Remote and hybrid working models aren’t just a trend; they’re the new reality for a significant portion of the workforce. As we move into 2025, companies are evaluating and solidifying their hybrid and fully remote models, which will continue to reshape the landscape of employee benefits, workplace culture, and financial wellness. Many employees are now able to work from anywhere. For a distributed workforce, traditional financial wellness programs may no longer address the unique needs and challenges remote and hybrid employees face.
From navigating varied tax laws to handling cost of living disparities, remote employees encounter financial considerations that are often complex and location-specific. Employers seeking to attract, retain, and support their remote workforce must evolve their financial wellness strategies to address these distinct needs. We’ll explore the financial challenges that remote and hybrid workers are likely to face in 2025 and learn how businesses can adapt their financial wellness offerings to provide targeted support to their employees.
The Rise of Remote & Hybrid Work and Its Financial Implications
A 2024 report by Owl Labs found that 27% of workers are currently working in a hybrid role and 11% are fully remote, an overall increase from 2023.
Both remote and hybrid jobs offer employees greater flexibility, but they also introduce new financial dynamics that many employees may not be prepared to handle independently. While remote and hybrid work may reduce commuting costs, it also brings other financial complexities, such as handling different state or even country-specific tax laws, accounting for disparities in the cost of living, and managing home office expenses.
According to the 2024 Wellness Barometer Survey, 91% of employees are stressed about their finances, and there is a significant gap between leaders’ perception of what their company offers and the tools employees actually need to achieve their financial goals. Without adequate support, the challenges of remote work can create additional financial stress, reduce productivity, and even impact employee retention. Many employees believe that their employer is responsible for their financial well-being — a sentiment that employers can find increasing value in acknowledging as they adjust to a distributed workforce.
Key Financial Challenges for Remote and Hybrid Workers
To provide effective support, it’s important for companies to first understand the unique financial hurdles remote employees face. Here are the primary challenges:
Tax Complexity Across Jurisdictions
Remote work has blurred geographical boundaries, but tax regulations haven’t kept pace. In 2025, remote workers may find themselves subject to multiple tax jurisdictions if they work in one state or country but live in another. U.S. tax regulations, for example, can require workers to file taxes in both their home state and their employer’s state, depending on specific agreements between states.
For international remote workers, tax complexity increases. Employees working from different countries face not only local tax laws but also issues around double taxation, foreign earned income exclusions, and varying compliance requirements. Navigating these complexities can be overwhelming without specialized knowledge or support.
Cost of Living Disparities
Remote work allows employees to live where they choose, often outside of expensive urban centers. However, cost of living disparities present financial challenges for both employers and employees. Some companies offer location-based pay, adjusting salaries to reflect the local cost of living, while others maintain standard compensation across all locations.
This disparity can lead to confusion and dissatisfaction, as employees compare their pay to colleagues or others in similar roles in high-cost areas. In 2025, as remote work continues to mature, companies will likely face increasing pressure to address these discrepancies with transparency and fairness.
Home Office Expenses
While remote and hybrid work eliminates commuting costs, it introduces new expenses for home office setup, maintenance, and utilities. Many employees must now cover the cost of ergonomic furniture, high-speed internet, and other equipment that supports a productive work environment. In a 2022 survey by Owl Labs, 77% of remote workers reported spending an average of $862 on home office equipment alone. Without adequate reimbursement, these costs can create a financial strain, particularly on employees with lower incomes.
Access to Local Financial Resources and Advice
Remote employees who relocate to new regions often have limited access to local financial resources, such as region-specific investment opportunities, loan programs, or financial advisors. In some cases, this can leave employees financially isolated, especially if they’re unfamiliar with the local financial landscape.
Increased Insurance Needs
Insurance coverage for remote workers can differ significantly from that of in-office employees. For example, home office setups might not be fully covered by standard renters or homeowners insurance, and employees working from abroad might need special international health coverage. Without adequate support and information, employees can be left underinsured and financially vulnerable.
Adapting Financial Wellness for a Remote and Hybrid Workforce
As these unique challenges come to the forefront, businesses must evolve their financial wellness offerings. Here are some strategies to consider for supporting remote employees:
Provide Access to Tax Support and Guidance
To address the complexity of remote work taxes, companies can partner with tax professionals or software providers to offer guidance on multi-state or international tax issues. Providing tax education resources, online workshops, or even reimbursements for tax advisory services can help employees manage their obligations confidently and accurately.
Best Practice: Consider including tax support as a component of your financial wellness program. Some companies have begun offering tax preparation allowances or access to financial consultants who specialize in remote work tax scenarios, reducing stress and compliance risks for employees.
Implement Flexible and Transparent Compensation Models
One of the most contentious issues in remote work is how to handle location-based pay. Companies should define a clear, transparent compensation policy that accounts for cost of living differences in a fair and understandable way. This could mean offering a tiered salary structure based on geographical location or committing to a single, role-based salary scale regardless of location.
Best Practice: Survey your workforce to understand their preferences around compensation transparency and flexibility. Companies like Reddit and Zillow have pioneered location-agnostic pay models, while others have adopted location-adjusted pay that varies by region. Either way, transparency is key to fostering and reducing dissatisfaction.
Offer Stipends for Home Office Setup and Maintenance
Supporting remote or hybrid employees with a home office stipend can help offset some of the costs associated with creating a productive workspace. This stipend could cover essential expenses like ergonomic furniture, office supplies, internet upgrades, or monthly utility bills.
Best Practice: Offer an annual stipend or one-time setup reimbursement that allows employees to customize their home office according to their needs. This not only supports productivity but also shows a commitment to employees’ comfort and work-life balance.
Provide Access to Localized Financial Resources and Advisory Services
Because remote employees may be geographically spread out, financial wellness programs should offer flexible, location-specific resources that cater to varied needs. Partnering with financial advisory firms that provide remote-friendly services, such as virtual financial planning sessions, can make a big difference.
Best Practice: Include a digital platform in your financial wellness package that offers remote-friendly access to resources like budgeting tools, debt management advice, and personalized financial counseling. SaaS-powered benefits solutions (like BrightPlan) offer customizable, digital financial wellness solutions that can help employees access localized support no matter where they are.
Expand Insurance Offerings for Remote Needs
Providing comprehensive insurance options that reflect the unique needs of remote workers can enhance financial security. Offering coverage for home office equipment, supplemental health insurance, and international policies can ensure that remote employees feel supported, no matter where they are based.
Best Practice: Conduct a benefits assessment to determine the gaps in coverage for remote employees. Offering optional insurance plans for specific needs — such as device protection, cybersecurity, or global health coverage — can help remote employees feel more financially secure and prepared for any contingency.
Host Financial Education Sessions Tailored to Remote and Hybrid Challenges
Regularly providing financial education sessions focused on remote or hybrid work-specific topics can help employees stay informed and reduce financial stress. Topics like “Managing Multi-State Taxes”, “Cost of Living Adjustments for Remote Workers”, and “Building an Emergency Fund for Freelancers and Contractors” can address immediate and relevant financial concerns.
Best Practice: Consider hosting monthly or quarterly financial wellness webinars that target different aspects of remote financial planning. Offering recorded sessions or Q&A formats allows employees to learn at their own pace, and providing follow-up resources — such as budgeting templates or links to recommend tax advisors — can reinforce learning.
The Benefits of Adapting Financial Wellness to Remote and Hybrid Work’
Investing in a comprehensive financial wellness program for a remote or hybrid workforce is more than just a perk for employees — it’s a strategic advantage for employers. Supporting employees in managing their unique financial challenges helps reduce stress and improve productivity. According to PwC’s Employee Financial Wellness Survey, financially healthy employees are 12 times more likely to be satisfied at work and less likely to seek employment elsewhere.
Companies that adapt their financial wellness programs for remote and hybrid workers also foster a more inclusive, resilient workplace culture. By acknowledging and addressing the specific financial needs of a distributed workforce, businesses demonstrate that they value employees’ well-being no matter where they work. This commitment to flexibility and support can enhance employer brand, making it easier to attract and retain top talent in a competitive landscape.
As remote and hybrid work continue to redefine the workplace landscape in 2025, adapting financial wellness strategies to support a distributed workforce will be essential for mid-sized and large businesses alike. From tax support to flexible compensation models, home office stipends, and remote-friendly financial resources, there are numerous ways to tailor financial wellness programs to meet the evolving needs of remote and hybrid employees.
Investing in these adaptations is more than a response to immediate trends — it’s a forward-looking strategy that prepares companies for a future in which remote work is an integral part of the professional landscape. By providing robust financial wellness support, businesses can empower their employees to thrive, driving long-term success for both individuals and the organization as a whole.
