Employee financial stress is draining productivity, driving absenteeism and undermining workforce health. These low points create a price tag for employers that has reached staggering levels. That’s the central finding of a new report from industry analyst firm Valoir, which estimates that financial stress costs U.S. employers more than $1.1 trillion in lost productivity each year.
The report, Employee Financial Wellness, is based on a survey of more than 500 hourly and salaried U.S. employees conducted in 2025. It found that the average worker spends 3.3 hours per week handling personal financial issues while on the clock. At the high end, roughly 8% of employees reported spending 10 or more work hours per week on financial matters.
Financial stress is widespread and worsening
Nearly 80% of employees say financial wellbeing is at least a moderate source of stress, and more than one in 10 cite it as their single biggest stressor overall. Almost one in three employees reported feeling more financially stressed than they were a year ago, with nearly half of salaried employees saying they need two or more sources of income to meet their basic financial needs.
Additionally, Valoir found that financial stress is highest among employees earning less than $25,000 a year and those earning more than $125,000, with elevated housing costs, lifestyle expenses and career risk exposure driving stress at the higher end of the income scale.
The health and performance consequences are significant, according to Valoir’s findings. More than 30% of employees say their mental or physical health has been negatively affected by financial stress, a figure that climbs above 50% among those with the highest stress levels.
A clear ROI for employers
The report argues that financial wellness programs have moved from a nice-to-have perk to a strategic business priority. Valoir identified three key areas where employers stand to benefit. These are increased productivity, reduced absenteeism and improved talent attraction and retention.
“Finances remain the single biggest stressor for employees,” Rebecca Wettemann, CEO of Valoir, told HR Executive. “That stress isn’t just bad for employees; it’s costing employers about 8% of worker productivity, on average.”
On the talent front, the majority of employees consider financial wellness benefits at least a minor factor when deciding where to work, with more than 12% calling them a deciding factor. The appeal is strongest among younger workers. More than 66% of employees aged 18 to 24 rate these benefits as a major or deciding factor, compared to 39% of those aged 65 to 74.
Despite the demand, Valoir researchers found that nearly 20% of employees currently have no access to any financial wellness benefits. Emergency savings and retirement planning topped employees’ wish lists when asked where they’d like additional benefit dollars directed, yet fewer than 13% of employees currently have access to employer-sponsored emergency savings programs.
“Financial wellness isn’t just a fluffy benefit,” says Wetteman. “It’s a lever for reducing burnout, improving retention and driving measurable productivity and performance gains.”
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