Holiday gift-giving can bring joy for many consumers, but it also slips in an unwanted side effect—mounting debt.
Americans celebrated the 2024 holiday season by spending an average of $1,652 per person, which means many employees are now facing the sobering reality of their financial decisions in the new year. In particular, financial stress hits younger workers the hardest during the holidays, with 64% of Gen Z and millennials feeling the sting as they rebuild their savings.
Companies that support their employees' financial wellness through dedicated programs see worker productivity and participation boost by 21%. That’s why employers across the board are currently evaluating their financial wellness resources to find creative, impactful ways to help employees recover from holiday spending, and also build stronger financial habits.
Learn which benefits make the biggest impact to improve employee financial wellness, and which engagement techniques keep workforces coming back for more financial advice.
Understanding the Post-Holiday Financial Impact
The financial reality of the holidays is hitting home for many Americans as they head into the new year. Recent studies show that half of all consumers are actively in debt due to holiday spending, with 37% thinking they'll need at least two months to pay off what they bought during the season.
To make matters even more complicated, research shows that holiday spending habits vary widely between employees from different age groups. Here's what the numbers tell us from 2024:
- Valentine's Day alone saw Gen Z and millennials spend an average of $262 per household
- Money worries continue to remain the main holiday stress factor for 58% of U.S. working adults
- All but one of these Americans are still trying to clear their holiday debt from 2023
As a result, employees are bringing their financial worries into the workplace, affecting the way they work and engage. Not only does financial stress hinder productivity and job satisfaction, but it also increases absenteeism, work quality, and on-the-job accidents.
Fortunately, companies are taking notice of the financial burdens caused by holiday spending, leaning on smart, cost-effective solutions within their employee wellness programs. Providing resources and direct lines to ease financial stress has been shown to cut turnover by 41%, while also helping employees save an average of $1,200 each year.
In other words, corporate wellness programs with robust resources geared towards improving financial wellbeing not only help employees build healthier habits—they also boost retention and personnel profits for businesses.
But just like choosing the perfect holiday gift requires careful thought and consideration, so, too, does deciding how to get employees to actually use financial wellness resources. Fortunately, with a fun, educational, and incentive-fueled wellness platform at the ready, employers can help their workforces pilot their own journeys toward improved financial wellbeing.
Let’s explore three essential program features that are proven to help employees acquire healthier saving, budgeting, and debt management skills.
1. Easily Trackable Games and Challenges
One of the most common ways companies help employees improve their financial wellbeing is through game-based digital trackers that allow employees to record their smart financial decisions in real time.
With 52% of employees preferring digital apps to manage their finances, it’s clear to see why personal trackers have helped thousands save and budget responsibly. Add an element of gamification to the mix—like streaks, leaderboards, or progress bars—and utilization of financial wellness resources quickly adds up.
For example, consider designing challenges that allow employees to track high-end purchases, upload coupon receipts, or record specific saving habits (i.e. dining in versus ordering out). Personalizing challenges based on real-life situations employees face day-to-day motivates them to use rather than lose the financial resources at their disposal, helping them build healthier habits and boosting program participation at the same time.
2. Direct Lines to 1:1 Financial Counseling and Workshops
Research shows that 90% of employees feel less stressed about money after they work with a financial advisor. And with three out of ten employees preferring access to financial advice through digital portals, it’s never been more important to include personalized financial counseling in corporate wellness programming.
From company-wide financial literacy workshops to 1:1 chats with advisors, linking employees to top-of-the-line financial counselors is the most impactful route to easing post-holiday money challenges. Financial experts can work with employees to create custom plans that address:
- Debt management and holiday spending recovery
- Emergency savings strategies
- Retirement planning
- Student loan repayment options
- Credit score improvement tactics
To encourage employees to book time with advisors, many companies designate days quarterly or monthly where workforces can block off time for 1:1 sessions with financial counselors without worrying about work. As a result, giving employees free access to these resources not only reduces post-holiday money stress, but gradually helps them feel more financially secure.
3. Rewards and Incentives for Utilization
The most effective way to help employees bounce back from holiday spending? Rewarding them with cash (or equivalent rewards), of course!
Points-based recognition systems show double the participation rates compared to cash-free incentives, and companies that use these incentive programs see improvements in staff retention, productivity, and overall morale. These financial wellness programs work best with many types of rewards, including:
- Matching contributions for emergency savings accounts
- Points redeemable for financial planning services
- Performance-based incentives tied to savings goals
- Recognition rewards for debt reduction milestones
To take participation to the next level, many employers also use gainsharing programs, where employees earn rewards when they exceed productivity targets or save costs. Incorporating shoutouts or other types of recognition encourages employees to return for more, reinforcing positive habit-building.
Make Every Penny Count with Your Wellness Program
Financial stress from holiday spending directly affects workplace productivity and employee wellbeing. Digital trackers, personal counseling, and rewards make saving fun and available to everyone, improving productivity, lowering turnover, and strengthening employees’ saving muscles.
Wondering how you can fill the gaps in your organization’s financial wellness program? Reach out to our engagement experts to discover which digital benefits could set your workforce up for financial success in 2025 and beyond.
