Employee financial wellbeing: a practical guide for UK employers

Financial wellbeing is one of the most cost-effective investments an employer can make in its people, and the evidence for its impact is becoming increasingly difficult to ignore.

In February 2025, the Chartered Institute of Personnel and Development (CIPD) surveyed around 5,000 UK employees for its Good Work Index. 31% said money worries had hurt their performance at work. That rose to 37% among people earning under £40,000, but it was still 22% for those earning over £60,000.

So this isn't just a lower-pay issue. It shows up across every pay band.

When people feel financially secure, they tend to be more focused, more engaged and more likely to stay. When they don't, it shows up as distraction, sick days, lower productivity and staff leaving, often without anyone realising money was the cause.

This guide covers what financial wellbeing is, why it matters, how to find out what your team needs, what works in practice, and how to measure the results.

What Is Employee Financial Wellbeing?

Employee financial wellbeing is how secure and in control your people feel about their money, now and in the future. It covers day-to-day budgeting, managing debt, building savings and planning for retirement.

It isn't simply about salary. Two people on the same pay can feel very differently about their finances, depending on their debts, their savings and how confident they are making money decisions.

Why Employee Financial Wellbeing Matters

One of the clearest signs is financial resilience. The same CIPD survey found 30% of UK employees would struggle to cover an unexpected £300 bill, rising to 52% of those earning under £20,000. Having no buffer creates stress even before anything goes wrong.

Financial stress rarely stays at home, either. 19% of employees told the CIPD they lose sleep over money, 15% have stress-related health problems, and 13% say money worries make it hard to concentrate or make decisions at work. For employers, that tends to mean more absence, people at work but not at their best, and a higher risk of burnout and staff turnover.

There is a recruitment angle too. Earlier CIPD research found 59% of employees think it's important their employer supports their financial wellbeing, rising to 65% when they are choosing a future employer. Support with money is fast becoming something people expect, not a perk.

Start by Finding Out What Your Team Actually Needs

Before you put anything in place, find out where your people really are. Guesses about what staff need are often wrong, and a programme built on guesses tends to get low take-up.

An anonymous survey is usually the best starting point. It's worth asking about confidence with day-to-day money, debt, savings and emergency funds, understanding of the workplace pension, and how prepared people feel for retirement. That gives you hard numbers as well as the bigger themes.

Confidential one-to-one conversations or small focus groups can then add depth. People are often far more open about debt or worries about the future when they are talking privately to someone outside the business.

What Actually Works: Key Financial Wellbeing Initiatives

Financial Education

Education is the foundation of most good programmes. Popular topics include budgeting, saving and emergency funds, managing debt, mortgages, workplace pensions and planning for retirement.

The sessions that land best are practical, free of jargon and interactive. People should leave knowing one or two things they can do that week, not just the theory.

One-To-One Financial Guidance Sessions

In my experience, one-to-ones are the part of a programme employees value most. They give people a private space to talk through their pension contributions, retirement plans, debts or savings goals.

These sessions are education and guidance. They help people understand their options and next steps, but they don't include regulated financial advice, which means a personal recommendation and can only be given by an authorised financial adviser. Being clear about that from the start builds trust, and means employees can ask anything without feeling they are being sold to.

Fair Pay And Meaningful Benefits

Financial wellbeing starts with fair pay, but benefits play a big part too, from employer pension contributions and pension matching to income protection, life cover and private medical insurance.

The catch is that benefits only help if people understand them. I regularly meet employees who don't know what their employer pays into their pension, or that they have life cover at all. Explaining the benefits you already offer is often the quickest win available.

How To Build And Run A Financial Wellbeing Programme

1. Set Clear Goals

Decide what you want to achieve before you start. Common goals are reducing financial stress, getting more people using their benefits, increasing pension contributions and supporting retention. Clear goals keep the programme focused and make it easier to show it has worked.

2. Involve Employees From The Start

The best programmes are shaped by employees rather than handed to them. Surveys, focus groups and a couple of employee champions help make sure the programme reflects what people actually need. Every workforce is different, and relevance is what drives take-up.

3. Measure And Refine

A financial wellbeing programme should evolve over time.

Useful measures include:

• Attendance at sessions

• Engagement with tools and resources

• Changes in financial confidence (survey-based)

• Pension participation and contribution rates

• Employee feedback and satisfaction

  
  

Repeating a survey after 6-12 months provides a clear view of impact and helps refine future activity.

What This Looks Like In Practice

I recently worked with Chip on a financial wellbeing programme built around one-to-one coaching sessions, workshops and practical money tools. The topics came straight from employee feedback, covering pensions, investing, budgeting and making the most of workplace benefits.

The most significant outcome was not just improved financial knowledge, but stronger engagement with existing employee benefits and greater confidence in financial decision-making.

I also worked with Work.Life on a "Money Month", four focused sessions run because employees asked for them. Packing the sessions into one month built real momentum across the business.

Both programmes show there’s no single template. The ones that work are built around what employees actually want.

What Does a Financial Wellbeing Programme Cost?

Costs depend on the size of your team and what you include, but they are often lower than employers expect. As a guide, Kyte Financial Planning's programmes cost:

• £875 for a single presentation or workshop, or £1,399 for two

• £3,475 for a full day of one-to-one sessions, up to 20 people

• £4,975 for two days in your office, combining workshops and up to 40 one-to-ones

All prices include VAT. Every programme starts with a short survey of your team, so the sessions cover the topics that matter most to them. You can see the details on our workplace financial wellbeing page.

Many of the most effective steps cost very little. Explaining your existing benefits clearly, for example, can make more difference than adding new ones.

Frequently Asked Questions

Do financial wellbeing programmes replace pay rises?

No. Financial wellbeing programmes are not a substitute for fair pay. However, they complement remuneration by helping employees manage their money more effectively and make better use of the benefits they already receive.

How do you measure employee financial wellbeing?

The most reliable way is an anonymous survey before and after the programme, measuring financial confidence, stress and understanding of benefits. Attendance and pension take-up add useful extra evidence.

What is the difference between financial guidance and financial advice?

Guidance helps people understand their options and how things work. Regulated financial advice is a personal recommendation based on someone's circumstances, and only an authorised financial adviser can give it. Workplace programmes focus on education and guidance, and point people towards regulated advice where it would help.

What are financial wellbeing activities?

Workshops, one-to-one guidance sessions, pension awareness sessions, budgeting challenges and access to money tools and resources.

Where should employers start?

With an anonymous employee survey. It shows you the biggest money pressures in your team, so whatever you put in place is relevant and gets used.

Can financial wellbeing improve employee retention?

It can. Employees who feel supported with their money tend to be more engaged, and 65% say financial wellbeing support matters when choosing an employer.

Is it worth it for a small business?

Yes. A financial wellbeing programme can be scaled to any size. Even a single workshop on pensions and benefits can make a real difference to a small team.

Can Kyte Financial Planning run financial wellbeing sessions for our organisation?

Yes. Kyte Financial Planning delivers tailored workplace financial wellbeing programmes including workshops, presentations, pension education and one-to-one guidance sessions designed around employee needs.

To discuss this further, email hello@kytefp.co.uk.

Final Thoughts

You don't need a big budget to make a difference. In my experience, the programmes that work best aren't the most expensive ones. They are the ones built around what your people actually need, explained clearly and followed up.

If you're not sure where to begin, start with a short anonymous survey. It costs almost nothing and tells you exactly where to focus.

About The Author

Jamie Kyte is a Chartered Financial Planner and founder of Kyte Financial Planning. He holds the Chartered Insurance Institute Level 6 Advanced Diploma in Financial Planning and has over a decade of experience advising on pensions, investments, retirement planning and inheritance tax. He is also a top rated London financial adviser.

Jamie specialises in workplace financial wellbeing programmes, helping employers improve employee financial confidence through structured workshops, presentations and one-to-one guidance.

To discuss workplace financial wellbeing support, email hello@kytefp.co.uk.

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Whilst Kyte Financial Planning is regulated by the FCA, advice will never be given as part of any Financial Wellbeing & Education Programme offered to a company. In some circumstances, where an individual requires specific advice, they may go through the Kyte Financial Planning Journey and become a client of Kyte Financial Planning.

Kyte Financial Planning Limited (the "Firm") is an Appointed Representative of ValidPath Limited, which is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 197107.

The information in this article is for general guidance and does not constitute personal financial advice.