Key Takeaways
- Financial stress affects employee productivity, engagement, retention, and workplace performance.
- Employees experiencing financial stress often spend work hours managing financial concerns and worrying about money.
- Financial stress can contribute to absenteeism, distraction, and turnover.
- Personalized financial coaching can help employees improve financial confidence and reduce stress.
- Employers can address financial stress through initiatives that provide education, financial coaching, and ongoing support.
Financial Stress Is a Workplace Issue
While financial stress is often viewed as a personal issue, employers increasingly recognize its impact on workplace outcomes. Employees who are worried about paying bills, managing debt, or handling unexpected expenses often bring those concerns with them to the office.
Financial challenges can influence how employees think, feel, and perform throughout the workday.
They follow them into meetings and affect focus.
The result can be reduced engagement, lower productivity, increased absenteeism and turnover risk, and greater strain on overall employee well-being.
Understanding and addressing financial stress has become an important component of workforce strategy for many employers.
The Cost of Financial Stress
Financial stress remains one of the most significant workplace challenges facing employers today.
Recent research shows that financially stressed employees lose an average of 8.1 hours of productivity per week due to financial concerns.¹
Additionally, 30% of employees report feeling stressed about meeting their immediate financial needs, and more than half of financially stressed employees say their stress negatively impacts their work performance.²
Imagine the impact on your organization if employees spent less time worrying about money and more time focused on their work.
Why Financial Stability Matters More Than Ever for Employees
How Financial Stress Impacts the Workplace
Financial stress affects far more than an employee's bank account.
MSA's own research found that 76% of employees experience some level of workplace distraction related to financial stress.³
Among employees surveyed by MSA, 28% have considered leaving their current employer due to financial stress or inadequate financial benefits.⁴
Financially stressed employees frequently report difficulty concentrating, increased anxiety, and reduced engagement, all of which can negatively affect workplace performance and retention.
When employees are distracted by financial concerns, organizations often experience:
- Lower productivity
- Increased absenteeism
- Higher turnover
- Reduced engagement
- Greater healthcare and well-being challenges
Financial stress often develops when employees lack confidence in managing everyday financial decisions.
Learn more about Why Financial Literacy Matters in the Workplace.
Common Causes of Employee Financial Stress
Financial stress can affect employees at every income level.
Some of the most common contributors include:
- Rising living expenses
- Credit card and consumer debt
- Limited emergency savings
- Healthcare costs
- Caregiving responsibilities
- Retirement uncertainty
- Major life transitions
Many employees face several of these challenges simultaneously.
For example, an employee may be balancing caregiving responsibilities while managing debt and trying to save for retirement.
These overlapping pressures can increase stress levels and make it more difficult to maintain financial confidence.
How Family Caregiving Affects Employee Financial Well-being and Workplace Performance.
The Impact of Financial Well-being Support
The good news is that financial stress can be addressed.
Today's workforce increasingly values access to educational guidance and personalized assistance that can help them navigate real-life financial challenges. Organizations that invest in employee Financial Well-being often report improvements in engagement, retention, and productivity.
MSA outcomes data demonstrates the measurable impact financial coaching and educational support can have on employees experiencing financial stress.
Among MSA members with high financial stress who worked with a Money Coach:
- 91% average improvement in financial well-being⁵
- 122% reduction in worrying about meeting monthly living expenses⁵
- 63% improvement in how often finances negatively affect health⁵
- 1.8 additional productive work hours per week, on average⁵
- 159% improvement in confidence to handle a $1,000 emergency expense⁵
For members working with a coach on specific financial goals:
- Average reduction in debt: $6,661⁶
- Average increase in emergency savings: $4,922⁶
- Average increase in monthly discretionary income: $715⁶
- Average credit score improvement: 48 points⁶
These outcomes illustrate what can happen when employees receive personalized educational guidance that helps them build healthier financial habits and greater confidence in their financial future.
Want to see how leading employers are helping employees reduce financial stress?
Learn how personalized Money Coaching can help employees build confidence, improve financial habits, and address the challenges causing them the most stress.
Learn More About MSA
Why Personalized Financial Support Matters
Financial Well-being is not determined by income alone.
Employees at every income level in each stage of life face financial decisions, unexpected expenses, competing priorities, and life transitions that can create stress and uncertainty.
MSA's Financial Well-being program combines:
- One-on-one Money Coaching
- Financial education
- Digital learning resources
- Ongoing support across virtually any financial topic
This personalized approach helps employees build sustainable behaviors that improve both Financial Well-being and overall well-being.
"This has helped me more than I thought possible. [My Money Coach] has really helped me feel better and not as overwhelmed as I was. I don't feel rushed and appreciate her going at my pace. My finances have caused my mental and physical health to decline, and I truly feel more positive and optimistic after speaking with [her]."
– MSA Member
Financial Stress and Employee Retention
Financial stress does not only affect productivity. It can also influence how employees feel about their employer and their long-term career plans.
Employees experiencing ongoing financial strain may seek higher-paying opportunities or employers that offer stronger financial education, coaching, and employee benefits.
Retention challenges can become particularly pronounced when employees feel they have limited options for improving their financial situation.
Organizations that help employees address financial challenges may be better positioned to improve employee experience, strengthen retention efforts, and create a more engaged workforce.
Financial Stress Affects More Than Finances
Financial stress can influence:
- Physical health
- Mental health
- Workplace engagement
- Relationships
- Long-term financial goals
Helping employees address financial stress is not simply about improving financial outcomes. It may also support overall well-being and quality of life.
Explore additional research: Unlocking Well-being: The Impact of Financial Literacy on Health
Frequently Asked Questions
What is employee financial stress?
Employee financial stress occurs when financial concerns such as debt, living expenses, savings challenges, or unexpected costs create ongoing worry that affects daily life and work performance.
How does financial stress affect productivity?
Research shows that financially stressed employees often spend work time managing financial concerns, experience greater distraction, and may struggle to maintain focus and engagement.
How much productivity is lost due to financial stress?
According to Aon's 2025 Employee Sentiment Study, financially stressed employees lose an average of 8.1 hours of productivity per week due to financial concerns.¹
Can financial coaching reduce financial stress?
Financial coaching can help employees improve financial confidence, develop healthier financial habits, address financial challenges, and reduce stress related to money management.
How can employers help employees reduce financial stress?
Employers can provide Financial Well-being programs, educational guidance, personalized coaching, and resources that help employees navigate financial challenges and build long-term confidence.
Next Steps for Employers, EAPs, and PEOs
- Evaluate how financial stress may be affecting your workforce.
- Assess awareness and utilization of existing Financial Well-being resources.
- Identify opportunities to improve employee financial confidence through education and financial coaching.
- Measure the impact of financial stress on productivity, retention, and engagement.
- Consider how Financial Well-being initiatives can complement broader workforce strategies.
Helping Employees Worry Less About Money
Financial stress continues to affect productivity, engagement, retention, and overall employee well-being.
Employers that proactively support Financial Well-being can help employees reduce stress, improve financial confidence, and stay focused on what matters most.
Learn how MSA helps employers, EAPs, and PEOs support employees through personalized Money Coaching, educational guidance, and other Financial Well-being initiatives.
¹ Aon. 2025 Employee Sentiment Study. Aon, 2025.
² Fidelity Workplace. 2025 Workplace Outlook: Perspectives for Talent and Benefits Leaders. Fidelity Investments, 2025.
³ My Secure Advantage, Inc. January 2024. Based on MSA member self-reported live event data. 2,152 responses.
⁴ My Secure Advantage, Inc. September 2024. Based on self-reported data from 1,000 MSA members from 08/30/2024-09/13/2024.
⁵ My Secure Advantage, Inc. January 2025. Based on self-reported data from MSA members with high financial stress from 1/1/23-12/31/24.
⁶ My Secure Advantage, Inc. January 2025. Based on self-reported data from MSA members working with a coach on the specific issue measured from 1/1/23-12/31/24.
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