Financial stress is one of the most pressing challenges facing employees today. Rising living costs, growing debt levels and the increasing complexity of pensions, childcare and long-term planning all mean that money worries are never far from people’s minds.
For employers, the impact is clear. Studies consistently link financial concerns to reduced productivity, higher absenteeism, presenteeism and ultimately, poorer retention.
Yet, for many businesses – particularly SMEs – knowing how to address financial wellbeing can be daunting.
A pay rise may not always be feasible, but there are still meaningful ways to provide support. A well-rounded financial wellbeing strategy can help employees feel more confident, in control and supported – and in turn, employers benefit from a more engaged, resilient workforce.
Here we explore four practical ways to make a difference, with money coaching running through each as a powerful tool to move employees from stress to confidence.
1. Address debt without stigma
Debt remains one of the most common and crippling causes of financial stress.
For employees, the weight of unsecured debt, from credit cards, overdrafts, or personal loans, can be overwhelming and the shame attached to it often prevents people from seeking help.
Left unaddressed, this burden doesn’t just impact personal lives, it spills into the workplace in the form of distraction, anxiety and lower productivity.
Employers have an important role to play in breaking down the stigma. By providing access to structured debt support services, whether through employee assistance programmes, external partnerships, or voluntary benefits platforms, organisations can give their people the tools to regain control.
What matters most is creating a safe and confidential pathway, so that employees feel able to ask for help without fear of judgement.
Coaching can make this support more powerful. Money coaches work with individuals to set achievable goals, create repayment plans and reframe how they think about debt. For employers, facilitating access to coaching can be a low-cost, high-impact way to help employees tackle one of the biggest barriers to wellbeing.
2. Make benefits work harder
While many employers already offer a range of financial benefits, research suggests employees often fail to take full advantage of what is available to them. The reasons vary from lack of awareness and poor communication to uncertainty about how benefits apply to individual circumstances.
Whatever the cause, underuse means that both employees and employers miss out on the full value of the investment.
Helping employees make smarter use of existing benefits can be one of the simplest ways to strengthen financial wellbeing.
Salary sacrifice arrangements for pensions and childcare, for example, can provide significant tax efficiencies. This is particularly valuable for employees in the £100,000-£125,140 income bracket, where additional pension contributions can help reduce the tapering of the personal allowance – a strategy that can boost take-home and retirement savings.
Equally important is how these benefits are communicated. Dense technical documents rarely inspire action. Framing benefits in terms of human value, showing how they improve everyday life, reduce costs or free up future income makes them more accessible and meaningful to employees.
Here too, coaching adds a personal dimension. A coach can help an employee understand how best to apply these benefits in the context of their own financial goals. Whether it’s showing a parent how childcare vouchers can stretch further or guiding a mid-career employee on tax-efficient pension contributions, coaching provides the clarity that generic communications cannot.
3. Build financial confidence through coaching
While debt support and smarter benefits use are important, financial wellbeing is ultimately about more than problem-solving. It’s about building long-term confidence and resilience, and this is where coaching comes into its own.
Unlike one-size-fits-all financial education, coaching is personal, practical and forward-looking. A coach works with employees to understand their unique situation, whether that’s managing household budgets, balancing pension contributions or navigating childcare costs. They help employees develop a healthier mindset and stronger relationship with money.
For many people, this can be transformational. Someone who once felt paralysed by financial decisions can move towards clarity and confidence, making proactive choices that support their future.
For employers, the benefits extend far beyond the individual. A financially confident workforce is more focused, less distracted and more engaged.
Coaching is also flexible. It can be delivered one-to-one, in group settings or via digital platforms, making it accessible for SMEs as well as larger organisations.
4. Foster an open culture around money
Perhaps the biggest barrier to financial wellbeing is silence. Money has long been one of the last workplace taboos, with many employees reluctant to talk openly about their challenges.
Employers can help break down this barrier by fostering a culture that normalises conversations about financial wellbeing.
This starts with visible leadership support. When senior leaders acknowledge that financial pressures are a real and common challenge, it sends a powerful signal that it’s safe to speak up. Training managers to spot the signs of stress and to signpost sensitively to support services also helps to create the psychological safety employees need.
Part of that openness can include greater transparency around pay and progression. For many organisations, salaries remain a sensitive subject – one of the reasons money continues to be a workplace taboo. While full transparency may not always be practical, ensuring employees understand pay structures, grading frameworks and how progression works can help to build trust and reduce uncertainty.
Regular awareness campaigns, financial wellbeing days or webinars can reinforce the message that money is not off-limits. Sharing anonymised employee stories, where someone accessed support and made real progress, can further normalise the conversation and demonstrate that change is possible.
Confidential coaching again complements this cultural shift. Employees who may not feel comfortable disclosing money worries to a manager can still access trusted, one-to-one guidance in a safe space. Over time, this helps to build a workplace environment where money is less of a hidden stressor and more of a shared conversation.
Confidence is the real bottom line
With rising living costs and increasingly complex financial decisions, employees need more than pay to feel secure and confident. By addressing debt without stigma, helping employees make better use of benefits, embedding financial coaching and fostering an open culture around money, employers can create a supportive environment where people thrive.
These steps needn’t be costly and the payoff can be significant – improved engagement, reduced absenteeism and stronger retention.
The right support can move employees from financial stress to confidence, and when that happens, everybody benefits.
Employer Checklist: Is your workforce financially confident?
To help you put these ideas into practice, here are four quick questions every employer should ask when reviewing their approach to financial wellbeing:
Do our employees know where to turn for confidential help with debt or money worries?
Are we making it easy for employees to understand and maximise the value of our benefits?
Have we considered offering access to financial coaching to personalise support?
Are we creating an open culture where talking about money is normalised, not stigmatised?
If you answered “not yet” to any of the above, there are opportunities to strengthen your financial wellbeing strategy.