Financial Well-Being: Unpacking the Employee Experience

The ever-increasing cost of living, coupled with economic uncertainty, has posed significant risks to employees’ financial well-being.

I urge employers to consider financial well-being with greater care, as it goes far beyond just paying wages.

We recently ran a survey of 1,000 UK workers to better understand their financial position, revealing that many regularly rely on debt and struggle to save.

In this blog, I’ve unpacked some of the key findings from our survey, helping to paint a picture of how today’s workers are faring.

Struggling with saving

More than half (55.49%) Agree it’s hard to be consistent with saving money.

However, demographic insights highlight that younger respondents are struggling more—those aged 16-24 (66.23%) and 35-44 (63.64%).

In contrast, older employees (55+) are more financially stable, perhaps due to having fewer financial obligations or more established savings habits, with just 43.42% agreed and famous 39.91% disagree with that statement.

This data underscores the importance of offering financial support that addresses the challenges faced by different age groups.

Regular debt

Although 78.94% employees who express high financial confidence, they rely on debt (credit cards, buy now pay later, overdrafts or loans) on average7.24times per year to bridge the gap before payday.

Looking at demographic insights, this is becoming increasingly concerning, as the 25-34 age group is increasingly struggling, with82.76%of them have used debt in the past year.

This reliance on debt can perpetuate a cycle of financial stress, especially if high interest rates or fees are involved.

However, financial stress is not just an issue that employees have to deal with.

With it impacting productivity, mental health and staff retention, the pressure is on businesses to act and support their people if they are to truly thrive.

Little dependence on the employer

When facing financial difficulties, research finds just that3.3%will turn to their employers, with most relying on partners (32%) or family ( 15% ).

Low percentage of respondents (3.3%) Who will turn to their employers for financial support highlights a significant opportunity for businesses to step in and support their employees as part of a benefits package.

Offering greater financial support can help build trust, improve employee wellbeing and differentiate a business in a competitive job market.

I also want to highlight that 10.58% respondents said they would not turn to anyone.

It is concerning that segments of the workforce may feel isolated or lack access to financial support.

This further highlights the business case for employers to create a supportive environment and offer additional assistance.

Other Content: Research finds that 46% of UK workers want to cancel monthly payments

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Building a Financial Wellness Strategy

Financial stress impacts productivity, retention and engagement, with the rising cost of living intensifying these issues.

Clearly, there is a need for action.

Here are five steps to take when developing a financial wellness strategy.

1) Set your course

Building a compelling business case for financial wellbeing support can help set a clear direction for your business, fostering understanding among leaders and key stakeholders.

As a starting point, benchmark against competitors, discuss leadership priorities and outline the costs/risks of inaction.

2) identify those at risk

Avoid assumptions and engage with employees directly to identify those most at risk of financial stress.

Normalize having conversations about money and encourage managers to talk to their teams, ideally in a one-to-one setting, or for a less direct approach, using surveys to gauge overall sentiment.

Also, pay attention to indicators of financial stress, which can include:

• Increased absenteeism
• Presenteeism
• Reduced productivity
• Mood swings
• Delayed retirement plans

Business leaders and managers must be equipped to recognize the signs of poor mental health and financial stress.

3) Take action

While raises or bonuses may not always be deserved, ensuring fair wages should be the primary goal.

Additionally, other measures include:

• Financial Education
• Warning against fraud
• Earned wages access (EWA)
• Travel loan or discount voucher
• Work flexibly to reduce costs
• Job sick pay
• Crisis loans for emergencies

These targeted actions can provide meaningful support to employees facing financial difficulties.

4) Communicate

Now that your strategy is in place and actions have been decided, communicate the plan with your workforce.

Use a variety of channels such as email, meetings, direct messages, intranet and even printed materials.

Also, encourage open dialogue about financial challenges to help reduce stigma and foster trust.

5) Reviews

The final step is to evaluate your efforts and identify areas for future improvement.

Measure how valuable it is to staff, looking at metrics like:

• Participation in the program
• Absorption of benefits
• Employee engagement
• Data from survey

Reviewing regularly allows you to refine initiatives, address gaps and introduce new improvements.

The desire to gain access to earned wages

Earned wage access, also known as on-demand pay, allows employees to withdraw a portion of their earned wages before their scheduled paycheck.

Our survey revealed that two-thirds ( 66.7% ) workers said they would use earned wage access if available, with 22% choose weekly use.

Nearly half (47.9%) respondents also said that Ewa made work more interesting, with numbers skyrocketing55.84%for those aged 16-24 and65.52%for 25-34.

The data highlights significant demand for EWA.

For these workers, EWA offers a practical solution to reduce reliance on high-interest credit options.

How wage access works

To offer on-demand pay, you need an earned wages access platform that syncs with your current payroll software.

Once implemented, employees complete their shifts as usual, collecting revenue.

Employees can then access their funds – often up to 50% of their accumulated salary – immediately or within hours via a mobile app or online platform.

When Payday arrives, the advance amount is deducted from their regular paycheck, along with any applicable fees.

Partner with levels to offer payments on demand

We have partnered with leading on-demand payment providersFinancial Technology LevelTo bring features to users of our payroll and HR software.

Through this partnership, data is seamlessly synced between slices and levels to automate earned wage access for staff.