Financial stress costs U.S. employers $250B annually in lost productivity. Learn how adaptive, whole-person care—including financial coaching—helps employees manage money stress while boosting resilience, engagement, and retention.
Financial well-being is often seen as a personal matter. Yet when viewed collectively, economic worries create strain that extends far beyond individuals and their families. Research shows that up to 60% of full-time employees feel stressed about money—and that stress cascades directly into the workplace.
In the U.S., employers lose up to an estimated $250 billion in productivity each year as workers spend time distracted by personal financial concerns. Modern Health’s workforce survey highlights the scale of the issue: nearly 70% of Gen Z and Millennial employees report that financial stress regularly impacts their work performance.
As financial pressures mount globally, employees find themselves more anxious about everyday expenses and are bringing that anxiety to work—with consequences for engagement, retention, and organizational health. The question is: are employers prepared to address the full impact of financial stress on their workforce?
For many, money is an emotionally charged topic—and one of the top causes of stress. More than half (55%) of employees say financial struggles harm their mental health, and a U.K-based study found that 86% of those with existing mental health problems report that money worries worsen their symptoms.
The impact is even more pronounced among younger workers: 75% of Gen Z and Millennial employees say money-related stress contributes to burnout.
The emotional effects of financial stress often manifest as:
In severe cases, prolonged financial distress can intensify symptoms of existing mental health conditions, increasing the risk of suicidal thoughts and behaviors. The combination of financial strain, reduced emotional resilience, and social isolation can create a dangerous feedback loop—one that underscores the need for early, preventive support and accessible pathways to care.
Debt, financial hardship, and perceived income gaps compared to peers, regardless of actual income, are especially linked to higher rates of depression, while unmanageable debt is closely tied to anxiety and anger.
The effects of financial stress don’t stop at mental health—they can also take a measurable toll on physical well-being. Research shows that financial worries are linked to back and stomach pain severe enough to disrupt work. Stress in general can also bring on or worsen:
Modern Health’s workforce well-being report echoes these findings: over 75% of employees say financial anxiety has negatively affected their sleep, mood, or energy—factors that directly reduce productivity.
Unchecked, these physical impacts increase absenteeism, drive up health care costs, and lead to higher medical claims—all directly affecting an organization's bottom line.
“Financial wellness is deeply connected to our overall well-being,” says MicKallyn Elis, a financial coach within the Modern Health network and founder of the Cash Coach.
“When we gain control over our finances, it doesn’t just help from a dollars-and-cents standpoint—it can reduce stress in our relationships, jobs, and day-to-day lives. The more confidence and clarity we build around money, the more it supports our overall health.”
Here’s how financial anxiety hurts businesses:
More than half (56%) of financially stressed employees spend at least three hours of work time each week handling personal finances. 47% say mental health challenges tied to money diminish their productivity.
Financial stress is associated with a 34% spike in absenteeism and tardiness, with financially anxious employees missing nearly twice as many workdays as those who feel financially secure.
And even when they’re present, financial anxiety can undermine engagement and motivation. Modern Health’s data further indicates that 69% of employees delayed leaving a toxic job for financial reasons, illustrating how money stress can both disengage and immobilize workers.
Financial stress can both trap employees in unhealthy jobs and drive turnover elsewhere. Financially stressed employees are twice as likely to seek new employment—especially underrepresented groups who may feel their needs are being overlooked.
Roughly 38% of financially worried employees say their stress reduces job satisfaction, while 26% report it harms workplace engagement.
Financial stress impacts every dimension of an employee’s life, and narrow or fragmented benefits often fall short. Traditional programs tend to overlook the behavioral and emotional roots of financial anxiety. Therapy alone, for example, won’t address challenges like unmanageable debt, lack of savings, or rising living costs.
Employers need solutions that adapt to the full spectrum of employee needs. An adaptive care approach integrates financial health into broader well-being strategies, combining therapy, coaching, and digital resources in a way that flexes to different levels of severity and different life circumstances.
By treating financial stress as a driver of overall mental health—not a separate issue—organizations can better promote both employee resilience and business performance.
Effective support is proactive, inclusive, and adaptable. Employers can take action in several ways:
Money and mental health are topics many feel uncomfortable discussing at work, which can make employees reluctant to seek help. Employers can reduce stigma by training managers to engage with empathy, encouraging leadership transparency, and normalizing concerns about financial stress into broader well-being conversations.
Coaching is a powerful way to support employees who may not need clinical care but still struggle with financial stress and worry. Financial coaching helps employees build budgeting and saving habits, manage debt, and reduce the emotional weight of money stress.
Research shows coaching can improve overall well-being, support recovery from depressive symptoms, and increase employee confidence. Within an adaptive care model, coaching works alongside therapy and digital tools, ensuring employees get the right type of support at the right time.
Not every employee is ready for—or needs—one-on-one care. Digital resources, such as budgeting modules, guided meditations to address financial anxiety, and peer communities, allow employees to engage privately and at their own pace. Employers should look for solutions that integrate these tools with coaching and clinical care so employees can move seamlessly between modalities as their needs change.
Employees with access to employer-sponsored financial wellness resources are twice as likely to be satisfied with their jobs.
Financial stress doesn’t look the same everywhere. Cultural attitudes toward money, family obligations, and help-seeking shape how employees experience and address financial anxiety. Employers should seek programs that offer diverse perspectives and multiple languages, and that can scale globally across regions and cultures. A broad provider network ensures employees can find care that reflects their values and lived experiences.
Financial stress is multifaceted—it affects emotional, behavioral, and physical health. Importantly, this relationship is cyclical: financial strain worsens mental and physical health, which can in turn make it harder to manage finances effectively. Programs that take a whole-person approach and adapt to employee needs over time are the most effective.
Whether through therapy, coaching, or digital resources, an adaptive care model helps ensure employees receive timely, relevant support that improves both well-being and business outcomes.
Financial well-being and mental health are inseparable—and together, they shape whether employees can thrive at work and at home. When financial anxiety drains focus, energy, and resilience, it also erodes productivity, retention, and organizational performance.
Employers that address financial stress as part of a broader, whole-person mental health strategy are better positioned to support their people and protect their bottom line. The most effective programs are not one-size-fits-all—they are adaptive, inclusive, and capable of flexing across different needs, life stages, and cultures.
With more than half of employees reporting financial stress, the question isn’t whether organizations can afford to act, but whether they can afford not to.
Learn how Modern Health’s adaptive care model integrates financial coaching, therapy, and digital resources to deliver the right support at the right time—and strengthen both workforce well-being and business outcomes.
