What's Happening?
A recent study by the Employee Benefit Research Institute reveals that employers are increasingly worried about their employees' financial wellbeing. In 2025, 48% of employers rated their concern at 9
or 10 on a scale of 1 to 10, up from 43% in 2024. This concern is driven by the rising cost of living, including housing, groceries, and utilities, which has led many employees to live paycheck to paycheck. Despite inflation easing to 2.7%, prices have risen over 25% since 2020. Employers are shifting focus from retirement planning to addressing day-to-day financial challenges faced by employees.
Why It's Important?
The growing concern among employers about their workers' financial stress reflects broader economic challenges and the impact of inflation on household budgets. As employees struggle with financial insecurity, it can lead to increased absenteeism, reduced productivity, and higher turnover rates. Employers are recognizing the need to support their workforce's financial health to maintain a stable and motivated workforce. This shift in focus may lead to the implementation of new financial wellness programs and benefits aimed at alleviating employees' financial burdens.
What's Next?
Employers may continue to develop and expand financial wellness initiatives, such as budgeting workshops, savings programs, and financial counseling services. These efforts could help employees better manage their finances and reduce stress. Additionally, as economic conditions evolve, employers will need to adapt their strategies to address the changing financial needs of their workforce.
