More than two-fifths (42 percent) of UK workers say that financial wellbeing is still their top concern, while 89 percent of employees report they feel like ‘the cost-of-living crisis will never end’.
These were some of the key findings of the ‘Financial Resilience’ report from Wagestream, which launched today.
The report, based on research with 4,000 UK and US workers (equally split between the countries), found declining mental health due to money worries is prevalent on both sides of the Atlantic.
In the UK, ‘money worries’ among employees have surged. Researchers recorded a 63 percent rise in financial anxiety from 2024 data. Nearly half (48 percent) of workers worry about money at least once a week and 14 percent worry about it every day.
In the US the situation is similar, with more than six in ten (62 percent) employees worrying about money at least once a week and 23 percent worrying about it daily.
Researchers found that “forward-thinking employers” are focusing on financial resilience and this is driving notable improvements in productivity, retention and engagement.
Almost half (48 percent) of UK employees said they would move organisations for tools that improve their short, medium and long-term financial health. The value of such tools is emphasised further as the report said that when offered them, 28 percent of UK employees would stay with their employer for longer. In the US, employees offered tools that support their financial wellbeing report feeling three times more motivated than without them.
With 62 percent of UK employees admitting that they are unaware of their main savings account interest rate, financial education and wellbeing tools could help improve engagement.
Interestingly, nearly half (46 percent) of UK employees believe their employer cares about their financial health, rating them more positively than banks (32 percent).
Researchers found that if an employer offered their workforce a better savings account than their bank, 34 percent UK employees believe they would be able to save.
More than a quarter (28 percent) of UK employees would stay with their employer longer if they had a workplace savings account, while 18 percent said they would work harder and 20 percent would focus more at work.
Prelini Udayan-Chiechi, chief marketing officer at Wagestream, said: “Our latest report shows that financial stress continues to dominate both UK and US employees, directly eroding productivity and engagement, but this is a challenge employers are perfectly placed to address. The message is clear: building financial resilience isn’t just the right thing to do, it’s a powerful metric for business performance, driving productivity, retention and above all, happier teams.
“When employees feel financially secure, they show up more focused, more motivated, and more committed. With the right data, insights and strategy, organisations can turn financial wellbeing into a game-changing advantage – crucial in today’s economic climate.”
