MAINTAINING YOUR COMPETITIVE ADVANTAGE: ESSENTIAL FINANCIAL BENEFITS TO WIN OVER MARKET SHARE

Employees all over America are sounding the alarm about the state of financial wellness—and they want their employers’ support.

According to ZayZoon’s 2025 Employee Financial Wellness Report, 80% of U.S. employees report moderate to very high levels of financial stress, and nearly half have no emergency savings.

This stress causes ripple effects across business organizations, like lower productivity, higher absenteeism, and increased turnover. 93% of HR professionals say employees’ financial stress has a financial cost for their company, with 38% reporting losses over $25,000 annually.

As inflation, student debt, and healthcare costs continue to strain household budgets, employees increasingly expect their employers to act as partners in financial health. According to a Wallethub survey, a staggering 93% of people think companies should offer financial wellness tools to employees.

To maintain a competitive advantage, employers must design benefits packages that go beyond the basics to truly support employees’ financial well-being—or risk losing out on talent to their competitors.

Below are four essential financial benefits that can help PEOs and employers attract and retain top talent while strengthening their bottom line.

1. EARNED WAGE ACCESS (EWA)

Earned wage access allows employees to access a portion of their paycheck before payday. Unlike payday loans or credit cards, EWA helps employees bridge financial gaps with access to money they’ve already earned, without debt or high-interest fees.

ZayZoon’s survey of 500 HR professionals across the U.S. found that 60% already offer earned wage access, and among them:

• 74% reported improved productivity
• 67% saw improved morale
• 53% said EWA helped with recruitment

Beyond immediate relief, EWA empowers responsible money management. With features like daily limits, flat fees, and built-in financial education, it encourages occasional, thoughtful use—helping employees avoid costly alternatives like payday loans and overdraft fees.

Perhaps most strikingly, 70% of employees said they would choose a job that offers EWA over one that doesn’t.

This benefit doesn’t just enhance employees’ financial wellness—it’s a strategic differentiator in a tight labor market that drives returns for PEO clients.

2. LIFESTYLE SPENDING ACCOUNTS (LSAS)

According to ADP, a lifestyle spending account (LSA) is “a post-tax account funded by employers that allows employees to be reimbursed for expenses that relate to their lifestyle, including financial, social, emotional and physical aspects.”

The employer decides what expenses are eligible for reimbursement and what the allowance will be.

Lifestyle spending accounts are gaining traction as an adaptable, employee-driven perk. Unlike traditional benefits with rigid categories, LSAs allow employers to allocate funds for a variety of needs from gym memberships to family activities, commuting costs, or mental wellness.

This flexibility appeals across generations, empowering employees to choose what’s most valuable to them.

ADP adds that employers can expect several benefits to employee and business performance when offering LSAs, including an increase in productivity. When employers demonstrate care for their team’s well-being, employees feel more satisfied, productive, and engaged.

This directly translates to employee retention. A Betterment at Work survey found that 74% of US employees are more likely to leave their job for one that offers better financial wellness benefits.

3. LEARNING AND DEVELOPMENT ASSISTANCE

A commitment to employee growth is one of the most impactful benefits an employer can offer. According to Gallagher’s 2025 U.S. Benefits Strategy & Benchmarking Survey, 67% of employers now offer tuition assistance.

These benefits resonate particularly strongly with younger generations facing unprecedented student debt.

48% of American workers would switch to a new job if it offered skills training opportunities.

Investing in employees’ futures—through upskilling programs, certification reimbursements, or access to educational resources—signals long-term commitment and encourages loyalty.

4. REWARDS AND RECOGNITION

While financial tools like EWA and LSAs address stability and flexibility, recognition speaks to belonging and motivation. And that’s just as vital to financial wellness as the paycheck itself.

Today, more than two-thirds of employees say they don’t feel engaged, energized, or enthusiastic about their work—a crisis that leads to costly turnover and disengagement. Research from Gallup and Workhuman shows that employees who receive regular recognition are 45% less likely to leave and five times more likely to be engaged at work.

ZayZoon’s own research reinforces this: in our survey of 2,500 employees, recognition ranked among the top four qualities of effective management.

Recognition can be tied directly to company goals and values, making it more transformational than transactional. By connecting shoutouts to specific core values (for example, “collaboration” or “innovation”), employers can reinforce behaviors that align with organizational success.

5. PERKS AND DISCOUNTS

Who doesn’t love a good deal? Providing employees with discounts on their everyday expenses can significantly boost retention.

Your workers have different needs and wants. Your perks offering should reflect that. What if you could give your workers a digital gift card that they can cash out for their favorite stores? What if they enjoyed a break on gas prices or the rising cost of groceries?

When employers offer personalized perks and discounts, employees feel seen and appreciated—it signals to them that their employer has an understanding of employees’ diverse lifestyles and preferences.

According to ADP, perks can lead to:

• Stronger talent attraction and retention
• Reduced healthcare costs
• Improved employee engagement
• Increased productivity and performance

THE NEW STANDARD: INTEGRATED FINANCIAL WELLNESS

What separates a good benefits program from a great one isn’t the number of offerings—it’s how seamlessly they work together. Financial wellbeing, mental health, physical fitness, and professional growth are all interconnected. Employees don’t experience stress in silos, so their benefits shouldn’t be siloed either.

For PEOs, the opportunity lies in simplifying access to these benefits for clients. Modern financial wellness solutions like ZayZoon’s integrate directly into payroll systems, requiring minimal administrative effort while increasing HR efficiency by 57%. In other words, the right benefits don’t just support employees—they make HR teams’ lives easier.

The workplace of the future will prioritize choice, personalization, and accessibility. By blending empathy with innovation, PEOs can help employers design benefits packages that not only attract top talent but also keep them engaged and supported for years to come.