Your Employees Are Stressed About Money. You Have Three Options.

Even in the best of times, money stress is a constant companion for many employees. But in today’s climate—with a jittery economy, stubborn inflation, and the looming possibility of new tariffs—those everyday worries are turning into all-out pressure cookers.

Financial stress doesn’t clock out at 5 p.m. It shows up in productivity, absenteeism, turnover, and team morale. So what can you do about it?

As an employer, you’ve got three options. Let’s break them down—no shame, just strategy.

Option 1: Do Nothing

The “Let’s just see how it goes” approach.

This option is easy to implement—because, well, you don’t have to implement anything. But here’s the quiet cost: your team’s money stress doesn’t disappear. It just festers.

• Productivity Loss: Financial stress can lead to significant productivity losses. For instance, in an organization with 200 employees, distraction due to financial stress could result in 7,521 hours of lost productivity annually, costing the business approximately $208,000 per year. source

• Health Impacts: Employees dealing with financial stress are twice as likely to report poor overall health and four times as likely to suffer from sleep problems, headaches, and other illnesses.

• Absenteeism and Turnover: Financial stress contributes to increased absenteeism and higher turnover rates, which can further disrupt business operations and increase recruitment costs. 

  
  

It’s not about being heartless—it’s often about being overwhelmed. But the truth is, silence on financial wellness sends a message too.

Option 2: Give Everyone a Raise

The compensation strategy

Raises are great. Everyone loves more money. But they aren’t a magic bullet. Without the skills and support to manage finances well, even bigger paycheques can vanish into thin air (or into another Buy Now Pay Later plan).

This approach also isn’t always financially sustainable—especially in tight-margin industries or unpredictable markets. And it can raise expectations without addressing the root issue: how employees feel about their money and what they do with it.

Raises can be part of the solution. But they’re not the solution.

Actionable Steps:

• Targeted Compensation Adjustments: Conduct market analyses to ensure salaries are competitive and adjust compensation where necessary to retain top talent.

• Performance-Based Incentives: Implement bonus structures or profit-sharing plans that reward employees for meeting specific goals, aligning their success with the company's performance.

• Transparent Communication: Clearly communicate the rationale behind compensation decisions to build trust and understanding among employees.

Option 3: Invest in Financial Wellness

The “Support people where it really counts” strategy.

This is the sweet spot. You don’t need to solve everyone’s financial life, but you can show up in a meaningful way.

Providing access to financial education, personalized support, and tools that help employees feel in control of their money isn’t just good-hearted—it’s smart business. Financially well employees are more productive, more loyal, and more present.

Think of it like offering a gym membership for their money muscles—minus the sweaty towels and questionable playlists.

Tangible Actions:

• Financial Education Programs: Offer workshops or online courses on budgeting, debt management, and retirement planning to empower employees with financial literacy.

• Access to Financial Advisors: Provide opportunities for employees to consult with financial professionals for personalized advice.

• Emergency Savings Initiatives: Implement programs that encourage and facilitate the building of emergency funds, such as employer-matched savings plans.

• Flexible Pay Options: Introduce earned wage access programs that allow employees to access a portion of their earned wages before payday, helping them manage cash flow.

• Wellness Spending Accounts: Offer accounts that employees can use for financial services, such as financial planning or credit counseling.

• Regular Financial Check-Ins: Encourage managers to have periodic, confidential conversations with employees about financial wellness resources and support available.

The Government of Canada has some great free resources and information can get your started with an internal program: Financial wellness in the workplace

The Benefits:

• Increased Productivity: Employees who are less stressed about finances are more focused and productive at work.

• Reduced Absenteeism: Financial wellness programs can lead to lower absenteeism rates as employees experience improved mental and physical health.

• Enhanced Employee Engagement: Employees feel valued and supported, leading to higher engagement and morale.

• Talent Attraction and Retention: Offering financial wellness benefits can make your organization more attractive to potential hires and help retain existing employees.

Bonus Option: Combine & Customize

You might give modest raises and support financial wellness. You might pilot a program before going all in. The key is this: show your employees that their financial wellbeing matters—not just to them, but to you too.

Because when people feel supported, they don’t just stay—they thrive.