In today's competitive talent landscape, organizations are discovering that traditional benefits packages are no longer enough to attract and retain top leaders and contributors. One real differentiator? Financial wellness programs, such as the one in which Newrez partners with E4E Relief to provide immediate, tangible relief when employees need it most.
At Newrez, we've witnessed firsthand how an Emergency Financial Relief program transforms not just individual lives, but organizational culture and performance. The business case is compelling: When employees are financially secure, they're more productive, engaged and loyal.
The Hidden Cost of Financial Stress
Financial stress affects approximately 60% of American workers, according to PwC's Employee Financial Wellness Survey. This isn't just a personal problem; it's a business problem. According to PwC's 2023 Employee Financial Wellness Survey, among financially stressed employees who are distracted at work because of their finances, 56% spend three hours or more per week at work dealing with or thinking about issues related to their personal finances
The ripple effects are significant: decreased productivity, increased absenteeism, higher healthcare costs and accelerated turnover. Workable cites The Society for Human Resource Management (SHRM) in reporting that replacing an employee can cost six-to-nine months of that person's salary. When financial stress drives talent out the door, the organization pays a steep price.
Emergency Financial Relief: The ROI Story
Employee emergency assistance programs deliver measurable returns across multiple dimensions. These programs provide rapid financial relief for unexpected crises—medical emergencies, natural disasters, car repairs or housing instability—that can otherwise derail an employee's financial stability and work performance.
The quantifiable benefits include:
Perception impact: How employees view their employer fundamentally shifts when emergency assistance is available. Bank of America's Workplace Benefits Report found that 84% of employers agree that offering financial wellness support can result in more satisfied, loyal, engaged and productive employees. Additionally, The Employee Benefit Research Institute (EBRI) Financial Wellbeing Employer Survey found that increased employee productivity and improved overall worker satisfaction were the top factors in measuring financial wellness initiatives' success. This perception translates directly to employer brand strength—employees become authentic advocates who attract quality candidates through genuine testimonials about organizational care and support. Newrez’s Emergency Financial Relief offers tangible evidence: Through E4E Relief’s survey-based measurement tool, ImpactStack®, 98% of grantees report satisfaction with the program.
Productivity gains: Our program’s results reveal that 96% of employees who have received financial assistance maintained their productivity levels, proving that removing the distraction of financial crisis allows employees to focus on their work.
Recruitment advantage: Bank of America's Workplace Benefits Report found that 81% of employers say wellness tools help attract higher quality employees. In competitive talent markets, this differentiation matters.
Healthcare cost reduction: Financial stress contributes to physical and mental health issues. The American Psychological Association links money concerns to increased anxiety, depression and chronic health conditions. By addressing financial wellness proactively, organizations can reduce healthcare utilization and associated costs.
Building a Strategic Approach
Effective employee emergency assistance is about creating sustainable support systems. The most successful programs combine Emergency Financial Relief with financial education, creating pathways from crisis response to long-term stability.
Key elements include:
The Competitive Imperative
As we navigate economic uncertainty and evolving workplace expectations, financial wellness has moved from the periphery to the center of talent strategy. Organizations that recognize this shift—and invest accordingly—will capture competitive advantages with respect to organizational goals and KPIs.
The question isn't whether you can afford to invest in employee financial wellness. It's whether you can afford not to invest in your employees’ comprehensive well-being. In an era where talent is the ultimate competitive differentiator, supporting employees through their most vulnerable moments isn't just compassionate leadership—it's smart business.
About the Author
As Director, Community Investment at Newrez, Jane Hughes Award-winning corporate social responsibility, community engagement and program operations professional with a demonstrated history of working in the private and public sectors, including city and federal government, architecture & design and finance industries.