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Supporting Financial Wellbeing is Critical to Recruitment and Retention

1. Employers are focusing on employees' financial wellbeing amid economic challenges. 2. 47% of employers are increasing financial wellbeing initiatives this year. 3. Gallagher report emphasizes financial health for employee engagement and retention. 4. Employers are expanding offers beyond retirement plans to include financial wellness programs. 5. Innovative benefits like tuition assistance and debt counseling are growing in popularity.

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Why Bullish?

Gallagher's proactive stance on financial wellbeing can enhance employee engagement, potentially boosting retention and growth. Previous instances such as increased client acquisitions during shifts in employee benefits underscore this positive trajectory.

How important is it?

The significant focus on financial wellbeing aligns with AJG's services, indicating likely growth opportunities in a changing market. Given Gallagher's expertise, this trend is likely to attract more clients in need of these services.

Why Long Term?

The shift towards comprehensive financial wellness strategies indicates sustained industry transformation, which could enhance AJG’s growth over several years, similar to past trends seen with wellness initiatives.

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, /PRNewswire/ -- Amid inflation, escalating healthcare costs, and mounting student debt, employees are facing unprecedented financial challenges. In response, employers are redefining their role as proactive financial partners, offering resources that help balance immediate stability with long-term preparedness. Gallagher's 2025 U.S. Financial Benchmarks Report highlights the importance of adopting a comprehensive approach to financial wellbeing, integrating support throughout the employee lifecycle. "As workforce expectations evolve, employers have a unique opportunity to reshape how they support their employees' financial wellness," said John Tournet, U.S. CEO of Gallagher's Benefits & HR Consulting Division. "By addressing financial resiliency alongside physical and emotional wellbeing, they can foster loyalty, reduce turnover, and build a more productive workforce that's ready to thrive in today's economic environment." Based on Gallagher's 2025 U.S. Benefits Strategy & Benchmarking Survey from over 4,000 U.S. employers, the report provides data-driven insights and actionable recommendations for employers seeking to enhance workforce wellbeing. The findings emphasize the growing significance of financial health as a cornerstone of employee engagement, retention, and organizational success. Financial Wellbeing as a Strategic Imperative Financial wellbeing has become a top priority for employees navigating rising economic pressures. Nearly half of employers (47%) report an increased focus on financial wellbeing this year, second only to emotional wellbeing (56%). This shift has led to a two-point increase in the number of employers offering at least one financial wellbeing initiative. Employers are introducing tailored resources to support employees through various life stages and personal situations. For example, 54% of employers now include initiatives like will preparation and estate planning, 51% provide financial planning or wealth management services, and 25% offer debt counseling services. These programs not only boost employees' confidence in managing their finances but also reduce financial stress, improving overall engagement and loyalty. Integrating Retirement Planning into Holistic Strategies Retirement planning is increasingly being integrated into broader wellbeing strategies to enhance employee satisfaction and strengthen organizational resilience. The SECURE 2.0 Act has introduced measures such as auto-enrollment, increased catch-up contributions, and improved access for part-time workers, making retirement readiness a critical focus for employers. Currently, 81% of employers offer self-service tools that allow employees to check balances and adjust contribution allocations. Additionally, 67% provide opportunities for one-on-one financial planning appointments, equipping employees with the knowledge and resources to make informed decisions that support financial wellbeing and retirement readiness. By embedding retirement planning into holistic financial wellbeing strategies, employers are helping to alleviate financial stress and distractions, fostering a more focused and productive workforce. Expanding Financial Wellness Beyond Retirement Plans As financial stress continues to impact employees, employers are expanding beyond traditional retirement plans to improve financial wellness and differentiate themselves in a competitive job market. Healthcare costs remain a major source of financial strain, and health savings accounts (HSAs) are emerging as a solution for both healthcare and general financial planning. More than half of employers (55%) offer consumer-directed health plans with HSAs, and 66% of those contribute to these accounts, further increasing their value for employees. Flexible spending accounts are also being utilized to encourage proactive budgeting for specific medical, pharmacy, dental, and vision expenses not covered by health plans. Tuition assistance programs have proven to be a valuable tool for attracting and retaining younger employees, with two-thirds of employers (67%) offering this benefit. Likewise, the conversation around student loan repayment contributions is gaining momentum. Currently, 12% of employers provide this benefit, with 2% adding matching contributions on student debt repayment and another 8% considering it. This growing trend reflects the increasing importance of addressing student debt as part of a comprehensive financial wellbeing strategy. "Investing in the financial wellbeing of the workforce gives organizations a competitive edge," added Tournet. "By taking proactive steps to support financial health through tailored offerings and retirement planning, employers are building a culture based on trust, loyalty, and shared success." ABOUT THE 2025 U.S. FINANCIAL BENCHMARKS REPORT Gallagher's 2025 U.S. Financial Benchmarks Report is part of the Workforce Trends Report Series, which highlights survey results on retirement plan benefits and other supporting coverages. Other reports in the series cover benefits and talent solutions, best-in-class employers, employee communications, and employees' perspectives on voluntary benefit programs. The series is designed to assist employers in developing and optimizing a people strategy focused on holistic wellbeing, enabling their employees and families, their organization, and their communities to thrive. The data and insights are compiled from a variety of Gallagher benchmarking surveys conducted each year. In this report, they're based on the results of the U.S. Benefits Strategy & Benchmarking Survey, gathered from January to March 2025. A total of 4,035 organizations across the U.S. participated. ABOUT GALLAGHER Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management, and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants. Contact: Mary Schwartz, Gallagher 847.378.5893 [email protected] SOURCE Gallagher WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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