17 Apr 2025

How employers can help ease the stress of money worries

New research reveals the workplace impact of money worries and the role employers can play in helping employees tackle money worries.

Almost a quarter of UK workers (23%) have had to borrow money from family and friends in the last year because of money worries, and almost a fifth have taken on debt (18%) - according to new research of more than 2,000 workers by WEALTH at work.

More than a quarter (28%) have worked more overtime, and more than one in ten workers (13%) have taken on an additional job.

Workers thought that their biggest financial concerns for the year included:

Not having enough savings for unexpected costs (42%)
Not being able to save enough for the future (37%)
Not being able to pay basic living costs such as rent, mortgage payments, energy bills, food etc (34%), and
Being in debt (29%).

The weight of this financial burden and debt anxiety has spilt into the workplace.

Workers admit that money worries affect their performance at work by causing:

Increased stress levels (40%)
Mental exhaustion (35%)
Decreased motivation (26%), and
Physical exhaustion (25%).

More than a fifth (22%) admitted that it led to reduced focus and concentration, and one in ten (10%) say it has led to increased sick days.

Whilst 61% of workers say they feel supported and 40% say they are comfortable discussing money worries or debt-related issues with their employer, only 13% would actually do so.

Those aged 55+ are the age group least likely to seek help from their employer, with only 5% saying they would.

Things can only get better

Despite these findings, there is a positive future outlook with 43% of workers believing their financial situation will improve.

Also encouragingly, the research found that if they had spare cash, more workers would:

Save it for a rainy day, such as in an ISA (42%)
Pay off debt (35%)
Spend on essential bills (34%) or
Save it for retirement (26%), rather than spending it on something they want (25%)

“With almost 14.6 million UK adults not coping financially or finding it difficult to cope, many are looking for ways to help ease the strain on their finances, said Jonathan Watts-Lay, director at WEALTH at work.

“Whilst being employed has traditionally been associated with financial stability, research from StepChange showed that 44% of those seeking debt advice were full-time employed, cementing that money worries are firmly also a workplace problem.

“After all, when struggling with money, people are less productive when they are in work, can be tipped into financial vulnerability and at a greater risk of predatory behaviour from scammers.”

“Having a savings safety net to fall back on is a crucial part to overcome money worries,” he added.

“This is because savings can help improve financial resilience by removing the need to borrow, as well as preventing hardship by having access to funds to draw on when needed.”

Watts-Lay added that these findings should prompt employers to consider how employees are being supported to tackle money issues head on and build financial resilience.

“Financial education can make a huge difference by giving workers the opportunity to understand their finances, including ways to save money, learn about budgeting, manage debt, and how to boost savings and prepare for retirement,” said Watts-Lay.

“With so few people saying that they would actually seek help from their employer, the onus is on employers to remove the stigma around money worries and offer easily accessible support to all staff.

“Through financial coaching many people discover important financial lessons that make a considerable difference to their finances and overall wellbeing, which in turn can lead to increased productivity and less absenteeism in the workplace.”