New research from WEALTH at work reveals that financial worries are significantly affecting UK workers in the workplace. Released during Debt Awareness Week (24th – 30th March), the findings highlight the impact of money worries on employees’ performance, motivation and overall wellbeing.
The study, based on a survey of over 2,000 workers, found that almost a quarter (23%) of employees have had to borrow money from family and friends in the past year. Nearly one in five (18%) have taken on debt, while 28% have worked additional overtime. More than one in ten (13%) have taken on a second job to manage their financial situation.
Workers’ top financial concerns include not having enough savings for unexpected costs (42%), being unable to save for the future (37%), struggling to pay essential living expenses (34%) and managing debt (29%).
Financial Stress Affecting Workplace Performance
The pressure of financial insecurity is having a direct effect on employees’ performance. Increased stress levels (40%), mental exhaustion (35%) and reduced motivation (26%) were among the most common issues reported. A quarter (25%) of workers said they experienced physical exhaustion, while 22% admitted that financial worries were reducing their ability to focus at work. One in ten (10%) said their financial situation had led to increased sick days.
Despite the impact on workplace wellbeing, only 13% of employees said they would feel comfortable discussing money worries with their employer. Older workers, particularly those aged 55 and over, were the least likely to seek financial support, with just 5% saying they would reach out for help.
Jonathan Watts-Lay, Director at WEALTH at work, commented, “It seems financial worries have become the new normal. With almost 14.6 million UK adults not coping financially or finding it difficult to cope, many are looking for ways to help ease the strain on their finances.”
Building Financial Resilience in the Workplace
While many employees are struggling, 43% remain optimistic that their financial situation will improve. If given spare cash, 42% would prioritise saving for emergencies, while 35% would pay off debt. A further 34% would use it for essential bills, and 26% would set it aside for retirement.
Watts-Lay noted that financial concerns are not limited to those who are unemployed. “Whilst being employed has traditionally been associated with financial stability, research from StepChange showed that 44% of those seeking debt advice were in full-time employment. This reinforces that money worries are also a workplace issue. When struggling with money, people are less productive when they are in work, can be tipped into financial vulnerability and are at greater risk of predatory behaviour from scammers.”
Employer Support Can Help Reduce Financial Stress
The research suggests that employees who have a financial safety net are generally less anxious and experience greater life satisfaction. Watts-Lay said, “Savings can help improve financial resilience by removing the need to borrow and preventing hardship by providing access to funds when needed.”
To support employees, many organisations are introducing financial education programmes, workplace savings schemes such as ISAs and access to financial guidance. Watts-Lay believes this kind of support can make a significant difference. “Employers can help workers understand their finances, including how to save money, manage debt and prepare for retirement.”
He added that reducing the stigma around money worries is key. “With so few people saying they would actually seek help from their employer, the onus is on employers to remove the stigma around money worries and offer easily accessible support to all staff. Through financial coaching, many people discover important financial lessons that make a considerable difference to their finances and overall wellbeing. This can lead to increased productivity and reduced absenteeism in the workplace.”
As financial pressures continue to impact employees, workplace support is becoming increasingly important. By offering financial education and resources, employers can help workers build resilience and improve overall workplace wellbeing.
