Why Millennials and Gen Z Demand Financial Wellness Benefits in 2025

Key Takeaways

• Millennials and Gen Z are driving a major shift in workplace expectations, demanding financial wellness benefits from Canadian employers.
• Rising living costs, student debt, and economic uncertainty are fueling financial stress among young Canadians.
• Financial wellness programs—like paycheque advances, flexible pay, and financial education—are now essential for attracting and retaining top talent.
• Companies offering these benefits see lower turnover, higher productivity, and improved employee satisfaction.
• Swift Wellness provides a practical, tech-driven solution for employers to support their teams’ financial health.

Introduction

The Canadian workforce is changing fast. Millennials and Gen Z now make up the majority of employees, and they’re not shy about what they want from their employers. For these generations, a steady paycheque isn’t enough—they expect real support for their financial well-being.

Financial stress is at an all-time high for young Canadians. With rising rent, record student debt, and economic uncertainty, many are living paycheque to paycheque. This stress doesn’t just affect their wallets—it impacts their mental health, productivity, and loyalty to their employers.

In this article, we’ll explore why Millennials and Gen Z are demanding financial wellness benefits, what they expect from Canadian employers, and how companies can respond to stay competitive in 2025 and beyond.

Why Financial Wellness Matters to Millennials and Gen Z

The Financial Realities Facing Young Canadians

1. Rising Cost of Living and Student Debt

It’s no secret that living costs in Canada have soared in recent years. In 2024, the average rent for a one-bedroom apartment in Toronto hit 2,600permonth,whileVancouverisn’tfarbehindat2,600permonth,whileVancouverisn’tfarbehindat2,500. Groceries, transportation, and utilities have all seen double-digit increases since the pandemic.

But it’s not just rent. Student debt is a massive burden for young Canadians. According to Statistics Canada, the average student graduates with over $28,000 in debt. Many Millennials and Gen Z workers are juggling loan payments, high rent, and everyday expenses—all while trying to save for the future.

2. Economic Uncertainty and Job Insecurity

The pandemic changed the job market forever. Many young Canadians work in contract, part-time, or gig roles with little job security. Even full-time positions can feel unstable, with layoffs and hiring freezes making headlines across the country.

A 2024 survey by the Canadian Payroll Association found that 48% of Gen Z workers worry about losing their job in the next year. This uncertainty makes it even harder to plan for the future or handle unexpected expenses.

3. Mental Health and Financial Stress

Money worries aren’t just a financial issue—they’re a mental health crisis. According to CPA Canada, 72% of Gen Z and 68% of Millennials say money is their top source of stress. This stress leads to anxiety, sleep problems, and even depression.

Financial stress doesn’t stay at home. It follows employees to work, affecting focus, productivity, and engagement. In fact, Benefits Canada reports that financially stressed employees are twice as likely to miss work or be less productive.

What Millennials and Gen Z Expect from Employers

Shifting Workplace Expectations

1. Beyond Traditional Benefits

For previous generations, health insurance and a pension plan were enough. Not anymore. Millennials and Gen Z want benefits that address their real, everyday challenges—especially financial ones.

Here’s what they’re looking for:

• Paycheque advances: Access to earned wages before payday to cover emergencies.
• Flexible pay schedules: The ability to choose when they get paid.
• Financial education: Workshops, webinars, or apps that teach budgeting, investing, and debt management.
• Emergency savings support: Programs that help employees build a financial safety net.

2. Demand for Transparency and Support

Young Canadians value transparency and open communication. They want to know their employer cares about their well-being—not just their output. Companies that offer financial wellness programs send a clear message: “We’re invested in your future.”

Real Canadian Example:
A Toronto-based tech company introduced a paycheque advance program in 2023. Within six months, employee satisfaction scores rose by 18%, and turnover dropped by 22%. Employees reported feeling “less anxious” and “more valued” by their employer.

3. The Role of Technology

Millennials and Gen Z are digital natives. They expect benefits to be accessible, mobile-friendly, and easy to use. Whether it’s checking their pay balance, requesting an advance, or joining a financial literacy webinar, they want everything at their fingertips.

Pro Tip:
Mobile-first solutions like Swift Wellness make it easy for employees to access financial support anytime, anywhere.

The Business Case: Why Financial Wellness Benefits Matter for Employers

The ROI of Financial Wellness Programs

• Reduced Turnover and Absenteeism

Turnover is expensive. According to the Conference Board of Canada, replacing a single employee can cost up to 20% of their annual salary. For high-turnover industries like retail, hospitality, and healthcare, these costs add up fast.

A 2024 Benefits Canada survey found that 60% of Millennials and Gen Z would switch jobs for better financial wellness benefits. Companies that offer these programs see lower turnover and fewer sick days.

• Increased Productivity and Engagement

Financially stressed employees are less focused and more likely to make mistakes. But when employees feel supported, they’re more engaged and productive.

Case Study:
A national retailer introduced a paycheque advance program in 2023. Over the next year, they saw a 30% drop in turnover and a 15% increase in productivity. Employees reported feeling “more in control” of their finances and “more loyal” to the company.

• Attracting Top Talent in a Competitive Market

The war for talent is real—especially in Canada’s tight labour market. Offering financial wellness benefits gives employers a competitive edge.

Companies With vs. Without Financial Wellness Benefits

Source: Benefits Canada, 2024

Actionable Tips: How Canadian Employers Can Support Financial Wellness

Practical Steps for Employers

Ready to support your team’s financial health? Here’s how to get started:

• Offer paycheque advance solutions:
  Give employees access to their earned wages before payday. Swift Wellness makes this easy, secure, and compliant with Canadian regulations.
• Provide financial education:
  Host workshops or partner with financial literacy organizations. Cover topics like budgeting, debt management, and investing.
• Enable flexible pay schedules:
  Let employees choose when they get paid—weekly, bi-weekly, or even on-demand.
• Promote mental health resources:
  Financial stress and mental health are linked. Offer access to counselling, stress management tools, and employee assistance programs.
• Survey your employees:
  Ask your team what financial challenges they face and what benefits would help most. Use anonymous surveys to gather honest feedback.

Step-by-Step: Implementing a Financial Wellness Program

1. Assess your current benefits:
   Review what you offer and identify gaps in financial support.
2. Talk to your employees:
   Use surveys or focus groups to understand their needs.
3. Research solutions:
   Compare providers like Swift Wellness for paycheque advances, financial education, and more.
4. Pilot a program:
   Start small—offer a paycheque advance to one department and measure the impact.
5. Gather feedback and adjust:
   Ask employees for feedback and make improvements.
6. Promote your program:
   Communicate clearly about new benefits and how to access them.
7. Measure results:
   Track turnover, satisfaction, and productivity to see the ROI.

Real Canadian Scenarios: Financial Wellness in Action

Example 1: Retail Success Story

A major Canadian retailer with over 2,000 employees launched a paycheque advance program in 2023. Within the first year:

• Turnover dropped from 25% to 14%
• Employee satisfaction scores rose by 20%
• 70% of employees used the advance at least once, mostly for rent, groceries, or unexpected bills

Example 2: Tech Company Boosts Retention

A Vancouver-based tech startup offered financial education webinars and flexible pay. Results after six months:

• 90% participation in webinars
• 30% of employees switched to weekly pay
• Retention improved by 18%

Example 3: Healthcare Provider Reduces Absenteeism

A Toronto hospital introduced emergency savings support and mental health resources. After one year:

• Absenteeism dropped by 12%
• Staff reported feeling “more secure” and “less stressed”

Frequently Asked Questions

Q: What is a paycheque advance?
A: A paycheque advance lets employees access a portion of their earned wages before payday, helping them cover unexpected expenses without resorting to high-interest loans.

Q: Are financial wellness benefits expensive for employers?
A: Many solutions, like Swift Wellness, are affordable and can be customized to fit your budget. The ROI from reduced turnover and increased productivity often outweighs the cost.

Q: How do I know what my employees need?
A: Survey your team regularly and encourage open feedback. Every workplace is different, so tailor your benefits to your employees’ real needs.

Common Pitfalls to Avoid

• Ignoring employee feedback:
  Don’t assume you know what your team needs—ask them directly.
• Overcomplicating the process:
  Choose simple, user-friendly solutions that integrate with your existing payroll.
• Failing to communicate:
  Make sure employees know about new benefits and how to use them.
• Neglecting mental health:
  Financial wellness and mental health go hand-in-hand. Address both.

Conclusion & Next Steps

Millennials and Gen Z are clear: financial wellness benefits are no longer optional—they’re essential. Canadian employers who invest in these programs see lower turnover, higher productivity, and happier teams.

Ready to support your employees’ financial health? Start by assessing your current benefits, talking to your team, and exploring solutions like Swift Wellness. With the right support, you’ll attract and retain top talent—and build a stronger, more resilient workplace.

Learn more about how Swift Wellness can help your company offer paycheque advances and boost retention. Contact us today!