From stress to success: six steps to supporting employee financial wellbeing

Money worries don’t clock out when employees clock in.

With high living costs and ongoing economic uncertainty, financial stress is now a workplace issue – not just a personal one. Employees distracted by financial concerns are more likely to experience lower productivity, absenteeism and even long-term health impacts.

The numbers speak for themselves. Research by Unum found that 40% of UK employees feel physically tired or have low energy from worrying about financial pressures. When financial stress takes a toll on wellbeing, business performance suffers too.

But there’s good news – proactive financial wellbeing initiatives can make a real difference. Businesses that integrate financial support into their employee benefits strategy see higher engagement, improved retention and a more resilient workforce.

Here we outline six key steps to help employers embed financial wellbeing into their workplace culture, ensuring employees feel supported, empowered and better equipped to navigate their financial futures.

1. Recognising the business impact of financial wellbeing

Financial stress isn’t just a personal issue – it also affects workplace performance.

Employees struggling with money worries are more likely to be distracted, take more time off or even look for a new job.

Research shows that financial stress contributes to both absenteeism and presenteeism (being at work but not fully functioning), reducing productivity across the business.

By embedding financial wellbeing into their wider benefits strategy, employers can boost engagement, improve job satisfaction and create a more loyal, resilient workforce.

Supporting financial wellbeing isn’t just the right thing to do – it’s a smart business decision.

2. Providing financial education and support

A well-rounded financial wellbeing programme should provide employees with the knowledge and tools to manage their finances effectively.

Tailored financial education programmes, including workshops, webinars and one-on-one financial coaching sessions, can help employees gain confidence in their financial decisions, with topics covering everything from budgeting and debt management to savings strategies and retirement planning.

Access to digital budgeting tools and financial planning platforms can also help employees take control of their finances.

Many financial services companies offer user-friendly apps that help employees track spending, set savings goals and plan for future financial commitments.

3. Offering practical financial benefits

Employers can introduce salary sacrifice schemes, such as pension contributions, cycle-to-work schemes and technology loans, which allow employees to purchase essential devices such as laptops, smartphones or tablets.

These enable employees to make cost-effective purchases while reducing their taxable income. Additionally, workplace savings schemes, including payroll-deducted savings accounts, can help employees build financial resilience over time.

Employee Assistance Programmes (EAPs), which often includes financial counselling services, offer another valuable support mechanism. These provide confidential guidance on managing debt, navigating financial hardship and planning for the future.

Ensuring that EAP providers offer robust financial support options can make a significant difference in helping employees regain financial stability.

4. Addressing long-term financial security and the gender pensions gap

Financial wellbeing extends beyond short-term stability to support long-term financial security.

A critical aspect of this is pensions awareness and, notably, helping to address the gender pensions gap. Women, on average, retire with significantly lower pension pots than men, creating long-term financial disparities.

Employers can help bridge this gap by offering enhanced pension contributions for employees on parental leave, providing financial education tailored to women and encouraging salary negotiations to help close the gender pay gap.

Financial wellbeing initiatives should be inclusive, taking account of the specific barriers different employee groups may face when saving for retirement.

5. The role of leadership in driving financial wellbeing

Financial wellbeing starts with leadership. When business leaders actively promote financial wellbeing, they create an open culture where employees feel supported, reducing stigma and encouraging proactive engagement with available resources.

Senior managers play a vital role in shaping a workplace culture that prioritises financial wellbeing and fostering an environment where employees feel supported and empowered to manage their finances more effectively.

They can make a difference by communicating openly about financial wellbeing initiatives, ensuring employees are aware of the support available and feel encouraged to use it.

Helpful resources should be shared and conversations about money normalised to reduce stigma.

Managers should also be trained to recognise signs of financial stress and provide empathetic guidance.

6. Measuring the impact of financial wellbeing initiatives

Last, but by no means least, to ensure a financial wellbeing strategy is effective, it is important to measure its impact.

Employers can track metrics from employee engagement and satisfaction scores, absenteeism and turnover rates to uptake of financial wellbeing benefits and programmes and feedback from employees.

Regularly reviewing these metrics will help refine the approach and ensure initiatives are meeting workforce needs.

Looking ahead: the future of workplace financial wellbeing

Financial wellbeing is no longer a ‘nice-to-have’, it is a fundamental pillar of employee wellbeing with direct implications for business success.

As awareness grows, organisations that act now will be ahead of the curve, cultivating a workforce that is more engaged and productive.

Proactively addressing challenges such as the gender pensions gap not only strengthens financial resilience but also reinforces a company’s commitment to equality and inclusivity.

The conversation around financial wellbeing is evolving, with greater emphasis on inclusivity and long-term security. Employers that integrate financial wellbeing into their benefits strategy – not just as a perk, but as a core part of their culture – will be best positioned for long-term success.