Strategies for enhancing employee financial stability and stress management

In today’s business landscape employee wellbeing is more critical than ever. Companies are increasingly recognising the importance of supporting their workforce’s mental, physical and financial health. This shift is not just a matter of corporate responsibility but a strategic necessity that directly impacts productivity, employee retention and overall organisational success. Our recent research highlights growing levels of stress and anxiety among employees with significant portions of the workforce feeling the pressure of financial instability. Addressing these issues requires a multifaceted approach that includes effective communication, financial education and a supportive workplace environment. 

Investing in employee health yields returns not only in productivity, but also in broader societal benefits.

Reducing waiting lists and ensuring timely medical interventions can lead to an estimated £73 billion economic benefit. This emphasises the need to address the health inequalities across different generations, particularly in housing and retirement planning. Companies that proactively engage in these areas can create a more resilient and satisfied workforce, ultimately driving long-term success. 

Addressing employee stress and financial wellbeing 

Our research data reveals a concerning trend: despite a slight decrease in stress levels compared to previous years, a substantial number of employees (3 in 4) still report feelings of stress. This is across all salary levels including higher earners and senior leaders. The implications are significant as financial stress directly impacts job performance, leading many employees to consider taking second jobs (2 in 5) to make ends meet. This further highlights the need for employers to support their employees’ financial wellbeing. 

One key area where employers can make a significant impact is financial education and building financial confidence among employees. Our findings show that a substantial number of employees including homeowners and renters lack confidence in managing their everyday finances. This lack of confidence is even more pronounced among employees with diverse needs such as those with neurodiverse conditions or physical disabilities. By providing targeted financial education and resources employers can help build financial resilience among their workforce enabling them to handle unexpected financial challenges and a plan for their future. 

The role of the workplace in supporting employee wellbeing extends beyond financial health. Employees also need support for their mental and physical health. Our data shows that around half of employees feel their workplace is supportive for their physical, mental and financial health – around half do not. This gap presents an opportunity for employers to enhance their support systems and create a more inclusive and supportive environment. Effective communication is crucial as it ensures that all employees, regardless of their needs, receive the information and support they require in an accessible manner. 

Looking ahead, demographic shifts and increasing life expectancy present additional challenges for retirement planning. The traditional model of working until a set retirement age and then living off pensions is becoming less viable. With people living longer and the working-age population not growing at the same rate, there is a greater need for sustainable retirement solutions. Employers must consider the diverse needs of their workforce including those who may not have had the opportunity to save adequately for retirement. This includes providing education on retirement planning and offering flexible retirement options that cater to different life stages and financial situations.