Our latest research[1] found that 40% of employees believed that money worries affected work performance because they caused increased stress levels. One out of ten (10%) employees say that it has caused them to take more sick days.
The financial wellbeing research we conducted with the Reward and Employee Benefits (REBA)[2] reveals that employers are aware of the financial risks their employees will face. These include inflation (76%), childcare costs (73%), rental prices (64%), carer expenses including eldercare (46%), and high interest rates for mortgages (58%). 53% of employers believe that the rising cost of living is a major driver for financial support in the future.
Insufficient retirement savings (71%), and lack of financial literacy (62%) are also high-risk factors for financial wellbeing. Nearly half of employers have increased their financial wellness offerings to combat these concerns. Over a third (35%) also plan to increase the amount they spend on financial wellbeing.
Now, the focus is on providing employees with knowledge and tools that will help them manage their finances more effectively. Employers offer or plan on offering financial education through an independent provider (47%) and financial coaching, e.g. Employers offer or plan to offer financial education from an independent provider (47%), financial coaching e.g.
Savings products are also gaining in popularity. Currently, one-seventh of employers (14%) offers tax-free savings in the form of Workplace ISAs. In the future, this number is expected to double to 30%. Our research shows that employees would welcome this benefit. If they had extra cash, 42% would put it in an ISA for a rainy-day.
Jonathan Watts-Lay Director, WEALTH At Work Comments;
Money worries can negatively impact people’s work and home life. It’s great to see employers taking steps to equip their employees with the knowledge and tools to better manage finances. Financial coaches provide financial education to employees at many leading companies. This can help them address their gaps in financial literacy. A variety of learning methods is important. In addition to in-person financial training, knowledge can be supported by creating informative and stimulating content, including webcasts and animations as well as interactive financial wellbeing platforms like Money&Me.
“Offering products like a Workplace ISA is also important to build financial resilience in employees,” he says. It could be for the future, or for an emergency fund in case of a car breakdown.
He continues: “But in order to boost employee engagement, it’s important that they are aware of the benefits available to them, and know how to use them.” Financial education is important in the workplace because it not only helps to develop understanding and encourages engagement, but also acts as a catalyst for behaviour change and action.
[1] https://www.wealthatwork.co.uk/corporate/2025/03/24/the-impact-of-money-worries-survey-results-2025/
[2] https://www.wealthatwork.co.uk/corporate/2024/09/25/financial-wellbeing-report-2024/
The first time this post appeared was on Human Resources News.
