The ongoing cost-of-living crisis has placed financial wellbeing at the top of HR agendas. Rising household costs and inflation are creating significant stress for employees, with direct implications for engagement, retention, and productivity.

The Scale of the Challenge
Recent UK data underscores the urgency:

• 39% of households are struggling financially, according to the Financial Fairness Tracker (May 2025).
• 65% of employees report that their financial situation is a significant source of stress with 42% of young workers say they'd be happier if their employer helped them understand their finances better (PayFit 2025 Financial Literacy report)
• Over 2 million workers have missed shifts due to money worries, resulting in £860 million in lost productivity (Pepper Money Study 2025).

Why Organisations Need to Act
Financial stress is more than a personal concern — it has measurable business impacts:

• Reduced focus and productivity
• Higher absenteeism and presenteeism
• Increased mental health challenges
• Greater risk of turnover

Employees want support: a Willis Towers Watson survey found 59% of staff rank financial wellbeing as their top workplace support priority. Yet, many organisations are still under-delivering in this area.

Practical HR Strategies
HR teams can lead by embedding financial wellbeing into the broader employee experience:

• Offer financial education programs and one-on-one coaching
• Provide accessible tools, such as budgeting apps or early-pay options
• Promote an open culture to reduce stigma around financial conversations

These initiatives not only reduce stress but also improve engagement, loyalty, and organisational performance. Employees with access to financial wellbeing support are more optimistic about their financial futures, translating to a more focused and resilient workforce.

Conclusion
For HR, financial wellbeing is now a strategic imperative. By proactively supporting employees’ financial health, HR can improve productivity, reduce absenteeism, and foster loyalty — all while strengthening the organisation’s overall resilience in a challenging economic climate.

Find out more about Mental Fitness and Financial Wellbeing in the Mental Health & Emotional Wellbeing Theatre and Financial Wellbeing Zone at Health & Wellbeing at Work 2026, along with the very latest in solutions and services from Octopus Money, Thrive, Payfit, Modern Health, Resilient People, BEE Medic, BACP, Beverley Jones and many more!