The ways companies are using benefits to ease financial stress

Organisations are incorporating financial wellbeing initiatives - such as debt counselling and financial literacy training - into their rewards packages.

Financial stress has long-lasting effects in the workplace, from mental health to job performance. More than half of UK employees (52%) say financial worries have harmed their work performance, while almost as many (45%) report sleep disruption as a result, according to Mental Health First Aid England.

These challenges contribute to lower wellbeing, reduced productivity, and higher turnover.

Financial wellbeing initiatives can play a powerful role in reducing financial stress and improving overall workplace health. Below, we’ll explore how these initiatives work and why they’re worth incorporating into your organisation’s rewards programme.

Understanding financial stress and its impact

A third of adults in the UK have felt anxious over the course of a month due to their financial situation, according to a poll by Opinium in November 2023.

This kind of stress not only affects 31% of the population; the same stress has consequences for organisations, leading to absenteeism, disengagement, and reduced productivity.

When left unaddressed, financial worries often lead to mental health challenges such as anxiety and depression, costing the UK economy up to £57.4 billion each year, almost double what it was estimated in 2023.

While these statistics are concerning, they also present a clear opportunity for businesses. By investing in employees through thoughtful financial wellbeing initiatives, organisations can enhance their reward offerings, support employees’ overall health, and stand out.

The rise of financial wellbeing initiatives

Ongoing economic challenges emphasise the importance of financial wellbeing to both employees and employers. In response, many UK organisations have prioritised financial wellbeing as part of their benefits packages.

This not only supports employees during financially uncertain times but also delivers measurable advantages to the business itself.

Among these benefits, employers can also enjoy the following advantages when prioritising financial wellbeing:

Reduced employee stress and absenteeism
Improved retention and engagement
Lower overall business costs
A stronger, values-driven company culture

Utilising financial wellbeing initiatives is an investment for businesses that repays itself over the long haul.

Key financial wellbeing initiatives in rewards packages

Looking for ideas to incorporate financial wellbeing initiatives into your organisation’s rewards package?

Below are some financial wellbeing options to consider:

Debt counselling and support: Financial debt can contribute to daily stress and anxiety, impacting productivity and overall job satisfaction. By providing access to expert advice, employers demonstrate empathy and practical support. These services can include personalised debt repayment plans, budgeting assistance, and guidance on managing credit.
Savings and investment programmes: Employer-sponsored savings programmes include pensions, workplace ISAs (individual savings accounts), and matched savings schemes. These programmes reinforce a culture of financial planning and reduce stress related to retirement or unexpected expenses. When staff know they are making progress towards financial milestones, they're more likely to feel engaged and loyal to their employer.
Financial literacy training: Equipping employees with the knowledge to make sound financial decisions is a powerful investment in their wellbeing, and in return, your workforce. Employees who understand how to manage their income, plan for goals, and utilise financial products are better off making informed decisions. Not only does this reduce financial stress, but it also empowers employees with a sense of autonomy and control over their personal circumstances.

Benefits to organisations

Financial wellbeing initiatives don’t just support employees; they also offer significant returns for employers that implement them. Investing in the financial health of your workforce contributes to a stronger, more resilient organisation.

Here are a few of the key benefits:

Improved employee satisfaction and retention: Employers who care often see that care reflected back. When organisations take meaningful steps to support employees’ financial wellbeing, it communicates a deep commitment to their overall quality of life. This often leads to increased job satisfaction, a stronger emotional connection to the company, and lower turnover rates.
Stronger company culture: A values-driven approach to employee benefits fosters a culture of inclusivity, empathy, and support. Financial wellbeing initiatives send a powerful message: that employees truly matter. When staff feel seen and valued as whole individuals, it contributes to a more cohesive, motivated team.
Attracting top talent: In today’s competitive job market, salary alone isn’t enough. Offering benefits like debt support, savings programmes, and financial education shows potential hires that a company is committed to employee success. These initiatives appeal especially to top talent who value long-term security and work-life balance.

How to integrate financial wellbeing into your rewards package

Discover the benefits of integrating financial wellbeing into your rewards package by taking the following steps to ensure your business starts off on the right foot. To make these programmes truly impactful, they need to be intentional, high-quality and inclusive.

Below are some steps to make your organisation’s launch a successful one:

Assess employee needs: Before building or expanding your financial wellbeing offerings, start by conducting anonymous surveys to better understand the financial challenges or goals your employees face. Gaining these insights helps you tailor genuinely helpful programmes.
Work with experts: Partnering with financial professionals or trusted third-party providers ensures that the financial services you offer are both credible and effective. Working with specialists also helps your organisation stay compliant and up to date with the latest financial trends, regulations, and employee benefit innovations.
Communicate effectively: No matter how great your financial wellbeing benefits are, they won’t make an impact if employees don’t know they exist or understand how to access them. Use multiple communication channels, like email, HR portals, and team meetings, to raise awareness.
Ensure accessibility: True inclusivity means designing benefits that work for every employee, regardless of income level, location, role, or financial background. Make sure programmes are accessible and flexible enough to meet a variety of needs, from entry-level staff to senior leadership.

Build a stronger workforce through financial wellbeing

Financial stress is one of the leading causes of absenteeism and disengagement in the workplace. Incorporating financial wellbeing initiatives into your rewards package isn’t just a perk; it’s a meaningful investment in your employees, company culture, and the long-term success of your organisation.