When people talk about financial wellness, they often focus on retirement planning, budgeting apps, or investment strategies. But the most immediate and often most overlooked issue is far simpler: having enough savings to handle life’s everyday ups and downs. For many employees, a lack of savings isn’t just a financial inconvenience – it’s a major source of emotional stress that impacts every part of their lives, including their performance at work. In today’s economic environment, helping employees build even a small financial cushion can go a long way in supporting both mental health and organizational well-being.
Let’s look at what the data says, and how employers can help their people build a firm financial footing.
The Mental Toll of an Empty Bank Account
Not having any savings doesn’t just create financial stress – it takes a real toll on a person’s comprehensive mental health. It can fuel a constant cycle of anxiety, worry, and emotional strain that’s hard to break. In fact, 73% of Americans say money is their top source of stress – ranking higher than work, health, or relationships.
And that stress only intensifies when there’s nothing in the bank to fall back on. Nearly three-quarters of people without emergency savings report high levels of financial stress, compared to just 26% of those who have even a modest $1,000 set aside. Living paycheck to paycheck isn’t just financially risky; it’s mentally exhausting. It often shows up as anxiety, poor sleep, and a general feeling of being overwhelmed. The weight of constant uncertainty makes it difficult to feel in control or plan ahead in any meaningful way.
The good news is that even a small amount of savings can help ease that burden. Households with just $250 to $749 in reserve are significantly less likely to face disruptive events like missed rent or shutoff notices – both of which are closely tied to emotional distress. The connection between financial and mental well-being is strong: people who feel financially stable are five times more likely to say they’re thriving in life overall. When there’s no financial buffer, even small decisions become mentally draining, and thinking ahead feels overwhelming. That’s why savings aren’t just about money – they’re a key part of feeling secure, in control, and mentally well.
Impact Within the Workplace
Financial stress doesn’t clock out when employees clock in – it follows them to work and shows up in ways that are both easy to see and hard to ignore. When someone is worried about money, it’s much harder to stay focused and engaged. They’re more likely to feel overwhelmed, distracted, and checked out during the workday. In fact, employees dealing with money stress are ten times more likely to be distracted on the job and twice as likely to be actively looking for a new one. They may struggle to concentrate, feel less motivated, miss deadlines, or shy away from collaborating with their team. It can also lead to more absenteeism – or presenteeism, where employees show up but aren’t operating at their best.
Over time, that stress adds up, leading to burnout, tension among coworkers, and higher turnover. The overall impact? Lower productivity, reduced morale, and ripple effects that can touch every part of the organization. For HR and benefits leaders, this isn’t just a wellness issue – it’s a business one. Helping employees build savings and reduce financial stress is a smart, proactive step toward a healthier, more focused, and more resilient workforce.
Simple, High-Impact Ways to Help Employees Build Savings
The good news for HR and benefits leaders is that supporting employee savings doesn’t have to mean overhauling your entire benefits strategy. There are plenty of simple, low-lift ways to help employees build a financial cushion – many of which can be layered into programs and communication channels you already have in place. From practical tools to everyday savings opportunities, here are a few actionable ideas that can make a real difference in your employees’ financial well-being.
1. Incorporate Savings into Open Enrollment.
Use open enrollment season as an opportunity to highlight how benefits can reduce out-of-pocket costs. For example, explain how choosing an HSA or FSA can lead to tax savings, or how telehealth options reduce the need for costly ER visits. Position savings as a value proposition across the entire benefits suite – not just retirement or healthcare.
2. Offer an Employee Discount Program
An employee discount program provides immediate, everyday savings on things employees are already spending money on – like groceries, travel, home essentials, and entertainment. It’s a low-effort, high-impact benefit that helps stretch paychecks further without requiring behavior change. When positioned well, it can also encourage a “savings-first” mindset, where employees start proactively looking for ways to cut costs across categories.
3. Provide Financial Education with Actionable Takeaways
Host workshops, webinars, or even short-form content focused on real-life saving strategies like budgeting, meal planning, or negotiating bills. But go beyond awareness: give employees specific actions they can take and tie them back to benefits you already offer (like how to use your discount program to save on groceries or back-to-school shopping).
4. Promote Automatic Savings Tools
Many employees want to save more but struggle to build the habit. Offering access to tools that allow for automatic transfers from paycheck to savings, whether through direct deposit splits or workplace emergency savings accounts, makes it easier to build a cushion without thinking about it. Pairing this with nudges or opt-in campaigns can drive adoption.
5. Leverage Partnerships with Financial Wellness Platforms
Partnering with financial wellness vendors can give employees access to savings calculators, goal-setting tools, emergency fund support, and one-on-one financial coaching. These services often integrate with broader HRIS or benefits platforms and can be delivered at low or no cost, especially if bundled with existing wellness offerings.
6. Make Mental Health Benefits Part of the Savings Conversation
Help employees manage the stress of financial uncertainty by connecting them to EAPs, mental health apps, or therapy resources. When employees are in a better mental space, they’re more likely to engage in proactive financial behaviors – like saving regularly and planning ahead.
7. Create “Savings Moments” Throughout the Year
Use seasonal events like back-to-school, the holidays, or tax refund season as touchpoints to promote saving. For example, run a campaign around using the discount program to save during holiday shopping, or encourage employees to set aside a portion of their tax refund. These small, timely nudges can reinforce good habits without overwhelming.
Conclusion
When employees don’t have a financial cushion, the effects ripple far beyond their bank accounts. The stress that comes from living without savings impacts their mental health, their focus, and their ability to show up fully at work. But the flip side is also true—when companies take steps to support everyday savings, even in small ways, the impact can be powerful.
HR and benefits leaders are in a unique position to make this support accessible, whether it’s through discount programs, smarter communication during open enrollment, or simple savings tools built into existing systems. Helping employees build a financial buffer isn’t just a nice gesture—it’s a meaningful investment in a healthier, more resilient workforce.