According to a 2025 report by H&R Block, nearly one-third of Gen Z employees changed jobs in 2023, with 35% of these transitions driven by the pursuit of higher wages.
An increasing number of employees are influenced by external financial pressures that shape their decisions to stay or leave in today’s job market. As the impact of financial wellbeing continues to grow, it’s crucial for companies to implement new strategies to reduce turnover and retain top talent.
Financial wellness has become a key focus for employers looking to boost productivity, improve employee retention, and cultivate a more engaged workforce, alongside a range of other benefits.
In this blog, Paytime explores the topic of financial wellness and its influence on employee productivity and retention.
What is Financial Wellness?
Financial wellness refers to the overall financial health of an individual: their ability to manage day-to-day expenses, save for future goals, and cope with unexpected financial stress. Financial wellness encompasses an employee’s confidence in their financial situation and their overall peace of mind regarding their financial situation.
When employees feel financially secure, they have the energy to invest in their work, making them more likely to be productive, engaged, and satisfied with their jobs. Unfortunately, dealing with financial stress can have the opposite effect.
The Impact of Financial Stress on Employee Performance and Turnover
Financial stress can significantly affect employee performance and overall well being. A 2022 report by the Australian National University (ANU) Centre for Social Research & Methods found that 25.1% of Australians are finding it difficult to get by on their current income.
Employees who are stressed about their finances are likely to feel less loyal to their employer, making them more inclined to explore opportunities elsewhere. This is particularly true if they discover better financial benefits or resources at other companies.
This can result in reduced employee performance and higher turnover rates within teams.
How Financial Wellness Programs Can Help
By offering support and resources to help employees manage financial stress, companies can enhance employee wellbeing and also overall business performance, as it is more cost-effective to retain loyal employees who are trained with years of company-specific experience.
Financial wellness programmes can take many forms, such as providing financial literacy education and workshops, offering retirement planning services, and emergency savings support.
A financial wellness programme that is growing in popularity in Australia is Earned Wage Access (EWA). EWAallows employees to access a portion of their earned wages before their scheduled payday, offering employees greater financial security and reducing anxiety caused by cash flow issues.
The Role of EWA in Enhancing Productivity and Job Satisfaction
Earned Wage Access is a tool that has been proven to enhance employee financial wellness. By providing employees with real-time access to their earned wages, EWA can alleviate the financial stress of waiting for payday, particularly when faced with upcoming bills and unexpected expenses caused by family matters, health implications or accidents.
Unexpected expenses and financial stress can have a significant impact on an employee’s overall job satisfaction. When they are financially stressed, they are less focused, less content at work, and less collaborative.
So, when employees feel that their financial wellbeing is supported by their employer, they are more likely to stay focused, perform better, and develop greater loyalty to the company.
Additionally, EWA programmes help reduce financial anxiety, which can improve employees’ mental health which in turn increases their overall job satisfaction.
The Link Between Financial Wellness and Employee Productivity
Employees who feel financially secure are likely to perform better and contribute more effectively to the company. Financial wellness programmes can help employees alleviate the distractions caused by financial worries, allowing them to focus on their tasks and contribute more effectively to the organisation’s goals.
These programmes boost individual performance whilst simultaneously also creating a positive work environment that fosters collaboration, creativity, and engagement.
It’s important to note that effective internal marketing of financial wellness programmes is crucial to the success of these initiatives. By clearly communicating the benefits of financial wellness programmes to employees, companies can create a culture of genuine support and care, encouraging employees to take advantage of the resources available to them.
Steps to Achieve Financial Wellness for Your Employees
To achieve financial wellness within your company, you should offer programmes and resources that cater to the varying needs of your workforce.
Here are some steps companies can take:
- Provide Comprehensive Financial Wellness Programs: These programmes should cover a range of topics, from financial education to debt management and retirement planning. Companies can also offer tools that help employees manage their finances, such as budgeting apps or financial planning workshops.
- Implement Earned Wage Access (EWA): Allowing employees to access their earned wages before payday can be a game-changer. EWA helps employees manage cash flow, reduces financial stress, and enhances job satisfaction, all of which contribute to increased productivity.
- Foster a Culture of Financial Support: Encourage employees to take advantage of financial wellness programmes by regularly promoting their benefits. Create an open environment where employees feel comfortable discussing their financial challenges and seeking help when needed.
- Measure the Impact: Regularly assess the effectiveness of your financial wellness programmes through employee feedback (e.g., surveys), engagement levels, and turnover rates. Adjust your programmes as needed to ensure they are meeting the evolving needs of your employees.
Blog in Summary
Financial wellness plays a vital role in boosting employee productivity, job satisfaction, and retention.
By addressing financial stress head on and providing employees with the resources they need to feel secure in their lives, companies can foster a more engaged and loyal workforce. The growing interest in Earned Wage Access (EWA)shows that implementing this financial wellness tool as part of your employee benefits can help your company stand out from competitors.
