Designing for impact: A behavioral blueprint for employee financial well-being

Despite widespread adoption of financial wellness programs and benefits, employee engagement remains stubbornly low. The call to action is urgent. Financial well-being is a priority across the life course for employees, who report a need for increased emergency savings and the ability to pay off expenses in full, as well as a desire to save more for the future.¹

 

Employers are uniquely positioned to influence positive financial behaviors through strategic financial wellness programs. To address these challenges, however, employers must adopt evidence-based strategies. These strategies include leveraging behavioral science, simplifying program design, and meeting employees where they are to drive meaningful engagement and improve outcomes. 

 

Barriers to engagement for employees are multifaceted. Employees face complex enrollment processes and struggle with present bias — the tendency to overvalue immediate rewards and prioritize short-term benefits over larger long-term gains — and avoidance behaviors. These barriers make it challenging to focus on future-oriented financial planning. Employees often lack the foundational knowledge needed to make informed decisions.

 

Generational differences further complicate engagement, as financial priorities and preferred communication channels vary widely across age groups. Many employees turn to informal sources — such as friends, family and social media — for financial advice.

 

Effective financial wellness strategies require tailored, ongoing communication that addresses the needs of employees wherever they are in their financial journey. Research shows that targeted messaging, simplified processes and regular touchpoints can significantly boost participation and savings rates. Programs that acknowledge diverse motivators, leverage relatable language and provide accessible education are most successful in closing the gap between intention and action.

 

Looking ahead, the definition of financial well-being is evolving. Employees increasingly seek flexibility and empowerment, adopting new approaches such as “soft saving” and “side hustles” to adapt to economic realities.

 

Employers must continue to adjust their financial wellness offerings to address these changing attitudes, fostering a culture of openness, empowerment and sustained support. By doing so, they can help employees transform financial intention into meaningful action, enhancing both individual and organizational well-being.

 

This paper examines the following:

 

• State of financial wellness programs
• Why outcomes are falling short
• Actionable recommendations for improvement
• The future of financial wellness

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Read our paper to get expert insights, practical recommendations, and a look ahead at the future of financial wellness in the workplace.