HR Research

Only 14% of respondents report having a deep understanding of the financial health of their workforce, highlighting that many organizations still have a long way to go in recognizing and addressing their employees' financial needs, according to a new study from the HR Research Institute.
 

In comparison, about half (51%) say they understand it “somewhat,” based only on sporadic data. This leaves 36% with little to no understanding at all.

The HR.com report, HR.com’s State of Financial Wellness 2025, examines employee financial stressors and how businesses can foster a healthier, more motivated workforce, highlighting the growing need for financial wellness programs. The study uncovers a critical gap in organizational understanding of employees’ financial well-being.

A key finding reveals that debt has surpassed inflation as the number one financial stressor, affecting 68% of employees. This shift underscores the growing need for organizations to provide support in managing employees’ financial burdens.

Despite the clear need, there is a lack of financial wellness programs. Only 39% of organizations have or are considering implementing an employee financial wellness program aside from retirement programs. The barriers to adoption include:
 

• Budget constraints or lack of funds (48%)
• More pressing priorities (36%)
• Insufficient buy-in from senior management (34%)

Further analysis highlights the fact that employee demand for support exists. Respondents overwhelmingly indicated that employees would benefit from financial wellness initiatives, with specific areas of interest being:
 

• Budgeting support (56%)
• Debt management resources (53%)
• Personalized financial advice (47%)
• Retirement planning assistance (47%)

AI-powered financial tools are also gaining traction, with employees expressing the most interest in AI-driven budgeting (56%), debt management (53%), and personalized financial advice (47%).

"Employee financial stress isn’t just personal—it’s a business issue," said Debbie McGrath, CEO of HR.com. "Investing in financial wellness support initiatives will boost productivity, engagement, and retention."


 
Error: No such template "/CustomCode/topleader/category"!