Employee Financial Wellbeing
- 1 day ago
- 7 min read
10 ways to support the financial wellbeing of your workforce
What is employee financial wellbeing and why does it matter?
Financial wellbeing relates to an employee's ability to manage their money effectively in the short and long term. It is about how confident and in control they feel about their finances on a day-to-day basis.
“(…) financial wellbeing is about feeling secure and in control. It’s about making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future. In short: financially resilient, confident and empowered.”
In recent years, financial wellbeing has surged in importance because of the ongoing cost-of-living crisis, rising inflation and economic instability. According to MoneyView 2026 report from Money&Pension Service, around half of UK adults are struggling with bills, not saving regularly and would be unable to cope with a three-month loss of income. Financial difficulties can have a major effect on an employee’s physical health, mental wellbeing, and overall quality of life. They are a common cause of stress, anxiety and depression. In fact, research from Money and Mental Health Policy Institute highlights that in England alone, over 1.5 million people are experiencing both problem debt and related mental health issues. Alongside mental health problems, money worries can impact employee’s sleep and energy levels, cause relationship difficulties, as well as lead to social withdrawal and development of unhealthy coping methods, like drinking too much alcohol or gambling.
“There are clear links between financial strain and poor mental health and for people experiencing both they are faced with a double taboo. We don’t like to talk about money matters and the perceived stigma about mental health is stopping many of us from talking about our problems.”
Negative effects of financial difficulties on an employee’s mental and physical health can also affect workplaces by driving up sickness absence, presenteeism and staff turnover. With 31% of UK working adults admitting that money worries have negatively affected their work performance, employers should recognise the pivotal role they can play in helping staff to understand and improve their financial wellbeing. Empowering employees to take control of their money and providing them with financial management tools can boost both their wellbeing and workplace productivity, benefiting both the business and its workforce.
10 ways to support the financial wellbeing of your workforce
Understand employee financial wellbeing and their needs
Measuring employee financial wellbeing is essential if you aim to create a supportive work environment. A bespoke anonymised employee survey is a good tool to determine employees’ financial wellbeing needs and help to identify issues that are causing financial distress. This could be done as a part of a general employee wellbeing survey. By gathering the necessary data, you could implement effective financial wellbeing initiatives. A summary of the findings should be shared with employees, alongside a commitment to help address any needs identified.
You can find example survey questions from the CIPD.
Develop an effective financial wellbeing policy
Implement a financial wellbeing policy and make sure that employees know how to access it. You should set out the purpose and scope for having a financial wellbeing policy and include clear signposting to internal and external sources of help, accessible employee benefits, and practical manager support. This can be set up as a standalone policy, or it can be incorporated into an overall employee benefits and wellbeing policy.
Create a culture of openness and encourage conversations about money
Money is often a taboo topic, and stigma can prevent people from getting the guidance and support they need. However, talking about money openly can make a big difference – it builds financial confidence and resilience, and helps people take positive action. Various national campaigns like Talk Money Week or Financial Awareness Day are great opportunities to start the conversation about financial wellbeing at work. You could, for example, organise a financial wellbeing event with different fun group activities, discussions, and informative sessions with experts such as pension providers, financial service organisations, or local Independent Financial Advisers (IFAs).
Offer financial education programmes
Offering webinars or onsite workshops can give your staff the knowledge, skills, and confidence to make better financial decisions and help them reframe their mindset around money. Financial education programmes that teach budgeting, debt management and savings strategies can also empower employees to take charge of their finances.
Get in touch with us to find out about our Financial Wellbeing Webinar or Money, Happiness and Wellbeing Webinar for your staff.
Review and enhance workplace benefits
Audit your existing financial wellbeing benefits, such as your Employee Assistance Programme, workplace pension scheme, retail discounts, or cycle to work scheme and understand how well they respond to your employees’ needs. You may want to launch additional financial support services like critical illness cover, income protection, payroll saving scheme, a partnership with a credit union, and low-cost or interest free loans for financial emergencies. Raise awareness of any existing employee benefits you provide and ensure that staff know how to access them.
Through our Employee Assistance Programme (EAP) employees can speak to a professional 24/7 and get practical advice on topics such as housing, debt management and consumer rights, helping them navigate complex situations without feeling alone. Get in touch with us to find out more.
Support careers development
Provide training and development opportunities for staff to enable them to acquire the skills and experience to grow in their careers and enhance their earning potential. Ensure that employees can access information about new job openings, secondment opportunities or special projects and that older members of staff, those with disabilities, or those working part-time are not overlooked. You should also be clear about how salaries are set and how pay rises and promotions can be achieved.
Offer flexible working wherever possible
Small changes like offering flexible start and finish times, shift swaps, or occasional home-based work, can really make a difference. For example, it could help parents or those with caring responsibilities to better manage their time to reduce some of the childcare expenses or carer costs. Also, this could give staff the time to access external help, such as visiting a financial advisor.
Signpost your team to the resources and support that is available externally
Share resources via intranet or in communal areas that can help your staff better manage their finances. Include information about organisations and charities offering free advice and support for people with financial difficulties. Examples include:
MoneyHelper tools and calculators: easy-to-use calculators that can help to budget, save and cut back on costs.
MoneyHelper guides: free guides covering money and pension topics including Universal Credit, mortgages and bank accounts. Guides can be downloaded as PDFs or ordered as hard copies for free.
Ask Bill: advice and support on water, energy, debt, self-help and accessibility issues.
Pension Wise: a free Pension Wise appointment explaining the options for taking money from a defined contribution pension. It’s impartial and backed by government.
The Debt Advice Locator tool: free, confidential advice from a trained and experienced debt adviser.
TaxAid UK: free, confidential advice on tax to those on low incomes.
Turn2us: online benefits checker and huge database of grants.
Mental Health & Money Advice: help and support for understanding, managing and improving money and mental health issues.
MoneySavingExpert: practical advice, money saving tips and comparisons.
National Debt Line: debt advice, support with budgeting and guidance about dealing with debt.
StepChange Debt Charity: debt and money advice, including a free Debt Remedy budget tool.
Christians Against Poverty: debt support and money management support.
Debt Advice Foundation: Specialist debt charity offering free, confidential advice on any aspect of debt.
Financial Conduct Authority: provides support on how to avoid investment and pension scams.
Consider becoming an accredited Living Wage Employer
Becoming a Living Wage Employer can show your clear commitment to fair pay and financial stability. Unlike the government’s National Minimum Wage, the Real Living Wage reflects the actual cost of living including essentials like rent, food, and travel.
You can learn more or apply for the accreditation on the Living Wage Foundation website.
Raise awareness of state benefits
Some of your staff may be missing out on benefits they are entitled to, such as childcare support, disability allowances, or Universal Credit. As an employer you can play a pivotal role in raising awareness about state benefits by integrating comprehensive information into your internal newsletters and intranet, or by hosting informative sessions with guest experts. This can help demystify complex eligibility criteria and break the stigma often associated with claiming benefits. Also, equipping HR Professionals and Line Managers with basic guidance on state support would allow them to direct struggling team members toward relevant resources, for example when they are facing a life event that affects their money, such as divorce, losing a spouse, or having a baby.
Find out more: GOV.UK and Citizens Advice
Financial wellbeing is becoming a crucial aspect of any workplace wellbeing strategy, particularly as rising living costs continue to affect employees across the UK. Given the impact money worries can have on sickness absence, presenteeism and staff turnover in the workplace, employers should recognise the role they can play in supporting the financial wellbeing of their staff. All employers, regardless of their size and sector, can help their staff to improve their level of financial literacy needed to budget effectively, manage debt or plan for retirement. By combining fair pay, financial education, structured support, career development opportunities, and transparent communication, staff can feel more secure and empowered. Supporting the financial wellbeing of employees is not just a moral obligation - it is a strategic business decision that can lead to a healthier, more engaged and resilient workforce.
Further guides, toolkits, and reports:
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