Looking back over five years of financial change: Empowering employees through employer support

Over the last five years, the landscape of financial health has evolved significantly.

Our research data collected during this time provides a comprehensive look at how individuals feel about their financial wellbeing, the challenges they face and the crucial role employers play in supporting their workforce. 

This blog shines a light on these changes and offers practical tips for HR and reward professionals to foster a supportive workplace environment. 

The changing face of financial health 

Our comprehensive research reveals a diverse range of experiences and sentiments regarding financial health. Key highlights include: 

• Savings are shrinking - How long would your savings last if your income stopped today? For over a third of people (36%), the answer is less than a month, some have no savings at all. While a  few could go a year or more, the trend over the last five years is clear: savings cushions are getting thinner. It’s a stark reminder that encouraging and building financial resilience through better money management and education isn’t just helpful, it’s essential. 
• Debt is deepening - Debt tells another story of growing pressure. While 30% of people are debt-free, 1 in 7 owe over £10,000, and some are facing debts north of £20,000. Credit card use and borrowing from family are both on the rise, quick fixes that can turn into long-term traps. This growing reliance on short-term borrowing and the high cost of debt when using credit cards for example is a red flag for financial wellbeing.
• Retirement confidence is wavering - When it comes to retirement, confidence is a mixed bag. Around 40% feel in control of their future, but the rest are unsure or anxious. During the past five years, more people are questioning whether they'll be able to retire comfortably. That uncertainty highlights a pressing need: accessible, practical retirement planning tools that work for everyone. 

The employer's role in financial wellbeing 

Employers have a pivotal role to play in supporting their employees' financial health. Here are some key areas where employers can make a difference: 

• Make money make sense - Financial education isn’t a luxury, it’s a must-have. Giving employees access to practical workshops and resources on budgeting, saving, credit and financial resilience can empower them to take control of their money – not the other way around. 
• Retirement isn’t just a later-life issue - Retirement planning shouldn’t start at 60. Helping employees understand their options earlier, through pension tools, clear communication and regular check-ins can boost confidence, enhance wellbeing and improve outcomes. It’s about building futures, not just managing exits.
• Tools that talk their language - From budget calculators to financial coaching, the right tools help people manage today while planning for tomorrow. Make sure employees can access these resources when and how they need them. 
• Supportive benefits - Support isn’t just about salary. Think salary advances, affordable loans and on-site financial clinics - practical benefits that offer both immediate relief and lasting support. These can be a game-changer when life throws a curveball.

Identifying vulnerable groups 

Certain groups are more vulnerable and may require additional support: 

• Lower-income earners: Individuals earning less than £20,000 a year often struggle with savings and debt. Tailored financial education and support can help them build a more secure financial foundation. 
• Those with health issues: Employees dealing with physical or mental health conditions themselves, or those supporting family members suffering with physical or mental health conditions often face additional financial stress. Providing targeted support and resources can alleviate some of these pressures.
• Young workers: Younger employees, particularly those in their 20s, often feel less confident about managing their finances. Mentorship programs and financial planning workshops can be particularly beneficial for this group. 

Top tips for HR professionals 

• Conduct regular financial health check-ins: Regularly survey your employees and use data to understand their financial health and identify areas where they need support. 
• Embed financial education into the employee experience: Offer workshops and resources on financial management, tailored to different life stages and income levels. 
• Enhance retirement planning resources: Provide clear, accessible information about retirement planning and offer tools to help employees plan for their future. 
• Offer flexible benefits: Consider benefits that can provide immediate financial relief, such as salary advances and workplace finance. 
• Create a supportive environment: Normalise money conversations in the workplace. Whether through manager training, anonymous support channels or financial wellbeing champions, create an environment where employees feel safe to seek help.  

By taking these steps, employers can play a crucial role in enhancing their employees' financial wellbeing, leading to a more engaged, productive and loyal workforce.