What’s in the blog?
This blog explores why traditional engagement activities often fall short and how financial stress is the hidden barrier to true employee engagement. It highlights why HR leaders in India must bring financial wellness into the centre of their people strategies to build trust, loyalty, and lasting impact.
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If you’re an HR professional, you’ve probably been at the receiving end of more jokes than you care to count. From stand-up comedians to Instagram reels, HR often gets portrayed as the team that exists only to make people dance on Diwali, do rangoli competitions, or plan Friday fun.
But if you are an HR, you know how far this is from reality. You know the endless brainstorming behind every team activity, wellness initiative, or engagement drive. You know the sleepless nights spent thinking: “What else can I do to make my people feel connected and cared for?”
And yet, despite all this effort, HR often remains misunderstood. Employees may politely participate in the fun, but somewhere in their hearts, they might still be thinking: “Why does HR waste time on these things when we have real problems?”
And it’s uncomfortable to accept, but maybe employees aren’t wrong to feel that way…
The Engagement Gap No One Talks About
Let’s be real. When someone is lying awake at night, anxious about their EMI, their parents’ medical bills, or their child’s education fund, no cultural day or office game can erase that stress.
In the U.S., 91% of employees report being financially stressed, according to BrightPlan’s 2024 Wellness Barometer. On average, they lose 7+ hours of productivity every week worrying about money.
We don’t yet have a comprehensive India-wide survey similar to that, but early signs suggest the situation here is no better. In fact, it may be worse!
As Business Manager (an HR magazine) highlighted recently, 73% of Indian employees say they feel financially stressed. Add to that our cultural reality… many young earners here don’t just provide for themselves but often shoulder the financial responsibility of parents, siblings, or extended family. People coming from Tier 2, Tier 3 cities or even villages to metro cities like Mumbai and Bengaluru for a job, manage the high living expenses of these cities while sending a portion of their earnings back home.
So yes, companies might be paying competitive salaries, but employees may still feel financially stuck. The reason behind this may be:
- They aren’t sure how to budget effectively.
- They don’t fully understand tax planning, investments, or debt management.
- They underestimate how stress about money is stealing their peace of mind.
And that’s where you can step in as an HR, not with another cultural day, but with something far more impactful: employee financial wellness.
Why Financial Wellness = True Employee Engagement
Employee engagement is all about helping employees bring their full selves to work, right? But how can they, when a part of them is constantly calculating “How do I make this month work?”
Financial stress doesn’t just affect wallets. BrightPlan found that:
- 72% of employees said money worries harm their mental health.
- 62% said it affects their physical health too.
Closer home, Indian surveys echo the same… employees admit to feeling distracted, unmotivated, even resentful when their financial life feels out of control.
Now think… how many hours of productivity, how much potential, is your company silently losing every week?
So, as an HR, when you step into this space, you don’t just offer another benefit. You help employees feel safe and organization grow better. You show the employees that the company cares about their real lives, not just their outputs, while actually boosting their outputs.
This will help you build trust and deepen loyalty. And that’s when your employee engagement becomes real.
Why Most Corporate Wellness Programs Miss the Mark
We know many corporate houses and companies are now moving towards financial wellness programs for their employees. But, unfortunately, most of them often treat financial wellness as a ‘tick-the-box’ benefit.
They would share a video on investments or a PDF on retirement planning and tick off their financial wellness program. But these initiatives often fall flat on their face because they don’t solve the actual struggles of the employees.
From what we understand from our regular interactions with corporates and their employees is that
- Employees need personalized, practical guidance, not generic content. Today, generic content is available all over the internet for free.
- They need help with short-term concerns (debt, cash flow, EMIs) as much as long-term wealth.
- They need ongoing nudges, not one-time sessions. They need trusted people with whom they can share their real money challenge and get actionable advice.
This is where HR’s role is so critical. You already know your people. You understand their stress points. You can bridge the gap between what corporates think employees need and what employees actually need.
What an HR Can Do For Employees’ Financial Well-being
If you want your Employee Engagement Programs (EAP) to actually touch employees’ lives, you must focus on their financial well-being. Here’s what you can do to get started:
- Start with listening. Survey your teams. Ask what their biggest money worries are.
- Focus on now, not just later. Help employees with EMIs, tax planning, savings basics, before talking retirement.
- Make it personalized. A 25-year-old fresher and a 40-year-old parent need different guidance.
- Integrate it with wellness. Financial stress is mental stress. Tie financial wellness to your EAP, mental health, and physical wellness programs.
- Offer real access. Tools, coaches, workshops, and ongoing nudges.
When employees see HR making this shift, they stop rolling their eyes at ‘fun Friday’ events. Because they feel: “Finally, someone understands what really keeps me awake at night.” And that is truly what you want your team to feel about you. Isn’t it?
The Missing Link You Can Deliver With a Partner
Personal finance is a complex subject. You need an expert to shoulder this responsibility with you. That’s where partners like MoneyAnna come in.
Through our IAP (Investor Awareness Program) service, we help HR leaders like you bring structured, empathetic financial wellness to employees. From tax literacy and budgeting workshops to personalized planning guidance, we make sure your people feel supported where it matters most. We understand finance. We understand people. And we are committed to listening, guiding and simplifying money for everyone.
Remember, in the future of work, financial wellness won’t be a ‘nice-to-have’ gesture but the cornerstone of how engaged, loyal, and resilient your workforce truly is. Because Gen Z knows what they deserve, and they don’t shy away from prioritising themselves.
Frequently asked questions (FAQ)
Employee financial wellness is the state where employees feel secure, confident, and in control of their personal finances. It goes beyond salary and includes knowledge, planning, and support to manage expenses, savings, debt, and future goals.
HRs must care about the financial wellness of employees because financial stress directly impacts productivity, engagement, and retention. Employees distracted by money worries can’t fully focus at work, leading to lower morale and higher attrition.
In India, many employees support not only themselves but also their families. High living costs, EMIs, and a lack of financial literacy add pressure. This stress reduces trust in employers and makes engagement programs feel irrelevant.
Programs that focus on practical topics like budgeting, tax planning, debt management, and building emergency funds resonate the most. The key is personalization and ongoing support, not one-time sessions.
HR can identify employees’ real money concerns, introduce personalized guidance, integrate financial wellness with existing wellness programs, and provide tools or workshops that help employees manage both short-term and long-term financial goals.
