Helping employees build financial resilience

New findings reveal just how tough saving has become for UK employees - and how significantly financial stress is spilling into the workplace.

A survey of working adults by WEALTH at work shows that the biggest financial worries this year include not having enough savings for unexpected costs (42%) and not being able to save adequately for the future (37%). The consequences are increasingly visible at work: 40% of employees say money concerns affect their performance, leading to higher stress, mental exhaustion (35%), lower motivation (26%), reduced concentration (22%), and even increased sick days (10%).

In response, WEALTH at work has set out five practical steps employers can take to strengthen employees’ financial resilience - an area business leaders can no longer afford to ignore.

1. Understand employees’ financial needs

Workers’ priorities vary widely depending on their life stage - whether saving for a first home, paying down debt or building retirement funds. Employers can support these differing needs by offering targeted financial education and personalised guidance through a structured financial wellbeing programme.

2. Offer support on the basics

Many employees struggle with day-to-day financial decisions. Encouraging staff to review their outgoings - from bills to subscriptions - can highlight simple savings opportunities. Basic financial education around topics such as budgeting, insurance shopping and comparison tools can help employees make informed decisions and reduce avoidable costs.

3. Highlight the value of employee benefits

The survey found that 42% of workers would save any spare cash for a rainy day. Employers should ensure staff understand the full range of workplace benefits available to help them save, such as payroll savings schemes, workplace ISAs, share plans and matched pension contributions. Even small increases can make a meaningful difference: for example, a 25-year-old could boost their pension pot by 25% simply by saving 1% more - if their employer matches it.

4. Help employees distinguish good and bad debt

Understanding debt is key to financial confidence. Long-term, low-interest borrowing such as a mortgage can be considered “good debt”, but high-interest credit cards or payday loans can quickly spiral. Illustrating repayment examples - such as the difference between paying off a £3,000 balance at £52 versus £100 or £325 a month - helps employees see how small changes can dramatically reduce interest costs and repayment times.

5. Reinforce the need for an emergency fund

A lack of accessible savings leaves households vulnerable to sudden shocks. Ideally, employees should hold three to six months’ worth of expenses in an emergency fund for events such as illness, redundancy or unexpected bills. Workplace savings schemes can play a key role in helping staff build this safety net steadily over time.

Jonathan Watts-Lay, Director at WEALTH at work, said many employees don’t appreciate the importance of financial resilience until a crisis hits.

“Building a good financial wellbeing programme is vitally important to help employees take control of their finances and put themselves in a more secure position in the future.”

He added that employers are increasingly offering financial education through workshops, digital tools and helplines, alongside workplace ISAs and payroll savings initiatives designed to make regular saving easier.

As financial pressures continue to weigh on households, supporting staff with the tools, education and benefits they need to build resilience is becoming not just a welfare priority - but a business imperative.

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