40% rise in productivity. Employees who are empowered to build savings feel a greater sense of pride (33%) and report improved wellbeing.
  
  
• Stress Reduction (clearing the mental fog): Financial stress is a productivity vampire, and has a direct impact on the workplace. 31% of employees report that financial stress negatively affects their work performance. By providing tangible financial support, employers can reduce this stress and free up employees' mental bandwidth, allowing them to better focus on their work.

Creating a Win-Win Scenario

Ultimately, fostering financial resilience creates a win-win scenario for both employees and employers. By taking a holistic approach and offering long-term solutions that address the fundamental "cost of life," not just the immediate "cost of living," companies can build a stronger, more stable workforce. This requires moving beyond generic, one-size-fits-all benefits and providing a comprehensive suite of support that empowers every employee to achieve genuine and lasting financial resilience. 

In today's world, where financial uncertainty is a constant presence, employers that prioritize and invest in the financial wellbeing of their employees are the ones that will thrive.


Read more in our latest report: The Missing Metric.