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Financial insecurity is a growing concern for employees, impacting both their wellbeing and work performance. The 2025 Drewberry Employee Benefits and Workplace Satisfaction Survey highlights a stark reality: 26% of employees wouldn’t last a month on their current savings.
For many employees, financial insecurity isn’t just about struggling to make ends meet, but it creates a ripple effect that influences mental health, job satisfaction, and productivity. For employers, the message is clear: supporting financial resilience isn’t just a nice-to-have, it’s a strategic priority with a direct impact on business performance.
Worryingly, 1 in 4 employees admit they wouldn’t be able to manage for more than a month on their savings if they were unable to work.
The rule of thumb is to have 3–6 months’ worth of savings—but a quarter of the UK workforce are nowhere near that. For many, even a short period without income could put real pressure on their finances.
With no real financial cushion, it’s not surprising that employees are worrying about money, and it’s affecting their lives both inside and outside of the workplace.
Our survey found that 41% of employees cite money worries as their biggest personal stressor. This was followed by:
As an employer, it’s in your best interest to help ease this financial stress, after all, it’s already having a knock-on effect on employee performance and productivity.
80% of employees admit that stress impacts their productivity at work, making financial insecurity a business problem as much as a personal one.
When employees are distracted by financial worries or other sources of stress, they’re less engaged, more likely to make errors, and less effective in their roles.
This shows that stress isn’t confined to an employee’s home life; it follows them into the office, impacting morale, decision-making, and even absenteeism. Without proactive employer support, this stress can lead to burnout, lower job satisfaction, and ultimately, higher turnover rates.
It’s not just short-term financial pressures weighing on employees—long-term concerns about retirement are also growing. Our 2025 Workplace Pensions Survey found that they’re worrying about retirement. Not only do they fear not being able to retire when they want to, but they’re concerned about running out of money once they get to their later years.
Your pension scheme is a crucial part of employees’ long-term financial security, as 76% are relying on their Workplace Pension to fund the majority of their retirement income. But despite this, 68% don’t feel that their Workplace Pension pot will be enough to keep them comfortable.
Enhanced pension contributions remain one of the most sought-after benefits among employees—and the good news is, there’s a cost-neutral way for employers to offer more.
By introducing a Salary Sacrifice pension arrangement (also known as Salary Exchange), employees agree to exchange part of their gross salary for increased pension contributions. This reduces both their own and the employer’s National Insurance contributions, creating savings that can be reinvested to enhance employer contributions without increasing overall costs.
It’s a smart, sustainable solution—a win–win that supports employees’ long-term financial wellbeing while helping your business offer a high-value benefit in a cost-effective way.
By empowering employees to make better financial decisions and backing this with the right benefits you can make a real, lasting impact on their financial futures.
Nick Nelms
Senior Consultant, Employee Benefits
It’s no surprise that better pay is the top request for reducing stress, with 50% of employees identifying it as a key factor.
However, salary alone isn’t enough. A well-rounded benefits package can play a crucial role in easing financial pressures—offering employees greater peace of mind and a stronger sense of long-term security. (Here’s what employees REALLY want in 2025.)
It’s not just about pay—employees want benefits that offer real financial peace of mind. Supportive perks like Income Protection, Critical Illness Cover, and Death in Service provide security when it’s needed most, while remote or hybrid working helps cut commuting costs.
By thinking strategically, employers can ease financial stress and boost loyalty—not just by raising salaries, but by offering smart, meaningful benefits that make a real difference.
Prioritising employee financial stability is a smart move for employers, but it can be daunting to know where to start. Below are some simple, tangible examples of how to make financial wellbeing a priority for your organisation.
Our survey found that while salary may not be the #1 cause of happiness, it’s the main driver for dissatisfaction if it’s too low. 50% of employees also said that better pay and benefits would help tackle their workplace stress. As an employer, there are several practical steps you can take to address this:
With the cost of living rising, providing meaningful financial support through salary and benefits is a key factor in employee retention and satisfaction.
One of the simplest yet most effective ways to boost long-term financial wellbeing is by making your Workplace Pension as impactful as possible. In fact, employees saving just 1% more can create a pension pot that’s 25% bigger.
Better still, boosting pension contributions doesn’t have to be costly. In fact, by using Salary Exchange, you can reduce your business’s National Insurance bill and enhance employer contributions at no additional cost. Read more about cutting your NI bill with Salary Exchange.
Many employees don’t fully understand the financial benefits available to them. To bridge this gap, employers should:
Survey data reveals that only 11% of employees receive regular communication about their benefits, meaning many workers may not be aware of the financial support already available to them. Learn why your employee benefits aren’t making the impact they should.
Richard Noble
Senior Consultant, Employee Benefits
Financial stress can have a huge knock-on effect on your employees’ wellbeing. It can affect people not only mentally, but physically, too. Providing financial education can give them the information and tools to take control.
As an employer, you can play a key role in helping your employees become financially educated. Doing so not only helps them, but can help you, too. Read our Complete Guide To Financial Education In The Workplace.
Another way to help employees financially is by implementing flexible working arrangements that reduce living costs. The data shows that:
By offering hybrid working, compressed workweeks, or flexible scheduling, employers can help employees reduce commuting and childcare costs, further alleviating financial stress. Read our Complete Guide To Flexible Working.
Helping employees build financial security isn’t just about offering a higher salary – it’s about providing the tools and resources to ensure long-term stability. By addressing financial stress head-on, employers can cultivate a more focused, productive, and satisfied workforce in 2025 and beyond.
But setting up and maintaining your wellbeing benefits requires a decent bit of admin, which quickly becomes time consuming. We do the heavy lifting for you, giving you more time to focus on what matters.
We live and breathe employee benefits, doing this day in-day out for businesses just like yours. Looking at the big picture, we get to know your unique workforce and benchmark your offering against competitors.
Give us a call on 02074425880 or email help@drewberry.co.uk to talk through your options with one of our friendly consultants.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
