Need to know:
- Organisations should understand employees’ challenges and needs when providing financial assistance.
- Employers can provide money management tools to build financial resilience.
- Offering education and coaching can equip employees with the tools to manage difficulties when they arise.
More than a quarter (27%) of employees describe their financial situation as struggling or in crisis, according to Hymans Robertson Personal Wealth’s August 2025 research. As a result, some may look towards their employer for some financial support to combat this issue. So, what measures can organisations put in place to support staff experiencing financial difficulties?
Financial pressures and causes
Living costs started rising noticeably a few years ago, and people are still dealing with the impact today. Financial pressure can be caused by a variety of factors, such as high council tax rates, stagnant wages, energy and utility and food bills, as well as continued global uncertainty and its effect on oil prices, stocks and shares.
Another issue is the impact of inflation over the past five years, with higher rates seen in previous years still having an effect, explains Andreas Hunter, head of wellbeing at Gallagher.
“Energy bills in the UK have risen significantly,” he says. ”Helping employees with the cost of living is still something that employers are dealing with, as well as supporting them with higher day-to-day costs.”
Furthermore, Wealth at Work’s March 2025 research highlighted workers’ biggest financial concerns were not enough savings for unexpected costs (42%), and not being able to pay basic living costs, such as rent and mortgage payments, energy bills and food (34%).
Jonathan Watts-Lay, director at Wealth at Work, says: “The weight of financial burden and debt anxiety has bled into the workplace. Money worries can affect employees’ performance by causing increased stress levels, mental and physical exhaustion, and decreased motivation. It can also lead to reduced focus and concentration, and increased sick days.”
Identifying staff in need
Due to its personal nature, some employees may not feel comfortable discussing financial difficulties, resulting in employers being none the wiser to their struggles. In order to offer effective support, they should be able to identify employees who need it. Typical flags in employee behaviour and interactions can include regularly requesting wages in advance or small loans.
“Employers can use data to highlight challenges and provide context, because there is still a disconnect between what they think is going on in their employees’ lives and what actually is,” says Hunter.
Regular and targeted two-way communication with employees is vital to understanding their changing needs, for example, through anonymous surveys or feedback.
Matt Russell, chief executive officer at Zest, says: “Being able to communicate effectively, and monitoring take up and engagement, will ensure that the right benefits reach the right employee at the right time, demonstrating that an organisation has listened and is responding to employees’ needs effectively.”
Targeted financial support
Employers must first understand the personal challenges or needs of their employees, because they will all be at different stages in their lives and careers, to ensure they can deliver on these effectively.
Additionally, a pay rise might not be a feasible way for every employer to support employees in financial difficulties, particularly following increased employer national insurance contributions. They may be able to offer assistance in other ways such as financial education and coaching, and retirement planning and advice, or even hardship loans for quick support.
“Many employers provide access to individual savings accounts (Isas),” says Watts-Lay. ”This can give workers the opportunity to understand their finances, ways to boost savings, learn about budgeting, manage debt, and prepare for retirement. Offering a range of financial wellbeing benefits which are aligned in strategy should help employees feel financially secure whether they are managing childcare costs, saving for a first home, or planning for retirement.”
Employers can also help employees manage financial difficulties by providing discount platforms to cut grocery bills or travel season tickets to combat rising costs in both areas.
“Helping employees to start an emergency savings fund is useful to promote financial resilience and avoid debt problems,” adds Hunter. ”As well as credit unions and wage forwarding programmes, signposting to debt advice through Moneyhelper [from the Pensions Advice Service] to help with financial difficulties that can arise from buy-now, pay-later services can help.”
Other helpful benefits
Perks that have a clear financial benefit are useful for staff with financial difficulties, such as private medical insurance and energy cost contributions. Health cash plans can help with medical, optical and dental care and can include cover for children and other family members, too.
“Providing targeted support for employees contributes to a more compelling workplace proposition, making them happier and more productive and engaged at work, which, in turn, provides increased value and a better return on investment,” says Russell.
Another way of helping employees with financial challenges is keeping them in work, because those struggling with financial issues may experience mental health difficulties and potentially drop out of the workforce.
“Younger staff are dealing with mental health issues more these days, so this is critical to address,” says Hunter. “Employers can help by having employee assistance programmes and counselling services readily available as standalone products or bolt-ons to existing support.”
To effectively ensure they are assisting staff in financial difficulties, employers must provide useful support that can get to the heart of the problem for all employees.
