British employers are rapidly shifting their approach to financial wellbeing, with nearly half now actively trying to understand the economic concerns of their staff.
The proportion has risen from just 12% in 2022 to 45% last year, according to a study by UK motivational speaker agency Speakers Corner. The change is being described as a turning point in workplace wellbeing.
Rather than treating money issues as private or taboo, a growing number of businesses are recognising the impact of financial stress on employee performance, mental health and overall job satisfaction.
“It’s reassuring to see employers taking their employees’ financial concerns more seriously,” said Nick Gold, managing director of Speakers Corner. “Our research shows that businesses are moving beyond surface-level support and making a real effort to understand and address the financial wellbeing of their teams. “
Gold added that it was “not only good for employees; it’s also vital for building resilient, people-first workplaces. And that’s a positive move in the right direction”.
More Conversations and More Training
Speakers Corner commissioned a survey of over 500 business owners and directors across the UK to explore how companies are responding to employee financial challenges.
The data shows strong year-on-year increases in nearly every area examined:
- 41% of businesses now provide access to professional financial education resources, up from 13% in 2022
- 44% are training senior staff to better support employees around financial matters, compared with just 13% two years ago
- 37% of businesses are normalising conversations about money at work, a whopping increase of 185% since 2022
Most notably, the number of employers who report supporting financial wellbeing by paying a fair wage and being mindful of rising expenses has risen from 15% to 49% over the same period.
Experts say it suggests that employers are starting to view financial wellbeing as a core part of their responsibilities, rather than something best left to individual staff members.
Why Financial Wellbeing Matters at Work
Financial concerns are one of the leading causes of stress among UK workers. A report by the Chartered Institute of Personnel and Development (CIPD) found that one in four employees said money worries had affected their ability to do their job. The problem is especially acute among younger workers, those on lower pay and people with caring responsibilities.
Poor financial wellbeing is also linked to higher rates of absenteeism, presenteeism and turnover. According to the financial services provider Wagestream, employees with money worries are twice as likely to be looking for a new job and three times as likely to experience poor mental health.
As a result, employers have strong business incentives to help staff manage their financial lives more confidently. Providing support does not always require costly benefits or salary increases. Financial education, timely signposting and encouraging open discussion can have a significant impact.
From Perks to Pillars
For many years, financial support was considered a perk rather than a priority. It was often bundled into voluntary benefits platforms or outsourced to third-party providers with limited engagement.
What has changed, according to observers, is a growing awareness that financial wellbeing underpins every other area of workplace health. Employees who are constantly worrying about bills, debt or childcare costs cannot fully engage with wellbeing apps, team-building events or mindfulness programmes.
This view is echoed in research by the Money and Pensions Service, which found that 90% of employers agree financial wellbeing leads to better employee engagement and productivity. But until recently, few organisations had a clear strategy for addressing it.
The findings from Speakers Corner suggest this may now be changing, with a shift from reactive interventions to more proactive planning.
Leadership Plays a Key Role
Training senior leaders to understand and support financial wellbeing is another area that has seen a marked increase. Just 13% of businesses offered such training in 2022. By last year, that figure had risen to 44%.
Leadership attitudes and behaviours set the tone for workplace culture. When managers avoid talking about pay, expenses or hardship, employees are likely to do the same, even when they are struggling. By contrast, leaders who are open, informed and empathetic can help destigmatise financial difficulties and encourage staff to seek help early.
Financial wellbeing experts say the return on investment for this kind of leadership training can be significant. Informed managers are better placed to refer employees to trusted resources, accommodate temporary difficulties such as debt or housing insecurity and promote the use of existing support programmes.
With inflation still affecting household budgets and interest rates remaining high, employee financial pressures are not going away. But the new data indicates that many employers are no longer treating this as an individual burden.