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Why Financial Stability Matters More Than Ever for Employees | MSA

Written by MSA Staff | May 19, 2026 2:00:00 PM

Key Takeaways

  • Financial stress remains a significant challenge for employees across income levels.
  • Raises may provide temporary relief but often do not address the root causes of financial stress.
  • Financial stability is influenced by behaviors, habits, and access to support.
  • Employers can support Financial Well-being through education, coaching, and workplace resources.
  • Employees who feel more financially confident may be better positioned to focus on work and engage with benefits.

 

The Reality: Financial Stress Is Still Widespread

Financial stress isn't a fringe issue. It's the norm.

  • In Fidelity's 2025 Workplace Outlook, 77% of employees said inflation and the cost of living are causing them financial stress, and 3 in 10 said they are stressed about meeting immediate financial needs.¹
  • PNC's 2025 Financial Wellness in the Workplace Report found that 67% of U.S. workers surveyed are living paycheck to paycheck, up from 63% in 2024. The same report found that U.S. workers spend an average of nearly 4 hours per week worrying about personal finances at work.²
  • A large share of U.S. households remain financially unhealthy or financially vulnerable, according to national financial health research.³

This isn't just a personal issue. It's a workplace issue.

Financial stress can contribute to distraction, absenteeism, and reduced productivity, all of which affect employee engagement and retention.

How Financial Stress Impacts Employee Productivity, Retention, and Workplace Performance

 

Financial Stability Is a Financial Well-being Issue

Financial stability is about more than income.

Employees may earn competitive salaries and still struggle with financial stress due to debt, spending habits, emergency savings gaps, or uncertainty about major financial decisions.

That is why many employers are expanding their focus beyond compensation and looking at Financial Well-being as part of a broader workforce support strategy.

 

Why Raises Aren't Solving the Problem

A raise can ease pressure temporarily. But it doesn't address the underlying behaviors, habits, and decision-making challenges that drive financial stress.

Without the right support, employees often find themselves facing the same financial pressures just months later.

Compensation matters. However, financial stress is often influenced by spending habits, debt obligations, emergency savings levels, and financial decision-making behaviors.

That's why leading employers are shifting their approach. Instead of focusing only on compensation, they're investing in Financial Well-being as a long-term solution.

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"[My Money Coach] has helped me to be much more disciplined & mindful of how and when I spend my $."

 

— MSA Member

 

What Employees Actually Need

Employees don't just need more money. They need a way to manage it effectively.

A Financial Well-being program helps employees:

  • Understand their full financial picture
  • Build sustainable financial habits
  • Navigate challenges like debt, budgeting, and major life events
  • Reduce stress and feel more in control of their future

Financial stability isn't about income level. It's about behavior, support, and access to the right resources.

"This should be a part of mandatory training. Because if most of our stress is from finances, then our work habits may be affected, but if we have a better grasp on our finances, our production increases. Thank you for the training."

 

— MSA Member

 

Looking for ways to support employee Financial Well-being?

Learn how educational guidance and personalized Money Coaching can help employees build confidence and navigate financial decisions.

Learn More About MSA

 

How MSA Helps Employees Build Financial Stability

MSA's Financial Well-being program combines education, one-on-one coaching, and ongoing support to empower employees to take control of their financial lives.

Employees gain:

  • Personalized support from expert Money Coaches
  • Practical strategies they can apply immediately
  • Ongoing support for financial decisions and life's transitions

MSA's internal outcome data shows measurable progress for members who work with a Money Coach. On average, members increase emergency savings by $4,922, increase monthly discretionary income by $715, reduce debt by $6,661, and improve productivity by 1.8 hours per week.⁴

 

Potential Benefits of Supporting Employee Financial Stability

Employers increasingly recognize that financial stress is not just an employee issue. It's a business issue.

Organizations that support employee Financial Well-being initiatives may experience benefits such as the following:

  • Improved productivity and focus
  • Reduced absenteeism
  • Higher engagement and retention
  • Increased awareness of available resources
  • Greater confidence among employees

Financial Well-being is no longer a "nice-to-have" benefit. It's becoming an important part of a competitive and supportive workplace culture.

 

Building Financial Stability Through Everyday Financial Habits

Long-term financial stability is often built through small, consistent actions.

Employees may benefit from support related to:

  • Spending habits
  • Debt management
  • Emergency savings
  • Financial literacy
  • Retirement planning

Helping employees address these areas can create a stronger foundation for long-term Financial Well-being.

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Frequently Asked Questions

What is employee financial stability?

Employee financial stability refers to an individual's ability to manage expenses, handle unexpected costs, make informed financial decisions, and work toward long-term financial goals with confidence.

How does financial stress affect the workplace?

Financial stress may contribute to distraction, absenteeism, reduced productivity, and lower engagement, all of which can affect workplace performance.

Why aren't pay raises enough to reduce financial stress?

While raises can provide temporary relief, they may not address underlying challenges such as debt, spending habits, emergency savings gaps, or financial decision-making behaviors.

How can employers support employee Financial Well-being?

Employers can support Financial Well-being through education, coaching, workplace resources, and ongoing communication that encourages informed financial decisions.

What role does financial coaching play?

Financial coaching can help employees understand their options, develop action plans, and build confidence in managing financial challenges and opportunities.

 

Next Steps for Employers, EAPs, and PEOs

  • Evaluate how financial stress may be affecting your workforce.
  • Review existing Financial Well-being resources and benefits.
  • Consider opportunities to provide education and coaching support.
  • Connect financial stability initiatives to broader employee support programs.
  • Reinforce Financial Well-being throughout the year, not just during benefits enrollment periods.

 

A Better Way Forward

Providing raises alone won't solve financial stress. Providing the right support can.

MSA helps employees build the habits, knowledge, and confidence they need to achieve lasting financial stability and peace of mind.

Learn how MSA supports employee Financial Well-being through education, Money Coaching, and ongoing support.

 

¹ 2025 Workplace Outlook: Perspectives for Talent and Benefits Leaders. Fidelity Workplace, 2025, fidelityworkplace.com/s/page-resource?cId=benefits_leaders_trends_report.

² 2025 Financial Wellness in the Workplace Report: What Today's Workers Value Most, Across Generations. PNC, 2025.

³ Financial Health Pulse: 2024 U.S. Trends Report. Financial Health Network, 2024.

⁴ My Secure Advantage, Inc., January 2025. Based on self-reported data from MSA members working with a coach on this specific issue, from 1/1/23 - 12/31/24.