Why financial wellness should start with employees' paychecks

• Key Insight: Learn how paycheck-anchored financial guidance is replacing generic financial wellness programs.
• What's at Stake: Failure to align paychecks risks forfeited benefits and reduced employee retention.
• Forward Look: Expect rapid adoption of platforms linking personalized guidance directly to compensation data.
• Source: Bullets generated by AI with editorial review

Employers have invested heavily in financial wellness tools that go beyond the basics, but most employees still don't even know how to set up their paychecks.  

Traditional financial wellness tools give employees access to a wealth of information about their finances, but they rarely help employees understand how those insights will impact their take home pay. Whether it's saving more, or adjusting their withholdings for HSAs, FSAs or taxes, employees aren't being given the proper education or guidance on how those choices affect their overall compensation. 

Instead, employees are on "financial autopilot," says Brian Harrison, president of SAVVI Financial. When workers fail to adjust their paychecks to fit their lives, they stand to lose thousands of dollars in potential value each year, whether by missing retirement plan matches, unknowingly forfeiting FSA funds, or underusing benefits their employers are already paying for.

Read more: Workplace emergency funds gain steam as workers struggle to save

"The consequences of this show up everywhere," Harrison says. "Financial stress is at a boiling point and for many, that stress affects family decisions, work performance, and even their health. And from an employer perspective, this all hits retention."

The key to comprehensive financial wellness

Sixty-nine percent of employees say they would feel more loyal to their employer if they received help stretching their paycheck, according to SAVVI, and 67% say they'd be less likely to job hunt if their pay felt aligned with their goals. To meet this demand, leaders should invest in innovative solutions or platforms that are delivering personalized guidance tied directly to an employee's compensation data. That way, the advice and action plan employees receive from these tools is tied directly to their financial situation, even when it changes, helping them understand their choices and make better decisions. 

"We're going to move from general financial wellness to paycheck-anchored financial strength and that shift is happening quickly," Harrison says. "Costs are rising; people need to squeeze more value from every dollar." 

Read more: Why long-term care should be included in financial planning

Harrison urges HR and benefit leaders to refocus their financial wellness strategies. Compensation and benefits only deliver return-on-investments if employees actually use them, he says, and as of now there's too much value being left on the table. 

"Leaders who modernize their approach will have a more engaged, financially confident workforce," Harrison says. "When you meet people where they earn, they take action. That's how you help them capture the full value of their benefits and avoid wasted dollars."