Employee’s financial stress is one of the most overlooked challenges in the workplace today.
Rising living costs, stagnant wages, and financial insecurity are leaving millions of employees struggling and those worries don’t stay at home. They follow your people into the workplace, impacting their focus, performance, and overall well-being.
For employers, the costs are far from invisible. Financial stress translates into lower productivity, higher absenteeism, and greater staff turnover.
The good news? There are proven ways to recognise, address, and reduce money-related stress in your workforce.
This article shares ten practical strategies that HR leaders and managers can implement today, backed by the latest research and expert insights.
What Is Financial Stress?
Ever found yourself lying awake at night, thoughts racing about unpaid bills or unexpected expenses? That’s financial stress, the emotional and physical strain that comes from money worries.
Financial stress isn’t just about being in debt. It’s that knot in your stomach when checking your bank balance, the tension headache when thinking about retirement savings, or the anxiety that surfaces when unexpected costs arise.
In workplaces, this stress manifests in concerning ways:
- Difficulty concentrating on tasks
- Increased absenteeism
- Lower productivity
- Higher turnover rates
The scale of the issue is striking. 44% of UK adults (around 20.3 million people) are financially vulnerable in 2024, up from 38% just two years earlier (Fair4All Finance, 2024).
Psychologist at OpenUp, Britt Slief explains:
“Financial stress is more than a practical problem, it directly affects mental resilience. People who constantly worry about money often experience what I call ‘mental noise’. This drains energy, clouds decision-making, and makes even small daily choices feel overwhelming.”
Financial anxiety doesn’t discriminate by salary bracket either. From entry-level to executive positions, money worries can affect anyone, though the specific concerns might differ.
For employers, this isn’t just a personal challenge for staff; it’s a pressing organisational issue. Understanding what financial well-being means, and why it matters, is the first step to reducing stress and protecting productivity.
How To Recognise Financial Stress In Employees
Spotting employee financial stress early can make all the difference.
Like many health concerns, the signs often appear gradually, becoming more visible as stress intensifies. Early recognition gives employers a chance to act before problems escalate into absenteeism, burnout, or even staff turnover.
Early Warning Signs
At first, financial stress shows up in subtle ways that are easy to overlook:
- Loss of focus during meetings or tasks
- Unusual fatigue or mentions of sleep problems
- Increased irritability or emotional reactions
- Declining participation in team lunches or social events
- Decreased engagement in voluntary activities
These behaviours can easily be misattributed to other pressures, which makes identifying money worries challenging.
Yet they’re often the first signals that an employee is carrying the weight of financial anxiety into work.
More Advanced Indicators
As financial pressures mount, the signs become harder to ignore:
- Requests for salary advances or changes to payment schedules
- Frequent absences, especially around bill due dates
- Taking on excessive overtime or even second jobs
- Direct mentions of financial difficulties to trusted colleagues
The challenge is that money remains a taboo subject in many workplaces. Research shows that 90% of employees don’t discuss money worries with their employer, often because of fear, stigma, or shame (Work & Well-Being, 2023).
Britt highlights the hidden impact:
“In conversations with clients, I often see how money worries create a vicious cycle. An employee may lose sleep over bills, arrive tired at work, make mistakes, and then feel guilty, which only deepens the stress. Without early intervention, financial worries quietly erode both well-being and performance.”
By the time financial well-being indicators become obvious, employees may already feel significantly distressed. For employers, this means that creating safe, stigma-free ways to talk about money is crucial to catching issues before they spiral.
10 Tips To Help Employees With Financial Stress
Taking action to reduce your employees financial stress doesn’t require a complete overhaul of your benefits package. Small, practical steps can make a big difference to well-being. .
Here are ten practical strategies for employers:
1. Make Support Visible and Normal
Normalise money conversations by weaving financial well-being into company communications, newsletters, intranets, team meetings. Share resources from trusted UK organisations such as MoneyHelper, CIPD, and local councils.
Britt explains:
“Many employees believe they are the only ones struggling. Simply seeing that support is available and normal can reduce shame and encourage people to take the first step.”
2. Train Managers to Recognise and Respond
Managers are often the first to notice financial stress in their teams. Give them practical tools to recognise signs such as fatigue, absenteeism, or withdrawal, and provide training in how to respond.
A widely used 6-step protocol can help: invite, normalise, listen, offer options, make a plan, and protect privacy.
Britt highlights:
“Leaders don’t need to be financial experts. What matters is empathy. Listening without judgement and knowing where to refer employees to, can break the stigma and lead to real change.”
3. Create a Low-Threshold Support Channel
Offer safe, confidential ways for employees to raise money concerns. For example, a dedicated email inbox, a Teams channel, or an anonymous form. Employees are far more likely to seek help if they trust their privacy is protected.
4. Ensure Stable and Consistent Payroll Hygiene
Payroll may seem routine, but even small delays can trigger significant stress. In early 2023, around 50% of UK households reported struggling to pay energy bills (NatCen, 2023).
For employees living on the edge, predictable payroll is more than admin, it’s a lifeline. Clear advance policies also give staff dignity and options when short-term difficulties arise.
5. Offer Confidential Financial Coaching
Confidential one-to-one coaching gives employees impartial, practical guidance on budgeting, saving, and planning for major life events. OpenUp’s certified financial coaches provide support that is independent, preventative, and focused on instilling great financial habits, not on selling financial products.
Britt:
“Confidentiality is key. People open up only when they trust the process. Once they do, the relief is immediate, often before a single financial change is even made.”
6. Offer Regular Financial Checks
Encourage voluntary financial health checks to help employees understand their situation and plan ahead. With 33% of UK adults holding less than £1,000 in savings (FCA, 2025), many employees live without a safety net.
Confidential assessments paired with guidance can prevent small concerns from escalating into crises.
7. Include Financial Well-Being in Your Onboarding Process
From day one, show new employees that financial well-being is part of your culture. Share information on available resources, workshops, and coaching during onboarding. This early signal helps break stigma before problems arise and demonstrates your commitment to your people’s well-being.
8. Offer Trainings and Workshops
Short, accessible training sessions on topics like budgeting, pensions, or debt management empower employees without overwhelming them.
Complement these with interactive workshops. These should ideally be run by a partner you trust. This will empower your employees with the confidence they need to take steps towards financial well-being.
9. Support Vulnerable Groups
Certain groups are more exposed to financial stress, including renters, single parents, and young professionals. For example, 67% of 18–34 year olds report worrying about being able to afford food (Mental Health Foundation, 2022).
Tailor interventions to these groups with targeted workshops, coaching, or resources, showing employees that their specific challenges are recognised.
10. Measure Outcomes and Keep Improving
Britt highlights:
“What gets measured gets managed.”
Track absenteeism, presenteeism, and programme participation to evaluate impact. Employers who invest in financial and mental well-being see strong returns: every £1 spent delivers £3.70–£5.00 in ROI (Deloitte, 2024).
Anonymous surveys also reveal where interventions are working and where to refine.
The Impact Of Financial Stress On Organisations
Employee financial stress isn’t just a personal issue, it has a measurable impact on business performance.
When employees bring money worries into work, organisations pay the price in lost productivity, higher absenteeism, and greater turnover.
Productivity Drain
Financial stress consumes mental energy. Research shows that financially stressed employees lose an average of 2.6 work hours per week dealing with personal finance issues during work hours , that’s 156 hours a year (CEBR, 2023).
Beyond the time lost, financial worries reduce focus, creativity, and problem-solving capacity, draining productivity even when employees are physically present.
Attendance And Retention Issues
Money worries don’t just distract, they also affect physical and mental health.
Stress-related illnesses contribute to higher absence, with employees under severe financial pressure taking on average 4.7 extra sick days per year (TNO, 2024).
Meanwhile, presenteeism, showing up but working below capacity, quietly eats into performance.
Turnover is another costly outcome. Employees facing financial stress are twice as likely to look for a new job, creating recruitment and training expenses that can equal 90–200% of a role’s salary (PwC, 2023).
Cultural Ripple Effects
Perhaps the most underestimated cost is cultural. When team members are preoccupied with survival, engagement drops, collaboration suffers, and trust erodes.
A workplace culture of financial anxiety undermines morale and loyalty, making it harder to retain top talent.
The overall price tag is sobering: one UK employee with financial stress costs employers an average of £13,000 per year in lost productivity, absenteeism, and turnover (CEBR, 2023). Multiply this across a workforce, and the scale becomes impossible to ignore.
Psychologist Britt puts it simply:
“Money worries don’t clock out when people arrive at work. They shape energy levels, focus, and even relationships with colleagues. Employers who invest in financial well-being see not only healthier teams, but also stronger business results.”
How Financial Coaching Can Help Your Employees Well-Being
Workshops can help raise awareness, but real transformation often comes through personalised support.
Financial coaching provides employees with confidential, one-to-one guidance from certified experts, giving them space to address money worries in a safe, practical way.
Unlike general advice, financial coaching is preventative and tailored. Sessions can cover budgeting, saving, debt management, pensions, or preparing for major life events.
This approach is especially powerful in the UK, where 70% of employees say they worry about money (Wellbeing Lead Academy, 2024).
Britt provides a comforting perspective:
“Many people don’t know where to start when it comes to money. They feel overwhelmed or ashamed. Coaching creates a safe space to talk openly, gain insight, and take small steps forward. That alone can lift an enormous weight off someone’s shoulders.”
A Case in Point
Take Sarah, a marketing manager in London. Rising childcare costs and higher mortgage rates left her exhausted and distracted at work. Through her employer, she accessed six sessions with a financial coach.
Within weeks, Sarah had a clearer budget, had renegotiated a few bills, and set up an emergency savings plan.
The result? Better sleep, more focus, and renewed confidence.
“I was spending hours each week worrying about money,” Sarah explains. “My coach helped me create a realistic plan. The sessions I had gave me the peace of mind to refocus my energy on what brings me joy”.
Why Employers Should Care
The business case is compelling. Companies that introduce financial coaching as part of their employee well-being strategy report:
- 15% lower turnover (GRiD/Wagestream, 2024).
- 4.7 less sick leave days per employee (CEBR, 2023)
- A return on investment of £3.70–£5.00 per £1 spent (Deloitte, 2024).
Financial coaching doesn’t just reduce stress, it builds resilience, improves employee loyalty, and strengthens workplace culture.
It’s a type of scratch my back and I’ll scratch your back scenario between employee and employer. A win-win scenario.
Break the Taboo Around Money Discussions
Shame is the biggest reason employees hide their financial worries. Research shows that only 3% of adults talk openly about their finances (Deloitte, 2024).
Yet an open conversation can make all the difference.
A 6-Step Conversation Protocol
- Invite in a safe setting: “I’ve noticed you seem a bit more tired than usual. Is it something money related? Just know that everything we discuss stays confidential and between us.”
- Normalise: “It’s normal that you’re feeling like this, so many people go through this. Talking about it is a brave step. I’m proud of you.”
- Listen and acknowledge: “I hear you, thanks for sharing. Let’s see what support we can provide for you that can help.”
- Offer options: Refer to what internal resources you have that can support. Additionally, consider offering confidential support through financial coaching and psychologists.
- Make a plan: Agree on one small, achievable step and schedule a follow-up within two weeks.
- Protect privacy: Confidentiality gives your people the confidence to open up and work towards a healthier mindset. Safeguard this at all costs.
➡️ This approach makes a difficult subject discussable, without judgement.
How Financial Coaching Helps With Money Stress
Financial coaching can be a powerful way to help your employees regain control and peace of mind.
What it is: confidential one-to-one sessions with certified experts focused on insight, clarity, and action.
What it isn’t: investment or legal advice, these boundaries are clear.
When should you use it: if an employee repeatedly requests salary advances, faces wage garnishment, or simply feels overwhelmed and doesn’t know where to begin.
How it can help: employees experience less stress, create a plan, and gain an overview of their income and expenses.
➡️ Financial coaching is a low-threshold way to give your employees peace of mind and perspective.
How a Financial Health Check Can Help
A financial health check helps your employees get a clear overview of their situation and take proactive steps.
What’s included:
- Overview of income and fixed expenses
- Tailored advice to reduce costs
- Saving strategies and building emergency buffers
- Awareness of financial risks (e.g. bereavement, pensions)
- Insight into eligibility for benefits or allowances
Britt provides the following insight:
“Insight gives you back control and that control creates calm. From a psychological perspective, it’s often not just the situation that causes stress, but the uncertainty. A financial check can reduce that uncertainty and give people breathing space.”
Why it matters in the UK:
- 33% of adults have less than £1,000 in savings, while one in ten have no cash buffer at all (FCA, 2025).
- 62% of renters lack emergency savings, leaving them especially vulnerable (FCA, 2025)
- 42% of adults expected to save nothing in 2023 (ONS, 2022).
➡️ With regular checks, employees can identify risks early and take preventative action.
Working Together Towards Financially Healthy Teams
Financial stress begins to disolve when you start taking small but important steps for your people.
By making space for the topic, you show up for your employees as genuine people, dedicated to their financial and overall well-being.
Britt, provides us a final remark to remember:
“When organisations make money worries discussable, employees feel recognised as complete people. That sense of recognition not only improves their well-being but also strengthens their engagement and loyalty.”
At OpenUp, we provide confidential one-to-one sessions, masterclasses, and coaching.
Our experts are available within 36 hours, in multiple languages, and always anonymously. Employers receive only aggregated insights, never personal data.
➡️ Curious how financial coaching can strengthen your workplace? Learn more about how OpenUp can support your employees.
FAQs about Employee Financial Stress
What is financial well-being?
Financial well-being means having a sense of security and control over your financial situation, both now and in the future. It’s about being able to meet day-to-day expenses, cope with unexpected costs, and plan for longer-term goals like retirement. In the UK, only 33% of adults have more than £1,000 in savings, showing how fragile financial resilience can be (FCA, 2025). For employers, supporting financial well-being helps reduce stress, improve engagement, and foster loyalty.
What does financial stress mean?
Financial stress refers to the mental, emotional, and sometimes physical strain caused by money worries. It can arise from debt, lack of savings, rising costs, or financial uncertainty. In the UK, one in two adults (28.4 million) reported feeling more anxious or stressed due to the rising cost of living (FCA, 2025). Unlike short-term money problems, financial stress can persist even when employees are technically managing their bills.
What does financial stress mean?
Financial stress refers to the mental, emotional, and sometimes physical strain caused by money worries. It can arise from debt, lack of savings, rising costs, or financial uncertainty. In the UK, one in two adults (28.4 million) reported feeling more anxious or stressed due to the rising cost of living (FCA, 2025). Unlike short-term money problems, financial stress can persist even when employees are technically managing their bills.
How many UK employees experience financial stress?
Financial stress is widespread in the UK workforce. 70% of employees worry about money (Wellbeing Lead Academy, 2024). Stress is especially high among renters, single parents, and younger employees, with 67% of 18–34s worried about affording food (Mental Health Foundation, 2022). For HR leaders, this means financial stress is not a fringe issue, it affects the majority of teams.
How does financial stress affect employees?
Financial stress impacts employees on multiple levels: lower concentration, increased absenteeism, and poorer mental and physical health. It can cause sleep problems, anxiety, and disengagement at work. Research shows 29% of UK workers say money worries reduce their productivity (Unum, 2022). Left unaddressed, it can spiral into burnout, long-term sickness absence, and even higher staff turnover.
What workplace signs most clearly indicate employee financial stress?
Early signs include reduced concentration, fatigue, irritability, or withdrawing from workplace social activities. Later, clearer signals may appear such as requests for salary advances, wage garnishments, or frequent absenteeism. Managers and HR teams are often the first to spot these behaviours, making training crucial. Spotting these early creates a chance for timely support before stress escalates.
How does financial stress reduce employee productivity?
Financial stress leads to distraction at work, as employees spend time and mental energy worrying about money instead of focusing on tasks. Studies suggest financially stressed employees lose an average of 2.6 work hours per week to money concerns, equating to 156 hours per year (CEBR, 2023). Stress also impairs decision-making, teamwork, and motivation, all of which erode productivity over time.
Do managers need to worry about employees’ financial stress?
Yes, financial stress is not just a personal issue but a workplace challenge. 63% of UK employers now recognise the link between financial well-being and performance (Pensions Age, 2024). Managers who acknowledge this can foster trust, reduce stigma, and encourage employees to seek support. Ignoring it risks lower engagement, higher turnover, and preventable absenteeism.
What short-term support can employers implement now?
Employers can take immediate steps such as ensuring predictable payroll, offering clear advance policies, and referring employees to trusted resources like MoneyHelper or CIPD guidance. Quick wins also include setting up a confidential support channel and communicating openly about available help. Even these small interventions reduce stigma and show employees they are not alone.
How can I create a safe space for employees to discuss money concerns?
Safe conversations start with normalising money worries as common and non-judgemental. Training managers to listen empathetically and use structured protocols can make discussions less intimidating. A widely used 6-step protocol can help: invite, normalise, listen, offer options, make a plan, and protect privacy. This reduces shame and helps employees access support sooner.
What financial wellness programs have proven measurable ROI for employers?
Research shows that every £1 invested in financial well-being delivers £3.70–£5.00 in returns through higher productivity, reduced absenteeism, and lower turnover (Deloitte, 2024). Effective programs include financial education, health checks, and confidential coaching sessions. Employers who implement these initiatives see both immediate relief for staff and long-term cultural benefits.
What role can financial coaching play in reducing financial stress?
Financial coaching offers employees confidential, impartial guidance on budgeting, saving, and planning for major life events. Unlike product-focused advice, coaching builds clarity and resilience. Employees who use it report less stress, better sleep, and more focus at work. At OpenUp, financial coaching is integrated into the broader well-being platform, making it easy and stigma-free to access support.
