28 May 2025

How employers can support mental and financial wellbeing

It’s widely recognised that financial stress can affect mental wellbeing, and with the cost of living rising, it’s increasingly important for employers to identify how best they can support their staff.

According to Deloitte, poor mental health costs UK employers £51 billion a year, and for every £1 spent on supporting the mental health and wellbeing of their workforce, employers get (on average) around £4.70 back in increased productivity.

With 78% of employees remaining worried about the rising cost of living, nearly 54% say financial stress impacts their ability to work effectively according to Britain at Work: Cost of Living Report.

The result is often presenteeism, with employees working despite illness and not performing at their full ability, or absenteeism due to stress.

Here are some key considerations for employers on how to tackle this issue through a well-designed benefits strategy:

Provide mental health support: employee assistance programmes (EAPs) and mental health first-aiders are key for organisations looking to alleviate financial stress for their workforce. Many employers will already have these in place. However, it’s important to ensure that they are well-communicated. An EAP should also be easily accessible as it can provide a critical first line of support.
Create an open, supportive work culture: Regular and supportive communication around finances can help normalise these difficulties and demonstrates the employer’s commitment to supporting employees with financial and mental well-being.
More benefits promotion and hidden value in add-on services: While employee benefits can be easily forgotten until needed, promoting these regularly will help remind employees of the support available to them, improving financial peace of mind. Many benefits policies also come with value-added services. These range from financial coaching and legal helplines to wellbeing apps and resources. They are frequently underused, normally due to a lack of awareness. Regularly reviewing these and running multi-channel campaigns to promote them will help ensure they can be accessed by those who need them most.
Income protection, critical illness and group life: these policies provide vital financial support during life-altering moments. With group life insurance, the financial protection extends more specifically to family and loved ones. For many, the emotional value of these policies can be significant as they not only offer a financial safety net but also a psychological one, knowing that support is in place if they face illness or bereavement.
Financial education: offering workshops or content around budgeting, saving, debt management pensions and long-term planning with access modelling tools can help boost confidence and reduce future-focused anxiety.

As employee expectations rise and the workforce diversifies, there is a unique opportunity and responsibility for employers to ensure they are providing suitable support.

Recognising that financial and mental wellbeing are closely linked should help optimise the effectiveness of any campaigns and reduce the impact to business performance.

What can you do now?

As costs continue to rise, now is the time to audit your benefits strategy and check that your offerings address the real-world concerns of your employees.

Using data analytics to be able to identify and confirm the issues being faced by employees, you can tailor your approach to the unique needs of your workforce, enabling you to deliver a lasting impact for your employees and business.