Financial stress is rising. Can you feel it?

A Reuters report highlighted a growing reality inside the nation’s workforce: Financial stress is going up, and employees need relief. A Bank of America survey found only 47% of U.S. workers feel financially well, while almost 85% carry personal debt that worries them.

Employees are also increasingly seeking help with emergency savings, debt management, and financial wellness. We have to accept that financial strain is a workplace issue.

Employers feel that impact, too. Because when financial stress shows up at work, employees can’t just forget it or leave it at the door. They are living with it, and their job is affected by that.

Inflation, rising healthcare costs, debt, and economic uncertainty have been reshaping workplace dynamics for the past few years. But also, people are learning the value of being open about what they need, so employers are forced to pay attention. Most workers report concern about the economy, reflecting broader anxiety about financial stability and, especially, job security.

What it looks like in the workplace:

Reduced productivity and focus.
Increased absenteeism and presentation.
Higher turnover risk.
Lower engagement and morale.
Strain on workplace culture.

When employees feel financially insecure, collaboration, innovation, and trust can erode. The “vibe” of an organization shifts.

There’s a growing expectation that employers should help.

And in our opinion, they should! Employees look to employers for support beyond salary.

Employees don’t just want benefits. They want benefits that help them cope with real life.

Financial wellness programs, emergency savings support, and healthcare affordability are not optional, and they really aren’t “perks.” They provide stability.

For fiduciaries advising employers, this moment calls for increased awareness and proactive guidance.

There are risks tied to the full suite of benefits. Healthcare affordability and deferred care, retirement plan loans, benefit utilization, and, of course, as mentioned above, employee retention.

A benefits strategy that appears compliant on paper may fall short if it does not reflect the realities of a workplace.

As fiduciaries, we help plan sponsors ask critical questions, such as:

Are rising out-of-pocket costs discouraging care?
Are employees tapping retirement savings to meet short-term needs?
Do benefit offerings reflect current financial pressures?
Are employees aware of and using available support?

But those are just some of the questions to start asking. Forward-thinking employers are already trying to evolve benefits to meet the moment. Some of the options the survey found employers are considering adding are emergency savings programs, financial coaching, plan design optimization, online benefit navigational tools, and even retirement readiness education.

Employers that proactively address financial stress through thoughtful benefits design can strengthen trust, help teams through financial strain, and stabilize workplace culture. The right fiduciaries should be guiding them.