Financial wellness support a key hiring and retention benefit, study finds

In the current environment of rising debt, cost-of-living challenges and competing financial demands, financial wellness support has emerged as a key advantage in attracting and retaining top talent, according to new research from Lincoln Financial.

The company’s latest Wellness@Work research study delivers insights from more than 2,500 full-time workers across industries and generations, exploring their perceptions of retirement readiness, employee benefits, and the support they want from their employers on their journey toward financial security.

Using this information, the company has identified three key benefit strategies that employers can use to help boost employees’ financial confidence. They are:

• Strengthen retirement benefits.
• Optimize open enrollment.
• Offer financial wellness tools.

Reasons why financial wellness support is so popular

So why is financial wellness support becoming such a key benefit for employees? According to Sharon Scanlon, senior vice president, Group Protection Product, Workplace Solutions Marketing and Customer Experience, Lincoln Financial, financial stress is a growing concern across the workforce.

She said that Lincoln’s latest Wellness@Work research shows that 78% of employees are managing at least three competing financial priorities. A significant 82% of them carry debt, and 64% said that debt is a problem, with even higher rates among younger workers (72% of Gen Z and 71% of Millennials).

“When benefits, retirement plans and financial wellness tools are thoughtfully integrated, employees gain a clearer understanding of their financial situations,” Scanlon said. “This clarity helps them make more informed decisions and can help ease financial anxiety. Employers who invest in comprehensive benefits strategies that include financial wellness tools often see stronger employee loyalty and satisfaction.”

In fact, Scanlon added, according to the research, workers who feel financially secure are twice as likely to want to stay with their employer and tend to view their benefits more positively.

Areas of concern to employees

Retirement readiness remains a top concern for employees, Scanlon added. In fact, she said, just 28% of workers said that they feel very confident about their ability to retire, and nearly half (45%) worry they may never be able to.

Additionally, 58% of employees surveyed across generations said that they want to reassess their benefits. Yet only half reported being very familiar with what their employers offer, and even fewer understand how to make the most of those options.

When asked which wellness benefits would truly stand out, employees pointed to student loan assistance (46%), mental health support (37%) and emergency savings programs (34%) as top priorities, Scanlon said.

“While financial wellness tools can help reduce stress and build confidence, they’re only effective if employees know they’re available and understand how to use them,” Scanlon pointed out. “That’s why awareness, education and ease of access are essential. Bridging knowledge gaps, especially during annual enrollment, can boost confidence, increase utilization and enhance the perceived value of benefits.” 

Enhancing financial wellness support

So, what are some of the steps that benefits advisors and plan sponsors can take to help enhance the financial wellness support employees receive? According to Scanlon, benefits advisors and plan sponsors are instrumental in positioning financial wellness as a core component of employee well-being, not just as a nice-to-have.

“Making these resources accessible and easy to understand can help employees feel more confident, financially secure and better prepared for retirement,” Scanlon said.

 Encouraging employee engagement

Scanlon added that to encourage engagement of their employees, employers can:

• Frame wellness as holistic care that encompasses financial, mental and physical health, emphasizing the connection between financial wellness and overall well-being.
• Offer Employee Assistance Programs that include counseling and mental health services
• Simplify access and improve engagement with an integrated benefits experience that’s intuitive and user-friendly.
• Provide actionable, financial wellness resources to help support student loan repayment, emergency savings, budgeting, debt management, insurance options and more.

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