When Money Worries Follow Employees to Work, Wellness Becomes a Business Strategy

The cost-of-living crisis is altering employee priorities, as financial stress ranks as a primary concern affecting workplace performance and retention. HR must respond with comprehensive wellness initiatives and support – but how best to go about it?

The answer lies in a more intentional, holistic approach. HR can evolve their wellness programs to address physical health, mental well‑being, financial security, and career confidence in tandem. In doing so, they support employees more fully while increasing productivity, boosting retention, and driving the business outcomes that move the organization forward. 

A workforce with divergent pressures

Today’s workforce spans more generations and life stages than ever before, and employees experience financial strain in profoundly different ways. A recent graduate may be juggling rent spikes and student loan repayments. A mid‑career employee may be balancing childcare, eldercare, and the cost of homeownership. Late‑career professionals, meanwhile, may be navigating Medicare decisions or recalibrating retirement timelines.

A single wellness program can’t meet all these needs – but a targeted one can. Leading HR teams are segmenting their support, offering education and resources that reflect where employees actually are in their lives. Budgeting workshops, debt‑management sessions, caregiving resources, and retirement‑readiness programs all serve different segments of the workforce – and together, they create stability that directly influences productivity.

HR doesn’t have to build this infrastructure alone. Retirement plan providers and 401(k) administrators increasingly offer personalized assessments, digital planning tools, and one‑on‑one consultations. When HR integrates these services into broader wellness strategies, employees gain both knowledge and actionable next steps – a combination that reduces stress and improves performance.

Unlocking the value hidden in existing benefits

Many organizations already offer benefits that could meaningfully reduce financial strain – but employees often don’t know they exist, or they’re inconsistently available across regions.

Employee Assistance Programs (EAPs) are a prime example. They frequently include free mental health counseling, legal guidance, childcare and eldercare referrals, and financial consultations.

These services can dramatically reduce stress, yet utilization rates remain low. HR leaders should audit their offerings, ensure equitable access across locations, and communicate them clearly and repeatedly.

Addressing compensation with clarity and confidence

Financial stress amplifies concerns about fairness. When employees feel uncertain about how compensation is determined, productivity and morale suffer.

HR teams should regularly evaluate whether salary increases, bonuses, and equity awards align with market conditions and organizational values. Transparent communication about how compensation decisions are made can prevent misunderstandings and reinforce trust  – a critical factor in whether employees stay or start looking elsewhere.

That clarity becomes even more important when conversations turn to pay gaps. Misconceptions can arise from the belief that any difference in pay is inherently inequitable. In reality, compensation reflects experience, performance, and role complexity. But without clear communication, employees may assume inequity where none exists.

HR leaders should equip managers with the tools to explain compensation frameworks clearly and consistently. At the same time, genuine pay gaps – where employees with comparable experience and performance are compensated differently – must be addressed decisively. Equal work deserves equal rewards. Organizations that fail to uphold this principal risk losing talent to employers who will.

Flexibility as a financial and productivity strategy

Flexibility may not appear to be a financial benefit at first glance, but its impact is profound. The ability to work from home a few days a week can reduce commuting costs, ease childcare logistics, and give employees more control over their time – all of which reduce stress and improve focus.

Rigid return‑to‑office mandates, by contrast, often increase expenses and erode trust. A balanced approach – hybrid schedules, flexible hours, and autonomy over where work gets done – supports both well‑being and performance.

The physical office also matters. Open‑plan layouts may be cost‑efficient, but they’re not always conducive to deep work. Offering a mix of quiet rooms, collaboration spaces, and private areas for calls or heads‑down tasks helps employees choose the environment that best supports their productivity.

Flexibility, in other words, is not a perk. It’s a strategic tool for reducing friction in employees’ lives and improving output.

Wellness as a performance advantage

Financial stress is no longer a peripheral concern – it’s a central force shaping how employees show up at work. HR leaders who broaden their wellness strategies to include financial stability, tailored support, equitable compensation, and flexible work models will build organizations that are more resilient, more engaged, and more competitive.

The goal isn’t simply to reduce stress. It’s to create a workforce that feels supported, valued, and equipped to perform at its best. When wellness is designed with intention and aligned with business outcomes, it becomes much more than a benefit – it becomes a competitive advantage that positions the organization for success that endures.

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Amy Nordness is Chief People Officer at iManage. Amy is passionate about all things people. She oversees our global employee population and people programs, cultivating an irresistible employee experience that brings to life the promise of our core values, which empowers our diverse and vibrant team members to thrive.