How financial stress can affect employees at work

Financial wellbeing is about more than someone's current financial position. It also involves how confident they feel making decisions and preparing for the future.



The Money and Pensions Service describes financial wellbeing as feeling secure and in control, being able to manage everyday finances and feeling prepared for unexpected expenses and longer-term needs.

For employees, greater financial understanding can help make unfamiliar or complicated decisions feel more manageable.

Someone who understands their pension arrangements, for example, may feel better equipped to plan for retirement. An employee considering their first mortgage may benefit from knowing what options are available and how the process works.

While financial education cannot remove every financial concern, it can help people feel more informed about the decisions ahead of them.

There is also an important connection with how employees perceive their employer.

When businesses provide support that reflects employees' wider needs, it demonstrates that their wellbeing matters beyond their immediate job responsibilities.

This can contribute to a more positive employee experience, particularly when the support is relevant, accessible and genuinely useful.

Of course, financial wellbeing alone won't determine employee engagement. Leadership, working conditions, career opportunities and fair remuneration remain essential.

 However, it can complement these existing priorities.

Are existing employee benefits meeting financial wellbeing needs?

Many organisations already provide a range of benefits designed to support employees.



Workplace pensions, healthcare schemes, flexible working arrangements and employee assistance programmes can all form part of a comprehensive benefits package.

However, providing benefits and ensuring employees understand their value are two different things.

Take workplace pensions as an example. Most eligible employees are automatically enrolled into a pension scheme, but that doesn't necessarily mean they understand how their contributions work or what their retirement income might look like.

Similarly, employees may have access to financial protection benefits without fully understanding what those benefits provide or when they might be relevant.

This creates an opportunity for employers to consider how financial education could strengthen their existing offering.

Rather than introducing entirely new benefits, businesses can help employees better understand what's already available, alongside providing information about wider financial matters.

This may be particularly valuable for organisations that have invested significantly in their benefits packages but are unsure whether employees fully appreciate or engage with them.

Financial wellbeing support doesn't need to replace existing initiatives. It can help connect them to the financial decisions employees face throughout their lives.

Different employees need different types of financial support

One of the challenges with employee benefits is ensuring they remain relevant across a diverse workforce.



Financial priorities naturally change throughout someone's career and personal life.

An employee in their twenties may be thinking about building savings or buying their first home. Someone with a growing family might be considering life insurance, a larger mortgage or protecting their household income.

Meanwhile, an employee approaching retirement may be more interested in understanding their pension arrangements and the options available for accessing their savings.

These differences matter when developing financial wellbeing initiatives.

A single workshop or resource is unlikely to address every employee's interests, but offering access to a range of topics can help make financial support more inclusive.

For example, employers might provide educational sessions covering:

• Understanding workplace pensions and retirement planning.
• Preparing for a first mortgage or remortgaging.
• Building savings and managing financial commitments.
• Protecting family finances against unexpected circumstances.
• Making informed decisions at different stages of life.

The aim isn't to assume what employees need, but to provide opportunities for them to explore financial topics relevant to their circumstances.

This also allows employees to engage with support at a time that makes sense for them, rather than expecting everyone to participate in the same activities.

Making financial wellbeing part of an engagement strategy

Introducing financial wellbeing support doesn't necessarily require businesses to develop a completely separate programme.

For many organisations, it can be incorporated into existing employee wellbeing, benefits and engagement activities.

A useful starting point is understanding which financial topics employees would value.

Anonymous surveys or feedback opportunities can help identify areas of interest without asking individuals to disclose personal financial information.

Employers can then consider suitable ways to make support available, whether through educational workshops, online resources or access to qualified financial professionals.

Communication is equally important.

Even well-designed benefits can be overlooked if employees don't understand what's available or how to access them. Clear explanations, regular reminders and practical examples can help make support more approachable.

Businesses should also consider how they measure the success of these initiatives.

Participation levels and employee feedback can provide useful insights, while broader engagement surveys may help employers understand how staff perceive the support available to them.

The focus should be on providing something employees genuinely value, rather than introducing another benefit simply to expand the package.

Supporting employees beyond their job roles

Employee engagement will always depend on a combination of factors, including leadership, workplace culture, opportunities and the relationships people develop at work.

However, employees don't experience these things in isolation from their personal lives.



Financial concerns can influence wellbeing and confidence, just as greater financial understanding can help people feel more prepared for important decisions.

For employers, recognising this connection presents an opportunity to make existing wellbeing and benefits strategies more meaningful.

By providing access to practical financial education and professional expertise, businesses can support employees through different life stages without taking responsibility for their personal financial decisions.

At Chesterton Grant, we help businesses explore ways to make financial wellbeing support more accessible to their employees. From financial education to professional guidance, our approach focuses on helping people better understand their options and make informed decisions.

If you're reviewing your employee benefits or looking for ways to strengthen your employee engagement strategy, get in touch with our team to discuss how financial wellbeing support could benefit your organisation.