Your employees are stressed about money. Here’s why your HR team should care—and what it should do
Employees are feeling more financial stress these days—and it isn’t just centered around healthcare costs or retirement worries. Today, more than half (52%) cite the rising cost of living as their greatest economic worry, while 46% are struggling to meet household expenses on time, according to PwC’s 2026 Employee Financial Wellness Survey . One in four respondents say they often or always run…
According to PwC's 2026 Employee Financial Wellness Survey, a significant portion of employees are experiencing financial stress, with 52% citing rising living costs and 46% struggling to meet their household expenses on time. Financial expert Stacey Berk notes that wage stagnation, inflation, higher interest rates, and energy costs have taken a toll on household budgets.
This stress can lead to distractions and absenteeism, as financially anxious employees spend an average of three or more hours dealing with financial issues at work. Moreover, nearly three-quarters of these employees report that financial stress affects their mental health and sleep. HR consultant Stacey Berk emphasizes that employee wellness is crucial for overall team performance.
Cyber Guardian Consulting Group, a cybersecurity firm employing around 200 people, has taken a proactive approach to addressing employee financial well-being. CEO Nick Martin, who grew up in a household of modest means, recognizes the importance of offering benefits that directly address employees' specific needs. He has extended employer-provided health insurance, co-pay reimbursements, and introduced pet health insurance, as well as a mortgage rate reduction program to help employees manage housing costs amid rising interest rates.
By focusing on benefits that employees actually utilize, Martin has maintained a low turnover rate and high productivity levels. Financial psychologist Rikki L. Rogers supports this approach, as she sees a rise in financial stress and frustration among couples she works with. She recommends providing an employee assistance program (EAP) as a vital resource to help employees manage stress and improve overall mental health and workplace well-being.
However, Berk and Rogers stress that it's essential to tailor benefits to the specific needs of the workforce, rather than offering an overwhelming array of choices that could lead to "choice overload." Employers should gather data on employee benefits usage to make informed decisions about the most effective programs to implement.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
