Essential Benefits: A New North Star for Wage and Benefit Design

Each year, employers in the U.S. pour trillions of dollars into employee wages and benefits, some offering more than 50 benefits to attract and retain talent.^{1, 2} Yet despite these options, the vast majority of workers are still struggling financially – compromising their job performance, satisfaction, and intent to stay with their employers.^{3, 4, 5}

Traditional approaches often rely on market surveys or peer benchmarks. But these tools don’t answer a critical question: Which wage and benefit practices actually improve financial health? 

This report uses nationally representative survey data to examine the connection between wages, benefits, and household financial health. The findings offer a new, first-of-its-kind framework to guide employers, benefit providers, and policymakers in designing strategies that support worker well-being and business success.

The relationship between Essential Benefits and Financial Health Score

Numbers in this chart represent the coefficients of each benefit in a multivariate regression model. Please see the appendix in our report for more details on our methodology and results. *Loan products include small dollar loans, personal loans, or mortgages.

This report leveraged multiple data sources and analytical methods to advance the knowledge base about wages, benefit access and use, and how compensation intersects with employee financial health. The Financial Health Network surveyed a nationally representative sample of workers (defined as U.S. adults aged 18 and older working full- or part-time), drawn from a probability-based online panel. Data was collected from January 27 to February 24, 2025. 

For more details on our research methodology, please see the full report. 

This report is made possible through the financial support of JPMorganChase. The Financial Health Network conducted this research to illuminate new ways to drive employee financial health. The insights and opinions expressed in this report are those of the Financial Health Network and do not necessarily represent the views or opinions of our partners, funders, and supporters.