After the pandemic, working from home has shifted from an exception to a standard practice. Businesses adapted quickly: meetings, deadlines, and project plans now run smoothly while employees work from their living rooms. But this transition has exposed a pressing issue—employee financial wellness. Many employers have cut salaries or reduced benefits to survive the economic fallout from COVID-19. Although financial wellness was already a concern before the pandemic, the crisis has accelerated its importance for both workers and organizations.
What does financial wellness offer?
Financial wellness programs are employer-led initiatives designed to strengthen employees’ financial health and provide practical support for managing personal and household finances. These programs can help staff improve credit scores, set and track financial goals, handle unexpected expenses, create realistic budgets, and navigate tax or debt issues. Beyond being the right thing to do, such programs make business sense: financially secure employees are less stressed and more productive, benefiting organizational performance.
Why it matters during the pandemic
Even before COVID-19, financial stress was widespread. In 2019, a study from John Hancock reported that 69 percent of workers experienced stress because of their financial situation, and 72 percent said personal financial worries affected their job performance. The pandemic intensified those problems: layoffs, pay reductions, and economic uncertainty have left many employees more vulnerable. Remote work has also shifted ordinary household costs—such as higher electricity or internet bills—onto employees, increasing their financial burden.
Research shows changing financial habits: a Travis Credit Union study found 73 percent of employees believe COVID-19 will change how they manage money. Given rising expenses and reduced income for many, employees increasingly need guidance and support to manage finances. Employers who respond to these needs can reduce employee stress and help maintain productivity during uncertain times.
How to engage remote employees with financial wellness programs
Employers can support remote teams with practical financial wellness measures that don’t require in-person contact. Effective options include:
- Organizing online workshops and webinars on budgeting, debt management, tax planning, and stress reduction related to money. For example, a Betterment for Business report from March 2020 found that 77% of millennials and Gen Z savers experience stress about finances, which undermines performance and productivity.
- Offering employee discount programs negotiated with healthcare providers, grocery stores, restaurants, and essential-service vendors to reduce everyday expenses and provide relief in crisis situations.
- Maintaining merit-based rewards and recognition programs to motivate employees and reinforce positive performance during challenging times.
- Providing short-term emergency lending options or advances to help employees manage urgent expenses without resorting to high-cost credit.
In addition to these approaches, employers can partner with specialized third-party providers that offer comprehensive financial wellness solutions. Outsourcing parts of a financial wellness program can be an efficient way to deliver personalized support, from budgeting tools to emergency loans, without overstretching internal HR resources.
Fibe is an example of a provider that offers a range of financial tools employers can make available to their teams, including instant personal loans, education fee financing, and medical emergency loans. These services can help employees address immediate cash needs while working remotely, reducing financial stress and enabling them to stay focused on work.
If you want to explore financial wellness options for your organization or have questions about credit and lending solutions for employees, reach out to a provider you trust and discuss how to tailor a program to your workforce’s needs.
Download the instant loan app or log in to your provider’s portal to explore available solutions and consider how small, practical steps can make a big difference in your employees’ financial wellbeing and overall productivity.