By Kelly Parsons, Head of DC Pensions Proposition
Financial stress is a significant challenge facing today’s employees, and as a result, performance is suffering. Research shows that 29% of employees say that financial worries negatively affect their productivity and 40% feel physically tired or have low energy from worrying about financial pressures.
These pressures inevitably spill into the workplace – impacting employee productivity, engagement, absences, presenteeism and overall organisational resilience.
For employers focused on stability, productivity and employee wellbeing, financial wellbeing has shifted from ‘nice-to-have’ to a strategic business priority. It supports your people during uncertain times while helping your organisation get more from the employee benefits you already invest in.
In this article, we explore how financial wellbeing is an essential pillar of employee wellbeing – and how effective financial education can strengthen your employees’ confidence and engagement and support your organisation’s overall performance.
If your organisation isn’t part of the 34% already offering financial education, this may be your moment to explore why it matters.
Employee financial stress directly affects performance
When employees are preoccupied with personal financial worries, it can be harder for them to stay focused, meet expectations or make effective decisions. This often leads to reduced output, inconsistent performance and higher levels of presenteeism.
By helping employees build financial confidence, you can give your people the clarity and mental bandwidth they need to perform at their best – both day to day and in high-pressure moments.
A more financially confident workforce is more engaged
Employees who feel supported and secure are naturally more committed and engaged. Offering financial education signals that you genuinely care and understand the pressures employees face outside their role.
Investment in financial education fosters employee loyalty, strengthens morale and encourages a culture where your employees feel valued and motivated to contribute fully.
“Financial worries don’t just affect people at home. They follow them into work. When employees feel more confident about their finances, everything from focus to decision-making improves.”
Rob Hillock, Senior Manager, Personal Financial Planning
Financial education amplifies the value of existing benefits
Many organisations already commit sizeable budgets to pensions, healthcare, employee wellbeing and lifestyle benefits. Yet without the right guidance, employees may struggle to navigate or make meaningful use of these resources.
Financial education helps your people understand how the benefits they already have fit into their broader financial lives. This increases uptake, supports better decision-making and helps make sure your employees are making the most of the support available to them.
In other words, financial education helps maximise the impact of your organisation’s spend on employee benefits and return on investment.
The most effective financial wellbeing programme starts with insight
Understanding employee needs is the foundation of any successful programme. Insights into financial concerns, lifestage pressures and engagement patterns will help you shape a programme that is relevant, targeted as well as aligned with your organisation’s culture.
This foundation ensures that the support you provide addresses the issues that are most likely to impact your employees’ performance and wellbeing.
Accessible support meets employees where they are
Financial education is most impactful when it is easy to access. Blending digital tools, on demand content, workshops, webinars and informal conversations ensures support is available to all employees – regardless of role, working pattern and environment or financial confidence.
This flexibility creates an inclusive approach that your people can engage with at their own pace and learning style.
Support that adapts to life stages increases long-term impact
Your employees’ financial needs will evolve over time so it should be no surprise that financial education is most impactful when it supports people during key life stages and events.
Whether someone is early in their career, saving for a house, navigating childcare costs, planning for retirement or facing unexpected change – timely guidance reduces uncertainty and stress, and empowers them to make better decisions.
When financial education supports employees through these transitions, it becomes a meaningful part of the employee experience – not just a one-off initiative.
Financial planning support that empowers your people
Help your employees feel more in control of their financial future. Our personal financial planners provide clear, practical guidance — from single sessions to ongoing support — tailored to individual goals.
By giving your people access to expert financial planning (whether employer‑funded or employee‑paid), you boost confidence, reduce stress and strengthen morale, increase productivity and foster retention. It’s a simple way to show you’re invested in their long‑term wellbeing.
Read more: Why personal financial advice is worth more than you think
Consistency build trust
Consistency is key to a successful programme. When financial education becomes part of your organisation’s rhythm it builds trust with your employees and strengthens the programme’s impact over time.
Clear, jargon-free communication delivered to your employees throughout the year fosters confidence and keeps them engaged – especially during key moments such as benefit windows and major life events.
A strategic tool for long-term organisation strength
Offering financial education to your employees goes far beyond personal budgeting support. It is a strategic lever that supports your organisation’s long-term strength because it helps improve productivity, reduce absence, strengthen employee engagement and enhance retention.
With almost a third of employees reporting that financial stress affects their productivity, the case for action is compelling. When employees feel more in control of their personal financial lives, they are more capable to contribute positively to their working lives.
For forward thinking employers, financial education is a cornerstone of a resilient, high-performing workforce.
Strengthen your employees’ financial wellbeing
We help employers offer employee financial wellbeing programmes that strengthen engagement, productivity and long-term resilience.
