Boosting Employee Retention Through Financial Wellness Programs

In today’s competitive labor market, closely held business owners face a unique challenge in retaining skilled employees without the deep pockets of large corporations. While salary and traditional benefits remain important, a growing body of research shows that financial wellness programs are a powerful—and often underutilized—tool for boosting employee retention, engagement, and productivity.

Why Financial Wellness Matters

Financial stress is a silent productivity killer. It follows employees into the workplace, affecting focus, morale, and decision-making. Consider these eye-opening statistics compiled by recent PwC and PNC Financial Wellness Surveys¹:

• 57% of employees say finances are the top cause of stress in their lives.
• 86% admit to worrying about money while on the job.
• Financial stress affects sleep (56%), mental health (55%), self-esteem (50%), physical health (44%), and home relationships (40%).

For closely held businesses, this stress translates into real costs: absenteeism, presenteeism, disengagement, and turnover. According to John Hancock, the cost of financial stress adds up to more than $1,900 per employee per year².

The Business Case for Financial Wellness Programs

Financial wellness programs are no longer a “nice-to-have”—they’re a strategic imperative. Here’s why:

• 81% of employees say financial wellness benefits make them want to stay with their current employer.
• 96% of employers say these programs improve retention.
• 81% of employers report that offering financial wellness tools helps attract higher-quality talent³.

For business owners, especially those running closely held firms, investing in financial wellness is a cost-effective way to protect institutional knowledge, reduce turnover costs, and build a loyal workforce.

Core Tenets of an Effective Financial Wellness Program

A robust financial wellness program goes beyond basic budgeting tips. It should be holistic, personalized, and integrated into your company culture. Key components include:

• Financial Education: Workshops, webinars, and digital tools covering budgeting, debt management, retirement planning, and more.
• Personalized Counseling: One-on-one sessions with financial professionals to address individual concerns and goals.
• Student Loan Assistance: Employer-matching contributions to loan repayments help employees pay off debt faster and improve retention.
• Automation: Features like auto-enrollment and auto-escalation make saving effortless and reduce inertia.
• Family-Focused Support: Benefits like dependent care savings, tuition assistance, and caregiver support extend financial stability to employees’ families.

How to Get Started

For closely held business owners, implementing a financial wellness program doesn’t require a massive budget. Many programs offer tiered pricing, and some components—like financial education workshops or access to budgeting apps—can be low-cost or free.

Start by:

1. Assessing Employee Needs: Use surveys or HR insights to understand financial pain points.
2. Promoting Awareness: Integrate financial wellness into onboarding, benefits enrollment, and company communications.
3. Partnering with Experts: Work with financial advisors or third-party providers to deliver high-quality resources.
4. Tracking Impact: Monitor participation, engagement, and retention metrics to refine your strategy.

Partner with Concentric Wealth Partners to Elevate Your 401(k) Offering

When businesses choose Concentric Wealth Partners to manage their 401(k) plans, they gain more than investment support—they gain a partner committed to financial education. This focus on employee financial literacy is a key differentiator that sets us apart from other providers.

Financial wellness programs reflect your company’s values and help build a loyal, resilient workforce. By supporting employees’ financial health, closely held business owners can strengthen their teams and position their businesses for long-term growth.

Make financial wellness a central part of your employee value proposition. Schedule a conversation with Concentric Wealth Partners to see how we can help your 401(k) plan become a strategic investment in your people and your future.