7 Ways to support employee financial wellbeing

stress and concerns in this area, employees won’t be able to give their roles and responsibilities their full attention while at work.

We know that nearly 80% of UK employees reporting that financial stress affects their performance at work. Supporting employee financial wellbeing benefits both individuals and organisations, reducing stress, absenteeism and turnover while boosting productivity — it really is a win-win situation 

Here are seven practical strategies businesses can implement, with resources linked for further reading — but first, let’s discuss the concept of financial wellbeing and what it looks like.

Related: Check out our employee wellbeing guide

What is employee financial wellbeing?

Financial wellbeing in the workplace means helping employees feel financially secure, confident about managing their finances, and prepared for the future. What people need from employee financial wellbeing will differ depending on their personal circumstances, life stage, goals and ambitions. The goal of any financial wellbeing support should be to ensure employees feel in control of their finances and informed about how to manage them.

Financial wellbeing is usually broken down into three areas:

1. Financial literacy. How do I budget with the increase in prices? What’s the smartest way for me to cut costs? How do I improve my credit rating?)
2. Managing problem debt. We all carry some type of debt, such as a mortgage or student loan. Problem debt however means that you are unable to keep up with the repayments, so the debt becomes a burden.
3. Longer-term savings, investment and retirement. Financial wellbeing includes providing future financial security with savings, or a pension.

Strategies to support employee financial wellbeing

Below are seven methods that can significantly improve financial wellbeing:

1. Offer financial education programmes

Talented and impressive though they are (we wouldn’t employ them otherwise!) the reality is, a lot of employees lack the level of financial literacy needed to budget effectively, manage debt or plan for retirement. 

Offering resources such as workshops, webinars or online tools can make a big difference. Financial education programmes that teach budgeting, debt management and savings strategies empower employees to take control of their finances.

2. Promote awareness of state benefits

Millions of UK workers miss out on benefits they are entitled to, such as childcare subsidies. Employers can play a role by educating employees on these benefits through resources like Employee Assistance Programmes (EAPs) or partnerships with advisors.

For example, research from PAM Wellbeing highlights how proactive guidance can help workers access hundreds of pounds in monthly support. Encouraging employees to consult resources such as Citizens Advice can also increase the odds that they take advantage of government aid programmes.

3. Provide financial tools and counselling

Offering financial planning tools or one-on-one counselling can help employees tackle specific challenges. Digital platforms like financial wellness apps allow employees to assess their financial health, create budgets and plan long-term goals.

Services like counselling through an EAP also provide tailored support, allowing employees to pinpoint and address money-related stressors. A study by Mental Health UK notes that such interventions can significantly reduce anxiety and improve focus at work.

4. Normalise conversations about financial wellbeing

Ridding your culture of unhelpful stigmas can seriously help when it comes to starting helpful conversations and creating trusting bonds.

A workplace culture that supports open dialogue about money can really empower employees to seek help at a time when they really need it — and hopefully before situations get too bad. Managers should receive training to handle sensitive financial discussions empathetically.

Normalising these conversations can encourage employees to share their challenges and use available resources.

5. Offer tailored financial support

Financial struggles vary greatly among employees. What benefits a recent university graduate may differ from what a parent or nearing-retirement employee needs. Offering customised financial support, such as salary advance schemes, childcare subsidies or travel loans ensures initiatives remain relevant and helpful.

These targeted programmes are particularly valuable during economic uncertainty — and we’ve seen a lot of that in the UK over recent years.

6. Encourage mindful financial planning

Uncertainty often fuels financial stress. Employers can help by promoting tools like budget planners or offering sessions with financial coaches to assist employees in assessing their income, expenses and savings goals.

Encouraging employees to focus on what they can control — such as eliminating unnecessary expenses or setting up a savings buffer — can reduce stress and build resilience. For practical tools and advice, you can refer employees to MoneyHelper’s budgeting resources.

7. Create equitable workplace policies

Financial wellbeing initiatives should also include addressing systemic barriers to financial stability. This can mean reviewing salary structures for fairness, providing a living wage or ensuring flexible working options for employees balancing family commitments.

Equitable policies not only alleviate financial stress but also improve employee morale and employee retention.

Employee financial wellbeing matters — it’s time to step up

The cost of poor financial wellbeing is significant. UK businesses lose over £10 billion annually to absenteeism related to financial stress, according to recent studies. Prioritising employee financial wellbeing reduces this impact while enhancing productivity, engagement and loyalty.

By implementing these strategies, businesses can start to build and nurture a truly supportive company culture that addresses employees’ financial concerns and contributes to overall organisational success.

If you’re looking to monitor and improve wellbeing generally within your organisation, get in touch today for a staff wellbeing survey. We’ll help you get to grips with the state of mind of your employees and help you figure out actionable steps to improve the employee experience.