By JC Abusaid, CEO/President, in Forbes
A firm’s approach to financial literacy reflects its values and genuine care for employees. When support is primarily focused on compensation and basic benefits, there are still plenty of opportunities for employers to further strengthen their commitment to their employees.
In fact, 93% of HR executives and 85% of employees said their companies need to do a better job helping workers understand and maximize their financial benefits, according to a Morgan Stanley survey.
Today, employees expect more, and I think they should. Many want to know their employer cares about their well-being, not just their performance. That means helping employees navigate real-life financial pressures instead of assuming those issues will stay outside the office. (Hint: They don’t.)
It’s also important to remember that something that might seem like common knowledge to you might not be to your employees. For many workers, financial literacy means understanding everyday topics like how a 401(k) works, how to choose insurance coverage or how to plan for major life goals.
Key Takeaways
- Financial stress affects workplace performance. Employees facing financial challenges may experience lower productivity, increased distraction, and greater difficulty focusing on work responsibilities.
- Financial literacy can improve engagement and retention. Education around retirement planning, debt management, homeownership, and benefits can help employees feel more supported and confident.
- Leadership plays a critical role in financial wellness. CEOs who prioritize financial education and employee well-being help shape stronger workplace cultures and more engaged teams.
How Financial Stress Impacts Performance
Financial stress does not disappear when someone starts the workday. In fact, 59% of respondents to PwC’s 2026 Employee Financial Wellness Survey said they’re experiencing financial stress today.
If an employee is worried about buying a home, affording rent, paying childcare or managing debt, it can affect focus and productivity. That same PwC survey found that employees who are stressed financially are five times more likely to be distracted at work, and half of them spend at least three hours of work time each week dealing with financial issues.
I have seen firsthand how major financial stress can distract someone and impact the energy they bring into the workplace. Earlier in my career, I prioritized compensation and career advancement. While important, I have learned that this is just a piece of prioritizing your employees.
We once lost a valuable employee who wanted to own a home and felt they could not make that happen while living in Southern California. They decided to move away to achieve that goal. Looking back, I should have spent more time understanding what they were trying to achieve personally, what pressures they were carrying and how I could help them achieve their goals.
This is why understanding employee goals, beyond job performance, can lead to stronger engagement and improved retention. In a Morgan Stanley survey, 91% of workers said they’d consider switching jobs if it “provided financial benefits that helped them reach their goals,” showing that support in this area can strengthen loyalty. It’s no surprise that the Employee Benefit Research Institute found “the top factor in measuring financial wellness initiatives’ success was improved overall worker satisfaction, followed by increased employee productivity.”
Support That Actually Works
The most meaningful support is often simpler than people think.
At my registered investment advisor firm, we host employee discussions on topics like retirement planning, insurance and estate planning. Topics like understanding company 401(k) matches, budgeting basics, debt management and preparing for homeownership can be just as valuable, depending on the workforce. We also encourage mentorship among financial advisors and support staff because employees often feel more comfortable asking honest questions in those settings.
Many employees remain silent to avoid appearing uninformed, which is why education must be ongoing and approachable. That is especially important when you consider that PwC’s survey also found 41% of employees said their education or personal background did not adequately prepare them to manage finances. Additionally, 52% said they do not feel capable of planning long-term financial goals.
Support also includes benefits that can help reduce daily stress. Childcare assistance, flexible schedules and accessible and affordable therapy services can significantly help employees balance work and personal responsibilities. Financial wellness extends beyond investments or retirement accounts. It involves helping employees achieve greater stability and confidence.
How Leadership Sets The Tone
When CEOs focus solely on financial metrics, the organization follows suit. Prioritizing employee well-being also shapes company culture.
CEOs must remain attentive to employee financial stress and be willing to adapt. Without leadership evolution, company culture will not progress. Leaders can set the tone by making financial wellness a visible priority, whether through educational workshops, bringing in professionals or creating time for employees to ask questions and seek guidance. Sometimes the most effective leadership move is helping employees know where to start.
That also means being open-minded enough to admit you do not have all the answers. Some of the best decisions come from listening to others, collaborating and creating an environment where employees feel comfortable speaking honestly.
Just as important, employees should know leadership is approachable. One-on-one conversations can create the biggest impact. I have sat with employees who wanted to buy a home and talked through practical ideas, different paths to ownership and ways to think through the process. Those conversations matter because they show people someone cares enough to help.
Employee well-being should be treated as a business priority, not an afterthought, especially as research links higher well-being to stronger productivity and lower burnout.
Starting Small, Staying Consistent
My advice to CEOs is to start small and set realistic expectations.
You do not need a massive program on day one. Begin with regular check-ins. Ask employees what they are trying to accomplish and where they feel pressure. Listen more than you talk.
Consider offering an employer-sponsored retirement plan with company matching (if possible), and implement automatic enrollment to simplify participation. Leverage external resources, such as 401(k) providers and educational partners, to clearly explain the benefits. Even a short session explaining enrollment options, company matches or insurance choices can go a long way.
The key is to keep building over time. Revisit what is working, make adjustments where needed and continue improving each year. No company gets this perfect, and we certainly continue learning ourselves. But I have seen enough to know that when employees feel supported financially, they tend to become more engaged, more loyal and more confident.
Caring for employees does not weaken a business—it builds a stronger one.
