How and Why You Should Prioritize Employee Financial Wellness

As the cost of living and health care rates increase, so does the need for financial support and wellness among employees. Across all industries, the workforce is demanding better benefits and perks, specifically those that focus on lowering premiums, offering stipends, and providing cost savings. The lack of financial support, combined with the skyrocketing everyday costs, is causing a rising wave of stress and uncertainty among the population, leaving individuals searching for a viable solution.

As an employer, it’s important to provide resources and tools that promote your employees’ health and wellness, both in and out of the workplace. While there are many ways to support your employees during this time of economic uncertainty, selecting the most impactful solution can be challenging. Continue reading to learn how you can support your employees’ financial well-being.

Financial Well-Being

Financial wellness refers to the ability to comfortably meet your current financial obligations and expenses. In other words, it means having financial freedom to live your life to the fullest. Although financial wellness may look different for each individual, it offers similar benefits for everyone. Achieving financial wellness can lead to various positive outcomes, including:

Improved mental and physical health
- Financial concerns and uncertainty can cause stress, depression, hypertension, and sleeplessness. With greater financial stability, people often have lower anxiety, leading to more energy and mental clarity.
Flexibility and confidence
- Financially stable individuals have more flexibility and confidence in their purchasing choices.
Long-term stability
- With access to greater funds, individuals can invest in their long-term health and financial future. They can invest more money in their retirement, focusing on long-term care and longevity.

When an employee is financially stable, they contribute more to your company, offering you a myriad of benefits, including:

Greater engagement and productivity
- When employees are financially secure, they can concentrate more on their work and perform their responsibilities with greater care and intention, reducing mistakes and improving overall efficiency.

Increased retention
- If an employer offers a great salary and financial wellness programs, they are showcasing their loyalty and dedication to their employees’ well-being. The more you invest in your workforce, the more likely they will stay.

Stronger company culture
- When employees are financially secure and receive support from their employer, they tend to be more committed to their jobs and demonstrate greater loyalty to their company. When an employer prioritizes employee safety and well-being, it fosters a stronger sense of trust.

Ways to Improve Employee Financial Wellness

As stated previously, employee financial wellness is incredibly important for your workforce and your company. Prioritizing financial wellness improves productivity, efficiency, loyalty, and morale. But what policies should you implement to promote financial stability?

Provide a retirement plan

While there are a variety of retirement plans employers can offer, each one provides a resource for future financial planning. Whether you match an employee’s contribution or just offer the plan, you’re granting employees access to a retirement plan and leading them one step closer to long-term stability.

View the table below to see the 2025 and 2026 contribution limits set by the Internal Revenue Service.

Plan Type	2025 Limit	2026 Limit
401(k), 403(b), 457, TSP	$23,500	$24,500
IRA	$7,000	$7,500
Catch-up (Age 50+)	$7,500	$8,000
IRA Catch-up (Age 50+)	$1,000	$1,100

Offer financial education

In order for someone to be financially stable, they must understand what it means and how to achieve it. Conduct workshops, host webinars, or hold meetings centered around debt management, retirement planning, budgeting, and more to help your workforce gain a deeper understanding of financial best practices.

Offer earned wage access (EWA)

Earned wage access (EWA) allows employees to access a portion of their earned wages before their payday. Employees usually use this program to help pay for immediate expenses like credit card bills or rent. An EWA program reduces stress, increases productivity, and promotes financial stability among the workforce.

Offer a group health care plan

Help your employees battle rising health care and prescription drug costs by offering a group health plan. With a group plan, you can leverage group buying power, providing access to benefits that smaller companies usually cannot afford. Group health plans expand benefit plan options and reduce premiums.

The Key to Financial Wellness: Group Management Services

Achieving financial stability is a daunting task as an individual, but as a business owner managing multiple people, it can seem impossible. But with a professional partner like Group Management Services (GMS), achieving financial stability and providing support is possible.

With GMS’ Master Health Plan, we can offer customizable group health coverage plans with affordable rates, lower premiums, and a variety of supplemental insurance options. This can save you an average of 24% on employee premiums and 15% on family plans.

GMS’ team of experts can also develop training and presentations for your team on financial best practices, budgeting, and more. GMS can help you support your employees’ financial health through our supplemental insurance offerings, 401(k) plans, and beyond.