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Today, employees navigate an increasingly complex world where they are focused on supporting their families, creating retirement nest eggs, and balancing long and short-term costs. Though financial planning is a long-term journey, short-term circumstances may create uncertainty for employees as they work to build their financial future.
We see this reflected in recent research: data from Bank of America shows the overall financial wellness score for employees was 49 (out of a possible 100 points) in March 2025, which leaves room for improvement for employers. This only becomes more complex when considering that these impacts are especially amplified for some groups of employees, like women and caregivers, who both have lower financial wellness scores than their male and non-caregiver counterparts.
The weight of holistic employee health
Employees rely on their employers for their financial wellness, but they also rely on them across other dimensions of wellbeing. This isn’t surprising considering how much of our lives we spend at work. Bank of America data shows that employers feel the weight of this: 95% of employers feel at least somewhat responsible for their employees’ wellness.
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So, how can employers support the wellness of their employees – financial, physical, and mental? One way to accomplish this across multiple dimensions is through comprehensive workplace benefits.
Workplace benefits as a mutually beneficial solution
Workplace benefits can help build a less stressed and more productive workforce. Bank of America data found that 42% of employers offering resources to support overall employee wellbeing have seen a reduction in employee stress. Reducing the stress of employees can improve productivity, lead to better team collaboration, and produce a happier, healthier workforce, thereby allowing employees to weather changes to their environment. Almost 40% of employees say that competitive workplace benefits are the reason they stay with their employers, and employers who provide wellness benefits see higher rates of retention, so it’s a strategy for keeping talent as well.
McKinsey research shows that good holistic health in employees is most strongly predicted by workplace enablers, demonstrating that employee holistic health (encompassing spiritual, physical, mental and social health) is tied to employer actions beyond just financial health.
Though smart benefits and programs can help employees thrive all year long, this support is especially important during times of uncertainty, when many employees may be concerned about their financial wellbeing – which can potentially impact their mental health as a result.
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Tools and tactics for employer support have meaningful impact
As employees navigate uncertain moments, it’s critical that employers provide support to employees by offering flexible benefits and resources that help them meet their financial goals and support their individual holistic wellness. Every company and employee is different, but this can include:
Expanding financial educational tools, such as financial planning seminars. Online financial tools to measure financial wellness and identify steps to improve was the top benefit wanted from employers, when employees were surveyed.
Considering smart 401(k) plan design like auto-enrollment, which can help employees start saving for retirement more easily. Auto-increase is another smart plan design that can help your employees steadily increase contributions without needing to manually update their rate each year. Employers can also consider adding a 401(k) match, which will not only help encourage your employees to participate in the plan but also help them reach their retirement savings goals faster.
Providing a list of more personalized resources available to employees, including 401(k) and benefits provider overview or information on how to connect with a financial advisor. Our research shows that employers tend to under-communicate about workplace benefits, leaving many employees unaware of these great resources. Employers can help improve their employees’ financial wellness by continually communicating about the benefits available to them and empowering employees to take full advantage of them.
Improving communication around existing mental and physical wellness programs. For example, 48% of employees want their company to offer a Lifestyle Spending Account (LSA), which can help employees pay for a range of wellness expenses and encourage healthy behaviors. 29% of employers currently offer an LSA, but employees may not be aware.
The road ahead for employers and employees
Employers can have a significant impact on the wellness of their workforce by offering real-time guidance for their employees’ real-life needs. Beyond just planning for retirement in the long-term, they can offer guidance for every step of the journey, from caretaking to individual health care needs. As employees look to navigate the future, offering strategic workplace benefits will become more important than ever for employers.
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