Financial pressure remains a daily reality for many households across the country. Recent findings show that the cost-of-living crisis continues to dominate public anxiety, with over half of the UK naming it as their biggest concern.
As financial security affects a growing proportion of the population, its consequences are increasingly evident at work. Almost one in four employees report that financial anxiety is undermining their performance, while 19% say it has driven them to take time off. From an employer perspective, the issue is just as visible: two-thirds of HR professionals say employees under financial strain show lower productivity and confidence.
While this situation has been building for some time, organisational responses have evolved. At the outset of the crisis, many employers relied on salary increases and one-off payments to ease pressure. However, escalating employment costs have since reversed that trend, with median pay now down by 1.5% since 2024.
HR teams recognise that strengthening employees’ financial resilience is critical, yet many are constrained by limited budgets and flexibility. Our new guide highlights why cost‑efficiency + wellbeing = resilience should now be the compass for HR leaders, showing how smart, cost‑effective benefits can stretch salaries, generate savings and enable organisations to support employees without increasing overheads.
This is the year HR teams move beyond short‑term fixes and implement a sustainable framework, one that delivers meaningful, long‑term financial wellbeing in ways that are both impactful for employees and genuinely viable for the organisation.
Unpacking employee financial stress
Financial stress is often hidden, but its effects are tangible. Employees carrying the weight of managing increasing bills, deadlines and constant financial decisions may seem to be coping, yet their focus, energy, and motivation are quietly slipping.
As people continue to attend meetings and deliver on deadlines, the early warning signs often go unnoticed by HR teams. Meanwhile, pressure builds beneath the surface, affecting performance and engagement well before it appears in absence data or formal evaluations.
Taking control of finances
A significant proportion of employees (41%) feel their benefits packages don’t reflect their individual needs, raising urgent questions about whether current investment is delivering real value. Addressing this gap is essential to ensure benefits spend is both effective and impactful.
The focus now must shift toward strengthening financial resilience across the entire workforce, with support that extends beyond one-off cash incentives and is accessible at every salary level. Financial wellbeing should be reframed as a mix of practical education, day-to-day management and long-term planning, working together to support lasting financial security.
Achieving this level of resilience calls for a benefits strategy that not only supports wellbeing but actively helps employees reduce costs and build long-term financial stability. The right benefits package can give employees the knowledge, confidence and stability they need to take control of their finances – driving meaningful savings while strengthening their overall wellbeing. This could include:
- Access to professional advice – Less than 9% of UK adults received professional financial advice in the past year, and nearly one in four have no emergency savings. HR leaders can help close this gap by offering practical budgeting and money-management support, either through online resources or expert-led workshops and by providing access to personalised financial planning advice to strengthen employees’ financial security.
- Salary deduction for essential spending - These schemes provide employees with a transparent, interest-free way to pay for essential items, allowing them to manage costs while maintaining full control over repayment schedules.
- Salary‑linked financial support or credit options - Employer-managed loan consolidation programmes give employees a structured path to reduce debt. Alongside this, organisations can set up savings schemes that automatically deduct funds from employees’ paychecks, enabling them to build emergency savings or plan for future goals.
The business case for financial resilience
Our research shows that employees are more likely to stay with an organisation when their financial wellbeing is actively supported through benefits and incentives. Prioritising financial wellbeing not only strengthens your team but also drives business success. Benefits that enhance financial security are vital for attracting and retaining top talent, as employees who feel financially stable tend to be more motivated and engaged.
Financially resilient employees experience less stress, greater motivation and stronger loyalty. Without financial worries at work, they can concentrate fully on their roles, boosting productivity and engagement.
A sustainable blueprint
Supporting employee financial wellbeing doesn’t come down to a single initiative or benefit. It starts with building a culture of trust, where employees feel comfortable being open about financial pressures without fear of judgment. That openness allows employers to identify real needs and design a sustainable blueprint that is financially realistic.
When organisations approach this through the lens of cost‑efficiency + wellbeing = resilience, it becomes clear that meaningful support doesn’t have to come at the expense of financial practicality.
When done well, financial resilience goes beyond short-term relief. It becomes a long-term foundation that enables employees to stay engaged and productive, strengthening both individual performance and organisational success over time.
