Employee financial stress is reaching a breaking point—with 80% of U.S. employees reporting moderate to very high levels of daily financial stress—and it’s costing businesses, according to research from ZayZoon. Nearly half (48%) of employees have no emergency savings, two in three have less than $100 at the end of each month, and 80% are actively looking for higher-paying jobs.
Employees are increasingly stressed about paying bills (39%), affording rent (16%), and buying groceries (15). Most employees are focused on survival, the report finds. For employers, this means burnout, disengagement, absenteeism, and turnover abound. Nearly three-quarters (73%) of HR leaders say financial stress hurts job performance, 93% say it has a direct cost to their business, and for 38%, that cost exceeds $25,000 annually.
Employers can make a difference and reap measurable returns through these key solutions: earned wage access, financial education, and employee recognition.
In addition to being concerned about affording short-term expenses, the report finds that 12% of employees carry between $10,000 and $25,000 in student loan debt, 25% carry credit card debt of $2,000 or higher, 36% carry payday loan debt, and 36% of employees spend over $100 each month on interest and late fees. This has a measurable impact on team performance and their employers’ bottom line, according to the HR leaders surveyed.
Nearly half (41%) of HR professionals say that financial stress has a strong negative impact on overall workplace morale and 45% say stress strongly impacts employees’ mental health.
Financial wellness benefits drive employee engagement, the report finds. Over half (59%) of HR professionals in America now offer earned wage access, up from 54% in 2024. This can support employee well-being, improve retention, and boost productivity.
Over 60% of employees report not keeping a personal budget due to lack of tools and knowledge. As 82% of employees say employers should support their financial wellness and education, this can be an effective tool for supporting measurable improvement.
Finally, 65% report that they wish they were recognized more often at work, eith 34% saying they feel like they are almost never recognized for their contributions at work. This gap in workplace experience presents an opportunity for employers to boost engagement and well-being. Implementing a rewards and recognition program can tangibly improve satisfaction and productivity.
When asked what kind of recognition employees would like to receive, 55% chose monetary rewards or bonuses, showing that financial incentives are a powerful motivator. Many also chose non-monetary forms of recognition, like verbal or written praise, one-on-one recognition with management, or recognition from peers.
Where the budget allows, pairing that with financial rewards like gift cards is effective, with 68% saying that receiving meaningful recognition improves their workplace experience, and 72% saying that it motivates them to exceed expectations at work.
More than 91% of employees say benefits are important or very important in their decision to accept a job. And over one in five would take a pay cut for better benefits. Financial wellness benefits are no longer option for engagement. By prioritizing high-impact, needs-based benefits, keeping it simple, making the organization’s values visible through benefits, choosing benefits that are easy to adopt and measure, and evolving with employees, companies can help support employee financial well-being and boost their bottom line.
