How to support financial wellbeing in the workplace

Financial stress is now arguably the most pressing performance issue alongside workforce retention and legal risk for UK organisations. It was recently found in the Keep Britain Working report that UK organisations lost approximately to sickness, a 15-year high and nearly double that of pre-pandemic levels (5.8 days).

The primary driver of these absences is now mental health related issues such as stress, depression, and anxiety, being the leading cause of long-term workplace absences (41%) and second in short-term absences (29%). With the ongoing Cost-of-Living Crisis, the pressure to stay afloat is stronger than ever. 88% of people said the cost of living was the most important issue facing the UK. At the same time, 62% of people said that their cost of living had increased in the last month, and that 21% could not afford an unexpected £850 expense.

This all acts as clear evidence of financial vulnerability among working households. With the primary driver of stress, depression and anxiety being a key reason for increased sickness absence, financial pressures are of no help and may be adding to this growing concern.

For leadership teams, the business case is straightforward: targeted financial wellbeing support reduces risk, improves engagement, and helps stabilise mental health-related absence. This is key to reducing the cost of workplace absences, which have skyrocketed to £85 billion and are only set to increase by £450 million in the face of first-day Statutory Sick Pay changes and the removal of the Lower Earnings Limit under the Employment Rights Act 2025.

What is financial wellbeing?

Financial wellbeing is the ability for individuals to meet current commitments, withstand short-term financial shocks while being able to plan for the future.

For organisations, financial wellbeing is operational leverage: when people have a basic buffer and access to fair credit and guidance, they’re more likely to be focused and stay in their role. The impact of poor financial wellbeing and declining mental health is well documented, noting how it can lead to a lack of sleep and an inability to focus properly on work. It is for this very reason that many organisations note it’s value, with 1 in 5 noting how poor financial wellbeing can impact productivity and organisational success.

Why is financial wellbeing important in the workplace

Workplace performance and productivity 31% of individuals in the UK workforce noted how financial concerns negatively impacted their workplace performance. This increased to 37% among those earning under £40,000.

Demand for support 59% of people believe it is important for their current organisation to establish a policy to support and improve their financial wellbeing

Workforce impact It has been found that 40% of people in the UK workforce experience weekly financial stress; many cut essentials or take on extra work, eroding rest and recovery.

Declining mental health Just under 1 in 3 UK adults report feeling anxious over their financial situation and over 1 in 4 felt stressed for the same reasons. This is leading to higher absence rates which is costing UK organisations £120 in lost profits with each lost working day.

Promoting financial wellbeing in the workplace

Lead with assurance and dedication, not simply just ‘good intentions’. Make financial wellbeing part of your workforce strategy, with clear ownership, data, policies, support systems and measures that leadership teams can apply on a day-to-day basis. This may come in the form of providing workforces access to expert financial guidance, or mental health support to overcome the difficulties of financial stress and remain engaged in the workplace.

1. Introduce a financial wellbeing policy

Set a simple, organisation-wide policy that covers benefits, protections, and signposting. Align it to your risk assessment for work-related stress (so HR and leadership teams know exactly when and how to escalate concerns).

2. Eliminate financial stigma

Leadership teams should normalise conversations and signpost to support. It has been found that 1 in 2 people don’t feel comfortable raising financial concerns in the workplace or with senior leadership even if it does cause issues and poor mental health. By dismantling this stigma, people are less likely to suffer in silence.

3. Actively help through advice and support

For many organisations, the ripple effect of financial stress can result in dips in performance, rising presenteeism and avoidable absences — often without leaders realising that financial strain is the underlying cause. The issue can deepen and become more impactful as individuals may feel embarrassed to talk about issues and feel unsure of where to turn or become overwhelmed by the emotional weight of trying to cope alone. This is where advice and financial support become essential.

Get expert guidance on financial wellbeing in the workplace today

If financial stress is affecting performance in your organisation, accelerate access to specialist support and practical tools that people actually use.

Leadership training equip leaders and HR teams with the tools and knowledge to spot early signs of financial and mental wellbeing distress so that they can signpost support confidently.

Clinically-led wellbeing initiatives Integrate mental health and financial care—problems rarely arrive alone. Mental ill-health is the leading cause of work-related absence, and much of this may be associated with financial stress and anxiety.

How an EAP can support with financial wellbeing

Through HA | Wisdom Wellbeing’s award-winning EAP, individuals can speak to a professional 24/7 about the impact of debt, rising living costs or financial uncertainty, and receive guidance that helps them think clearly and make informed decisions. Alongside emotional support, employees can access practical advice on topics such as housing, debt management and consumer rights, helping them navigate complex situations without feeling alone.

For managers, the EAP also provides consultation lines that offer reassurance around difficult decisions, ensuring leadership responses are consistent, supportive and aligned with duty‑of‑care expectations.

And when financial stress begins to affect someone’s physical health or attendance, integrated services — such as Virtual GP access and Occupational Health — can provide early clinical clarity, helping organisations implement reasonable adjustments and maintain a safe, supportive working environment.

Conclusion

Financial wellbeing is not a perk—it’s risk management. High absence rates are directly tied to poor mental wellbeing which can are tied to persistent cost of living stress. Leaders who embed financial wellbeing into policy, training with clinically led support will see lower legal risks, improved workplace performance, and engagement as well as stronger retention.

FAQs

What does “good” financial wellbeing look like in an organisation?

Clear policy, access to short-term savings and fair credit, stigma free guidance, integrated EAP, and manager capability—aligned to your risk and absence trends.

What are the earliest signs of financial stress in employees?

Early indicators of financial stress often appear as behavioural changes, including reduced concentration, increased mistakes, avoiding team discussions about costs, or repeatedly requesting overtime or additional shifts.

Managers may also notice subtle signs such as employees appearing anxious around payday, frequently mentioning bills, or hesitating to take annual leave because of financial pressures.

What emotional symptoms should leaders be aware of?

Financial strain often shows up as low morale, irritability, withdrawal, or dips in confidence — similar to the way stress presents. Research in 2025 found that 35% of people in the UK workforce experienced financial stress reported mental exhaustion, and over a quarter described reduced motivation at work. Leaders should treat these signs as early warnings requiring sensitive support.

Are there physical signs linked to financial stress at work?

Yes. Financial worries frequently contribute to fatigue, sleep disruption, headaches, and general restlessness — all of which can reduce productivity. While physical symptoms can have many causes, they often intensify when combined with cost-of-living pressure or anxiety about debt. The link between mental health and financial stress is now well-established, with the HSE reporting 22.1 million days lost to stress, depression and anxiety in 2024/25.

How should managers approach a sensitive conversation about money worries?

Use the same approach you would when addressing stress: start with observations, not assumptions (“I’ve noticed you seem more overwhelmed lately…”). Focus on how the person is feeling rather than directly asking about debt. Leaders should create safety for disclosure, explain available support (EAP, financial guidance, flexible working), and agree practical next steps. The HSE’s Reach Out → Recognise → Respond → Reflect → Routine framework applies well in financial stress conversations too.

What internal or policy indicators tell leaders they need a stronger financial wellbeing strategy?

Common signals include an uptick in salary advance requests, increased use of company hardship funds, higher turnover among lower paid roles, and rising employee queries about SSP, sick pay, or unpaid leave.

What practical steps can employers take when financial stress is identified?

Leaders should review workload pressure, signpost support clearly, offer access to financial guidance, and ensure fair, transparent policies around pay, expenses and sick pay. Offering tools like cost-of-living support, travel season tickets and employee benefits can reduce risk. Embed financial wellbeing into your wider wellbeing strategy, not as a standalone perk.

Do employees want employers to provide financial support and guidance?

Yes—surveys through 2025 show widespread financial worry and increased use of credit; targeted, confidential guidance is valued and improves focus.