Workplace savings benefits: how to determine the best option for your organisation
With wages struggling to keep pace with inflation and the cost of food and energy rising, many employees are finding it harder to save or plan.
Research from Lifetime Financial Management found that around one in seven UK workers (14.8%) say money worries affect their performance, rising to one in five (20.5%) among Gen Z employees.
Meanwhile, Forbes reports that 79% of Gen Z and Millennial adults now seek financial advice on social media, a worrying trend given how much of that information could be unreliable.
For employers, this is a challenge and an opportunity. Financial stress can affect productivity, engagement and absenteeism, with clear implications for performance. Financial wellbeing is therefore no longer a “nice to have”; it is a key part of a comprehensive health and wellbeing strategy.
From nice-to-have to business essential
The Money and Pensions Service defines financial wellbeing as people feeling secure and in control and able to manage daily expenses, handle unexpected costs, and prepare for the future.
While pensions remain a vital part of benefits packages, they primarily support long-term security. Increasingly, employees also need help feeling financially stable in the present.
The answer isn’t always higher pay. For many organisations, this isn’t feasible and it doesn’t necessarily improve how people manage their money. A more effective approach combines financial education, practical tools, and meaningful support.
By offering guidance on budgeting, debt, and savings, employers can help people feel more in control and reduce financial stress.
Layered approach to financial wellbeing
To support employees effectively, financial wellbeing can be viewed as a pyramid, with each layer building on the last.
At the base is day-to-day money management, helping employees to budget, manage debt, and avoid high-cost borrowing. Next comes creating a safety net through emergency savings or protection against unexpected costs. Above this is saving and investing, including workplace schemes that encourage regular saving.
Higher up are retirement and property planning, covering pensions, mortgages, and long-term investments. At the top is estate planning, helping individuals secure their future and protect their families.
Organisations don’t need to cover every layer but should focus on what’s most relevant to their workforce. For instance, a tech firm with high earners may see greater value in offering investment or retirement planning support, including access to qualified financial advisers.
In contrast, some employees may be struggling with debt, a sensitive area for employers to address. Thoughtful communication and confidential tools - such as debt management support, budgeting resources, or educational sessions - can help build financial confidence without intruding on privacy.
Companies need to understand the financial pressures their workforce faces. Every workforce is different, so what works for one organisation may not suit another. Engaging with employees is therefore essential to reveal the real challenges and priorities.
Why workplace savings?
When talking about workplace savings, it’s typically referring to savings products that can be facilitated in the workplace to compliment the pension plan, including Individual Savings Accounts (ISAs), Lifetime ISAs (LISAs), Junior ISAs (JISAs) and General Investment Accounts.
Whether it is helping younger generations take their first step onto the property ladder, enabling families to save for their children’s future, or providing high earners with alternative savings options when pension contributions are capped - these products play a vital role in supporting employees at every stage of life.
When offered through the workplace, they have added advantages: employees can benefit from more competitive charges and the convenience of regular contributions made directly via payroll, making saving simpler and more accessible for everyone.
Taking action
Employers should start by assessing which aspects of the wellbeing spectrum are most relevant to their workforce and where support is most needed.
Part of this will involve understanding the specific challenges their employees are facing. Listening to employees through surveys, focus groups, or informal feedback highlights immediate needs and uncovers deeper challenges. This ongoing dialogue supports a data-led strategy that combines financial education, accessible benefits, and a supportive culture.
Successful programmes blend education and guidance with access to resources, products and services, and combined with the facilitation of action.
Measuring the effectiveness of financial wellbeing programmes is key and this is where it’s important to have a governance system in place to monitor the effectiveness of the initiative and measure the ROI using clear examples and metrics.
Above all, it’s important to remember that financial wellbeing is a long-term, strategic commitment, embedded in company culture, championed by leadership, and regularly reviewed to ensure it meets employees’ evolving needs.
Trusted voice
By acting as the trusted voice, employers can direct employees to credible resources, products and services, and help them take control of their finances. Using their presence to partner with the right organisations and driving the long-term strategic education agenda.
A financially resilient and confident workforce isn’t just a wellbeing win, it’s a business imperative. By offering workplace savings options that meet diverse needs and life stages, employers can foster a culture of empowerment and trust.
Now is the time to build a financial wellbeing strategy that supports members not just today, but tomorrow - and one day in the future.
Supplied by REBA Associate Member, Howden Employee Benefits
Howden provides insurance broking, risk management and claims consulting services, globally. We work with clients of all sizes to provide dedicated employee benefits & wellbeing consultancy.
