Breaking the Paycheck-to-Paycheck Cycle: How to Leverage the Right Financial Wellness Benefits

BY Stephanie Reed | August 06, 2025

Financial stress is quietly draining the American workforce. A survey found that 85% of workers reported experiencing financial stress, and 44% of respondents experienced a decrease in their productivity because of anxiety about finances.

The cumulative impact is staggering: financial anxiety is costing U.S. companies up to $183 billion a year, with workers losing an average of seven hours of productivity each week.

During a thought leadership spotlight at From Day One’s July virtual conference, DailyPay leaders, Dar Miranda, VP of customer engagement and advocacy and David Schwarz, head of corporate communications spoke about breaking the paycheck-to-paycheck cycle. 

Prioritizing an Employee-Centric Pay Model

A lack of sufficient funds is only part of the problem. “It's also about the timing gap between continuous expenses and infrequent paychecks,” said Miranda. 

“This creates an immense financial risk, right, which could lead to late fees, overdraft penalties, and the rising cost from high-interest debt.” Thus, organizations should seek financial wellness benefits that compensate for the debilitating reality of living paycheck-to-paycheck.

Dar Miranda, the VP of customer engagement and advocacy at DailyPay, spoke during the session (company photo)

One solution, Miranda says, is offering On-Demand Pay. Giving employees access to their earned wages when they need them helps bridge the gap between everyday expenses and biweekly or monthly paychecks.

A 401(k) alone doesn’t cut it anymore when it comes to financial wellness, says Schwarz. Accordingly, DailyPay reports clients using their On-Demand Pay app as a financial dashboard. Employees can review their income to budget and proactively schedule shifts.

This level of direct oversight is a key advantage. It empowers employees to better understand their finances and make smarter budgeting decisions. When workers can clearly track their earnings, they feel more in control, which also supports retention. It also shifts the mindset around financial challenges from reactive crisis management to a more proactive approach grounded in financial literacy and long-term planning.

Yet, while a long-term financial management strategy is ideal, it’s important to acknowledge that many workers don’t have that privilege. For instance, relying on a 401(k) alone may not be realistic for employees who are focused on meeting immediate needs.

DailyPay offers various everyday savings tools such as for international remittances to help workers save wherever possible. The results: 60% of DailyPay users have seen a reduction of feeling financial stress, and 49% are feeling more motivated to work, says Miranda. “Workers who report being more in control over their finances and even able to save are significantly more likely to love their jobs,” Miranda said. 

“So for employers, this means that investing in financial wellness isn’t just about being a good corporate citizen. It’s a strategic imperative,” she said.  

Addressing Paycheck-to-Paycheck Expenses 

Many Americans must contend with a reality where their income isn’t keeping up with inflation and increasing interest rates. More than 80% of people have less than $500 for emergencies, according to recent research. 

The costs of groceries, gas, healthcare, and family care amount to an entire paycheck for many workers. “We did research that nine out of 10 of our users say gas prices are too high, and over half of our users have missed a day of work because gas prices are too high,” Schwarz said. These expenses amount to many Americans spending more than their income, leading to little to no savings for emergencies. 

DailyPay uses both internal and external research to understand the daily financial challenges its users face, which informs the development of its perks app. Features like real-time cash rewards help keep employees motivated. The company is forming a partnership to offer gas discounts to clients, directly addressing one of the rising costs that continues to put pressure on American workers, says Schwarz. 

Clients have seen a 21% drop in turnover, a result that speaks for itself. Giving employees full access to their earned wages helps break the paycheck-to-paycheck cycle and offers support during financial emergencies, says Schwarz.

“The goal here is to empower employees, not just to access money, but to master their finances. And that’s not always what you think about when you think about on-demand pay–but that’s the reality.”

Editor's note: From Day One thanks our partner, DailyPay, for sponsoring this thought leadership spotlight.

Stephanie Reed is a freelance news, marketing, and content writer. Much of her work features small business owners throughout diverse industries. She is passionate about promoting small, ethical, and eco-conscious businesses.

(Photo by Hispanolistic/iStock)

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Why Employers Are Taking a Personalized Approach to Financial Wellness

Benefits leaders increasingly recognize that financial wellness benefits are just as essential to employee compensation as health insurance and retirement plans. With 73% of Americans saying they are financially stressed, it’s easy to see why financial wellness is taking center stage. But that presents a broad challenge for HR leaders. How do you offer a wide range of financial wellness benefits, then customize those offerings to fit the specific needs of individual employees who range from C-suite executives to entry-level new hires?The best strategy? Make it personal, says Erin Donahue, CFP®, CPA/PFS, CMA, CGMA, and director of advice strategy at Northstar. Northstar’s financial wellness program provides individualized guidance to employees of every level to help them better utilize their total compensation package and make financial decisions. From Day One spoke with Donahue about how HR leaders can personalize financial wellness benefits to fit the needs of all employees. “We’ve found that matching employees at every level with one of our Certified Financial Planners can be the best way to build trust and offer solutions,” Donahue said.  An advisor can answer specific compensation and benefits questions, look at an employee’s overall financial picture, assist with any problems and help set and achieve financial goals. These are all things most benefits managers simply aren’t equipped to do.“Say someone comes in with a question about their employer’s student loan benefit. The person isn’t sure if they should be using it or not,” Donahue said. The employee would be matched with a Northstar Advisor who has been trained on their benefits and would answer that specific question and assist the employee in signing up for any appropriate benefits.From Day One spoke with Erin Donahue, CFP®, CPA/PFS, CMA, CGMA, the director of advice strategy at Northstar (company photo)But the relationship doesn’t end there. The advisor would continue to work with the employee on an ongoing basis. The student loan question would likely lead to more talks about the employee’s finances, including challenges and goals well beyond paying off college debt, says Donahue. Budgeting, managing debt and building healthy money habits are all part of the financial foundations covered in Northstar’s personalized financial wellness program.What’s more, the CFP®, who is not on commission of any type and has a fiduciary duty to the employee, is free to recommend solutions outside of the employer’s benefit package, building trust and alleviating financial stress in a more holistic way. In many cases, employee financial goals can be directly supported by taking advantage of employer benefits. The CFP® is well-versed in what the company offers and can make recommendations that are personally relevant, making it much more likely the employee will sign up,” Donahue said. Once an employee is matched with an advisor, they work together for as long as desired on any number of financial concerns. This personal approach can pay off for both employees and employers. After meeting with a Northstar Advisor, 94% of employees report an increase in their financial confidence and 85% report a reduction in their financial stress. Importantly, 69% of employees took action on advisor recommendations and 63% followed benefit-specific advice, reports Northstar. Out-of-the-Box SolutionsWhen there’s a personal relationship, financial advisors can help employees make the most of their benefits in surprising ways. Donahue points to an example of one employee who was looking to buy a house in the next year or so. The employee has free cash flow that he can use to save for the down payment and he’s also eligible for his company’s stock purchase plan.  “Stock purchase plans can be a little bit invisible,” says Donahue. “People think, ‘Oh, that’s for high-level executives and long-term investing, it can’t help me meet short term goals.’” But in this case, the Northstar Advisor was able to point out that if the employee enrolls in his stock purchase plan, assuming the plan offers shares at the standard 15% discount, in a year’s time he’ll likely have a return on his house savings much higher than he would get in any high-yield savings account. Northstar’s program integrates benefits, equity, and rewards to help employees maximize their total compensation to achieve their financial goals, such as buying a home, says Donahue. Or take the case of a highly compensated employee who’s living paycheck to paycheck. “It happens more than you think,” said Donahue, emphasizing that life events can hit all at once—kids’ tuition, caring for an elderly parent, inflationary cost increases on vital expenses such as insurance—stretching relatively big paychecks to the max. That creates a feeling of financial insecurity and an inability to save for emergencies and the future. In these cases, Northstar Advisors can help employees return to budgeting basics and help find ways to reduce expenses. Recently Donahue’s team worked with a couple to help them move from Los Angeles to Atlanta to reduce living expenses and increase savings. For both early career employees and high earners, advisors offer their knowledge to  help employees maximize compensation, whether through budgeting and saving changes or guidance around investing and tax optimization.Global MobilityHR leaders have also learned that comprehensive financial wellness benefits need to span the globe. Often benefit managers seek out specific vendors to offer international relocation, tax and investment advice. But at Northstar, global mobility support is integrated into the program and is made possible by Northstar’s team of global financial advisors.International employees, both relocated Americans and foreign nationals, need the same personalized approach on complex matters, Donahue says. “Often these employees might not know all the questions they need to ask,” she said. For instance, an employee moving to France for a short stint would likely need to learn how to continue retirement savings and other investing in the U.S. while understanding the tax implications and other compliance issues. But, if the same employee were joining family abroad and planning on a permanent move, they would need help navigating France’s pension and investment systems and determining if and when to move their U.S.-based assets to France. In each case, employees need to know how to protect their assets and stay compliant, but under very different circumstances, Donahue says.Two-Way CommunicationA personalized, one-on-one approach doesn’t just serve employees. It often provides the vital information benefit managers need to better understand their workforce. Northstar aggregates and shares the common topics employees are asking about and provides insights on what they need to feel better about their finances. Often this information can be more honest and accurate than employer-sponsored financial wellness surveys, simply because employees are more detailed and often more honest with their financial advisor than they might be answering a questionnaire. This kind of feedback can be especially effective when HR leaders consider and launch new benefits. In addition, the advisor connection can help employers increase adoption of underutilized benefits. Employees have an objective, professional partner that can explain what benefits are available and how to best use them. “We want to reduce the headaches low-utilization rates can cause HR pros,” said Donahue.The bottom line: When workforce members get the comprehensive, sophisticated, and personalized advice they need, they’re likely to feel more financially secure, make the most of their employer-provided benefits, meet their financial goals, and feel set up for success at work. “It’s a win-win for everyone,” Donahue said.Editor’s note: From Day One thanks our partner, Northstar, for supporting this sponsor spotlight. Walecia Konrad is an award-winning financial journalist, specializing in the topics of health care, personal finance, and employer-sponsored benefits. Her work has been seen on sites such as CBS MoneyWatch, The New York Times, Money, SmartMoney, BusinessWeek, and Forbes. She has been the recipient of both a Pearl Award for Best Web Publication of the Year and a National Magazine Award for Personal Service.(Featured photo by RichVintage/iStock by Getty Images)

Walecia Konrad August 04, 2025

Healthy Workers Are Good for Business, But Everyone Has Unique Needs

For generations, workplace benefits referred to just the basics: health insurance, vacation days, and, if you were lucky, a retirement savings fund. But in today’s parlance, “benefits” refers to a broader lifestyle package that is far more holistic and personalized. “Back in the early days, benefits were just the thing that employers had. But as employers started competing more for talent, wellness became more of [an] imperative,” said Jennifer Dietrich, SVP, head of global benefits and wellness at Fiserv. Dietrich spoke during a fireside chat at From Day One’s July virtual conference, moderated by Nicole Smith, editorial audience director at Harvard Business Review. “It became part of the culture of our organization. Now, we’re using wellness to help to keep our people healthy, which then allows them to bring their best self to work and their best self to their communities. It does create this culture and environment where people feel cared for, and they want to come and work for you,” said Dietrich. The last five years have been a time of rapid social and cultural change, says Smith. From the global pandemic and “the fastest recession and recovery in U.S. history,” to a housing supply crisis, rising mental health concerns, a presidential election, trade war, and more. These “external shocks” can impact the personal and professional needs of the workforce, and employers must be prepared to respond quickly. Nicole Smith, editorial audience director at Harvard Business Review, interviewed Jennifer Dietrich, SVP, global benefits and wellness at Fiserv  (photo by From Day One)“We’ve seen this interesting shift in people’s expectations, because the pandemic created a different scope of what’s possible for employees, and even for some employers,” Dietrich said. She encourages organizations to be more “human” in the approach to work structures and benefits programs. “If you’ve got the right culture [and] you’ve got the right programs, people can be the best version of themselves. That’s not just important in work, but in all aspects of their lives and in their community,” she said. This culture of support should be ingrained in all management training, ensuring that leaders understand the benefits programs available so they can direct their team in the right direction when the time comes. In response to evolving employee expectations, Fiserv introduced a remote flexibility benefit, enabling its 38,000 associates across 35 countries to work from nearly anywhere in the world for a set number of days each year, despite being an in-office company. Building a Benefits Program That Works for AllWith such a large and diverse workforce, it can be challenging to create a benefits package that offers personalization while still appealing to a broad audience. “People value choice. And the definition of benefits can vary from one person to the next,” Dietrich said, saying some people are satisfied simply by free coffee in the office, while others might focus more on career development. “Doing the right thing for your people and for the business isn’t necessarily supposed to be easy.”Fiserv relies on annual engagement survey data and feedback from its employees to build a comprehensive package on top of the basics, like healthcare, retirement, disability, and PTO. “Information is power,” Smith said. Since employee needs may be constantly shifting, organizations should be checking in with them regularly to gauge their thoughts on vendors. Dietrich recommends treating vendors as true partners, an extension of your team, equally invested in analyzing data and enhancing the employee experience.But balance matters, as workers can become paralyzed by too many choices. 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Dietrich foresees that AI will also ultimately be able to assist in this process.Looking Ahead in the Benefits SpaceAs Dietrich’s organization looks to the future, it hopes to cultivate the next generation of workers, in part, through benefits offerings. “We focus on having what we consider a best-in-class people platform that focuses on driving a high-performance culture and continuous improvement within the organization.” That means investing in ongoing professional development, growth opportunities, increasing engagement, fostering trust among colleagues, and promoting in-office connection. The latter is especially important for Gen Z, as many of them spent crucial educational and developmental years behind a screen during Covid. “We stress [casual, organic in-person] connections for all of our associates, because that helps them feel connected and valued and seen when they are at work,” she said. Smith agreed, “You can’t replace human connection.” That human connection is not only integral to keeping employees engaged with the workplace; it’s also crucial to building a benefits package overall. Leaders, Dietrich says, are the ones who help drive the use of benefits, gauge whether the offerings are working, and best articulate to stakeholders what has been most effective—and what is most deserving of future investment. “When you can come back and tell the story that this worked out the way that we expected it to, it helps to build your credibility with leaders, so that you can get more yeses to things like that to do more for your people.”Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. 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Student Debt Is Back: A New Mandate for Total Rewards Leaders

With college tuition up over 1200% since 1980 and dramatically outpacing inflation rates, the U.S. is in the midst of a student debt crisis. More than 42 million Americans carry a combined $1.7 trillion in student loan debt, forcing many to delay key life milestones such as buying a home, saving for retirement, and starting a family.In just the last five years, the government has launched and revoked various programs to ease the burden of student debt holders through payment pauses, reduced interest, and potential forgiveness opportunities. With the new administration’s enforcement of the payment on-ramp end date and elimination of popular repayment plans, student borrowers now face new barriers to reconciling their debt.“Ninety percent of borrowers [experience] heightened anxiety because of their [student loan] debt,” said Jon Harold, SoFi at Work’s head of sales and partnership success. Harold led a thought leadership spotlight on the subject during From Day One’s July virtual conference.According to a 2024 benefits survey, employees with student debt are more concerned about it than other expenses like food, healthcare, housing, and transportation costs. This anxiety can impact workforce productivity, engagement, and retention, Harold says. “Fifty-six percent of employees spend three or more hours per week at work thinking about their finances,” he said.There is some good news, he says. Section 127, an educational assistance program that allows employers to offer tax-free tuition reimbursement contributions up to $5,250, was expanded to include student debt payments, and the reconciliation bill recently passed by Congress extends that program permanently. Additionally, the SECURE 2.0 Act passed in 2022 allows employers to match student debt payments as if they were retirement contributions and deposits that match into the employee’s retirement account, says Harold. Jon Harold, SoFi at Work’s head of sales and partnership success, shared stats and insights on the subject (company photo)To attract top talent and drive retention, many employers have started offering these types of programs as a part of their benefits package. With 62% of private-sector employees stating that student debt influences their employment decision-making, and “36% of employees with student debt less likely to remain with their employer than those without debt,” said Harold, “we’re seeing it become table stakes for many new employees out of college.” What are these companies doing, and how? Harold says that they are taking advantage of not only the government-enabled structured support programs, but launching their own direct-contribution programs and partnering with companies like SoFi at Work to offer education, advice, and alternative payment options.WTW found that 42% of employers are considering participation in retirement match contributions enabled by the SECURE 2.0 Act to help employees tackle their student debt while still contributing to retirement savings. And a study conducted by the Employee Benefit Research Institute (EBRI) showed that 34% of companies offer some kind of direct-contribution model to help offset employee student debt. Employers can customize these models based on multiple factors, including budget, frequency, and employee eligibility, says Harold.Since 86% of employees say they would stay with an employer for five or more years if the company helps with student loan debt, per a 2017 American Student Assistance survey, Harold says that a tiered program that increases contributions over time can also strengthen loyalty and boost retention. One of SoFi’s healthcare clients created a monthly direct-contribution program and saw a 21% increase in therapist retention within six months of its launch. Due to the uncertainty around student debt repayment plans and credit impacts, SoFi has seen a high demand for webinars, guides, and personalized advice. People are confused about what payment or refinancing options are available. “We did a webinar in June of this year where the head of our financial planning team talked about [the] changes, and it was a record webinar for SoFi. 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Offering student loan benefits will give employers a strategic advantage in the talent marketplace, and SoFi is ready to share their decades of experience to help companies make the best decision for their workforce.Editor’s note: From Day One thanks our partner,  SoFi at Work, for sponsoring this thought leadership spotlight. Jessica Swenson is a freelance writer based in the Midwest. Learn more about her at jmswensonllc.com.(Photo by Terminator3D/iStock)

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