Employees have been through a period of extreme economic volatility and financial turmoil over the past several years. From the COVID-19 pandemic to exploding inflation in 2022 and 2023, employees endured a relentless series of economic shocks that have kept their personal finances top of mind. As financial stress has risen and economic uncertainty continues to loom, employees increasingly look to their companies for support.

Despite the growing demand for financial assistance, too many companies fail to provide it. This negatively affects employees' stress, energy, and engagement levels – all detrimental to the company's culture and productivity. HR teams can avoid these consequences and improve their workforces' health by prioritizing employee financial wellness. Financial wellness encompasses everything from retirement planning to debt management to charitable contributions, so HR teams should adopt a holistic approach to assisting employees.

HR teams can also use innovative benefits like convertible PTO – which allows employees to put the value of unused time off toward other financial priorities – to meet the diverse financial needs of their workforces. These benefits are especially attractive because they reduce the balance sheet liabilities created by large amounts of accrued PTO while improving employees' financial circumstances. No matter what approach HR teams adopt, it's clear that they need to be proactive about offering financial support to their employees in 2024.