Rising inflation. Market volatility. Ongoing layoffs and restructuring in certain industries. Today's employees are navigating an increasingly uncertain financial landscape -- and they're bringing that stress with them to work.
During times of economic instability, employers have a unique opportunity to offer more than just reassurance; they can offer practical, personalized support that strengthens employe well-being and engagement. Financial wellness doesn't just help employees cope with uncertainty: it empowers them to plan, adapt, and thrive in spite of it.
Here's how HR leaders can support employees through economic uncertainty and foster a more resilient, confident workforce.
Economic uncertainty impacts employees in many ways, and it impacts all employees, regardless of their level of income or financial security. During financially uncertain times, employees across the board experience:
Financial stress doesn't just affect those living paycheck to paycheck. In fact, A 2024 report by Best Money Moves highlights that more than half of Americans living paycheck to paycheck, including 42% of workers earning over $100,000 per year, underscoring the widespread impact of financial stress across all income levels. Whether employees are struggling, surviving, or even thriving financially, economic uncertainty can trigger anxiety, stall progress toward financial goals, and undermine confidence in financial decision-making.
Struggling employees may already be in crisis mode, and might be juggling overdue bills, mounting debt, or insufficient income to cover basic needs. Economic instability only deepens their vulnerability, often forcing trade-offs between essentials like rent, food, and healthcare.
Surviving employees who aren't struggling but aren't quite thriving may appear stable on the surface, but they often live without a financial safety net. These employees are especially sensitive to inflation, interest rate hikes, or unexpected expenses. Even a minor disruption, like an unexpected car repair or reduced work hours, can cause major setbacks, leading to high stress and low engagement at work.
Thriving employees might have higher incomes or more assets, but that doesn't mean they're immune to financial worry. Market volatility, retirement uncertainty, or fear of future instability can lead to financial anxiety, even if their day-to-day needs are currently being met.
Many employees are postponing major life milestones like buying a home, starting a family, or retiring. According to a 2025 report by Zety, 50% of workers surveyed reported that starting or growing a family feels impossible on their current salary, 40% can't save for retirement, and 37% say buying a home is financially out of reach.
Delaying major life goals, like having kids or buying a home, not only impacts a person's sense of personal fulfillment but also contributes to increased stress and decreased confidence in their ability to achieve these goals.
Volatile markets can make retirement planning feel overwhelming or out of reach. Even employees who are actively saving for the future may feel shaken by market volatility and rising living costs.
Employees who are building up emergency savings often describe a frustrating cycle: just as they start to build momentum with savings, unexpected expenses like car repairs, medical bills, or inflation-driven price hikes can derail their progress.
For employees focused on long-term planning, especially for retirement, this process can feel more like guesswork than a clear strategy. Fluctuating markets may cause dips in retirement account balances and investment accounts, shaking confidence and creating uncertainty about whether they're "on track".
This constant sense of financial whiplash leads many employees to disengage from long-term planning altogether, either because they feel behind, the future seems too unpredictable to plan for, or they simply lose confidence in ever being able to save enough to achieve goals like buying a home or going back to school.
Inflation touches every paycheck, regardless of size. From gas to groceries to childcare and healthcare, employees are making tough decisions about how to stretch every dollar.
Struggling employees may already be skipping meals, delaying medical care, or relying on credit cards just to get by.
Surviving employees are constantly juggling priorities -- perhaps cutting back on childcare, postponing car maintenance, or scaling down their savings goals to stay afloat.
Even thriving employees, with steady incomes and benefits, are noticing that their money doesn't go as far as it used to. Rising costs erode their ability to plan confidently, invest, or spend on things that contribute to well-being, like vacations, family care, or personal development.
Financial stress doesn't clock out when employees clock in. Even if it's not openly discussed, it shows up in subtle (and sometimes significant) ways that impact performance, morale, company culture, and even the company's bottom line.
When employees are mentally consumed by money worries (like falling behind on bills or wondering how to pay for a child's medical care), it's hard to stay focused. For example, a struggling employee might spend work hours fielding calls from creditors or looking for part-time gig work to make ends meet.
Financially stressed employees are more likely to take unplanned time off or show up distracted. A surviving employee might call out unexpectedly due to lack of affordable childcare or delay coming to work while managing a car repair they can't easily afford.
When stress becomes chronic, it erodes employee motivation and loyalty. A thriving employee who is concerned about long-term market instability or retirement readiness, for instance, might disengage or start job hunting if they feel their current role doesn't support financial goals or growth opportunities.
When employees are overwhelmed or unsure where to start, they often ignore helpful resources altogether. Someone in the surviving category may be eligible for an employer's HSA or emergency savings match, but avoid enrolling because they need to use that money to make ends meet.
This economic climate may be outside your control, but how you support your employees during periods of uncertainty is not. With the right strategies, employers can ease the financial pressure many workers are facing and create a culture of trust, stability, and resilience. Here are some impactful ways HR leaders can support their employees right now.
Start by acknowledging what many employees are feeling: concern, anxiety, and uncertainty. Create space for honest, judgement-free dialogue about financial challenges. This alone can go a long way in reducing stigma and helping employees feel less isolated.
For example, you might have a company leader share a personal story during a town hall -- like how they once struggled with budgeting or paid off debt with the help of a financial coach. When leaders open up, it signals to employees that financial stress isn't something to hide and that asking for support is not only acceptable, but encouraged.
Use internal channels, manager talking points, or HR newsletters to regularly remind employees that resources are available and that they don't have to figure everything out alone.
In uncertain times, employees don't need broad, generic tips -- they need advice tailored to their specific circumstances. Whether it's building an emergency fund, managing debt, or adjusting retirement contributions, the right support varies for everyone.
Employers can meet this need by offering access to resources such as Certified Financial Planners (CFP®s), AI-driven financial wellness tools (like the Financial Wellness AI Coach), and personalized digital platforms that provide guidance based on income, goals, and life stages.
Many companies already offer benefits that can help employees manage uncertainty, but they may be underused or misunderstood.
Now is a great time for HR teams to gather data-driven employee insights to track benefits engagement and increase awareness and adoption of underutilized offerings.
By spotlighting benefits like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), employer matching programs, student loan repayment assistance, and mental health and EAP services tied to financial stress, employers can help their teams use benefits that make a meaningful difference in their financial wellness.
When the economy is unpredictable, day-to-day budgeting becomes even more critical. Offer employees simple, accessible tools that help them take control, like budgeting apps, on-demand workshops, or webinars, and financial literacy content in multiple formats (like videos, checklists, and guides). Tools like these help employees stretch their paychecks, plan for the unexpected, and build confidence in their decisions.
Help employees shift from reactive to proactive thinking. Economic challenges are real, but so is their ability to navigate them. Frame financial wellness programs around long-term goals, resilience, and growth. Celebrate milestones like hitting a savings goal or improving credit. Empower employees with the mindset and resources to adapt and succeed.
In moments of uncertainty, employees are looking to their employers for more than just a paycheck. They're looking for support, stability, and a sense of security.
By investing in inclusive, personalized financial wellness programs, HR leaders can help employees feel seen and supported no matter what's happening in the economy. When employees feel secure, they're better able to show up and grow with your organization.
Now is the time to lead with empathy and action, and build a stronger, more resilient workforce for the road ahead.