How to help employees turn earnings into savings
Saving has always been one of those “I’ll get round to it” goals. But in today’s cost-of-living climate, it’s become something many employees feel they simply can’t afford to do.
The truth is most people want to save; they just need the right structures and nudges to make it possible. And that’s where employers can play a powerful role.
According to the Financial Conduct Authority’s Financial Lives Survey (2024), one in ten UK adults have no savings, and 21% have less than £1,000 set aside. For HR leaders, these statistics should raise alarm bells.
Without a financial cushion, even a small, unexpected expense, like a broken boiler, a missed shift, or a car repair, can quickly lead to stress, debt, and absenteeism.
Research from the Chartered Institute of Personnel and Development (CIPD) found that employees experiencing money worries are more than twice as likely to report poor mental health and lower productivity at work.
So how can employers help staff build a savings buffer when money is tight and confidence is low? The answer lies in making saving simple, automatic, and achievable.
Turning intention into action
Behavioural science shows that the biggest barrier to saving isn’t motivation, it’s friction. When people have to decide to save, they often put it off. But when saving happens automatically, participation rates soar.
That’s why payroll-linked savings schemes are gaining traction. These allow employees to set aside small amounts directly from their salary before it reaches their bank account, making saving effortless.
Different industries have adopted these schemes in ways that suit their workforce. Large retail chains often use automatic micro-savings schemes that round up wages to the nearest pound, while professional services firms may offer salary sacrifice schemes linked to bonus payments.
Even in smaller organisations, simple opt-out schemes have seen participation rates of 70% or more, showing that size isn’t a barrier to success.
The Nest Insight report found that when employers introduced payroll-linked savings options, average savings rates increased by 42% within six months. Many organisations report that once employees see how easy it is, they rarely opt out.
The power of small steps
When employees are living payday to payday, talking about saving can feel unrealistic - even guilt-inducing. That’s why framing matters. Encouraging people to start with micro-saving, even £5 or £10 a month, builds momentum and confidence over time.
Some HR teams are introducing gentle “auto-enrol nudges” into workplace financial wellbeing programmes. For example, when an employee receives a pay rise or bonus, they might automatically save a small percentage of that increase. Digital tools, from goal-based savings pots to round-up functions, make progress visible and rewarding.
The Financial Capability Strategy for the UK reports that when saving goals are specific and personalised, employees are up to 50% more likely to stick with them over the long term.
Even with strong schemes in place, some employees may still struggle to save. Employers can signpost impartial support through organisations such as the Money and Pensions Service, Citizens Advice, Money Wellness or StepChange, and provide access to financial coaching or webinars, ensuring all staff can find help that suits them.
Making it part of the culture
Financial wellbeing isn’t just about tools and apps. It’s about culture. When employers normalise conversations about money, they help remove the stigma that keeps many people from seeking help.
Some organisations now include financial wellbeing as a standing item in wellbeing check-ins, or offer short “money confidence” sessions during working hours.
Good for employees, good for business
Helping employees build financial resilience isn’t just a moral decision; it’s a strategic one. Financial stress costs UK employers an estimated £6.2 billion in lost productivity every year, according to Aegon UK.
When staff feel financially secure, they’re less distracted, more engaged, and more likely to remain loyal to their employer.
Ultimately, HR’s role is not to solve every financial problem but to create the conditions where saving feels possible again. That means providing tools that remove friction, communication that encourages small wins, and a culture that supports open conversation.
Because when employees can start saving - no matter how little - they build not just a buffer for their finances, but for their confidence too. And that’s something every business benefits from.
Supplied by REBA Associate Member, Moneyappi
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