3 min read
Helping your people understand their benefits is more critical than ever
With rising costs, economic instability, and the constant pressure to make ends meet, financial stress is weighing heavily on your people. The 2025 Global Financial Wellbeing Report paints a stark picture: in just one year, the number of people feeling hopeful about their financial future has plunged from 60% to 29%. Over half (56%) are worried about inflation, with rising energy and food costs adding extra strain an in North America 63% are feeling anxious about inflation.
This financial stress has real consequences and is linked to fatigue, sleep disruptions, and even depression. And in the workplace, it can lead to lower morale , decreased productivity, and higher turnover. This climate also means that employers are under pressure to optimize spend and demonstrate ROI on benefits packages.
Employees need knowledge and support to navigate mounting financial challenges. Yet, many aren’t making the most of the benefits that can do just that, often because they don’t understand them. This gap between what’s offered and what’s used is a critical opportunity for employers to reduce financial stress while also boosting engagement and ROI on their benefits offerings.
Financial education increases benefits understanding
Despite a wide range of benefits available, many employees don’t engage – particularly with financial benefits like retirement plans, savings options, and stock offerings – because they don’t understand how they work or why they matter.
When employees understand how these benefits work and how they align with their wider financial health and long-term goals, benefits engagement and utilization sharply increases. For example, some organizations have seen 88% of employees utilize all their benefits, others have over £100,000 in National Insurance costs, and employees have benefitted from understanding their retirement plans.
By providing financial education that employers employees to confidently use their benefits, employers can help reduce stress, build financial confidence and support better decision making. For organizations, closing this gap improves satisfaction, strenghtens retention and drives higher engagement and ROI – creating meaningful impact for both employee and employer.
The path forward
Helping employees understand and use their benefits is more important than ever in today’s financial climate – because benefits alone aren’t enough to reduce stress or drive engagement. Financial education is the key to turning benefits awareness into real action, empowering employees and delivering greater impact for organizatons. To learn more about how financial ecuation can close this gap and boost both wellbeing and business results, explore our latest insights.
Want to learn more? Find out the missing link between benefits awareness and utilization in our factsheet.