Susan works full time and budgets carefully. Still, she’s in her overdraft every month. Unexpected bills mean borrowing from family or relying on credit cards. She’s not alone. Nearly a quarter of UK employees worry about money daily. And 60% are struggling to keep up with bills.
Money stress doesn’t stay at home. It follows people to work. It hurts focus, health and confidence. This leads to lower productivity, more sick days and poor mental health.
Fair pay isn’t enough anymore. Employees need help building resilience and confidence around money. It’s critical that employers support the financial wellbeing of their employees.
Employers can do this by offering:
- Payroll savings to help employees set money aside before it hits their bank account
- Easy-to-understand pension plans that give staff control over their future
- Debt support, including signposting to trusted resources, and financial education
Financial wellbeing at work improves mental health, boosts morale and shows that the business genuinely values its people.
The importance of building a savings culture for financial health and wellbeing
Savings are the foundation of employee financial wellbeing. Despite this, approximately 30% of people in the UK have no savings at all. This leaves many people just one bill away from crisis.
Without a safety net, stress rises. This affects focus, confidence and decision-making. It leads to more sick days and lower engagement. The cost to UK employers is estimated at £2.5 billion a year.
Regular saving helps employees feel more in control. It builds resilience and eases anxiety. Even small amounts saved monthly can make a big difference.
Emergency funds are vital. They help employees cope with the unexpected. Short-term savings goals - like Christmas or car repairs - keep motivation high.
A savings culture shows that the business cares about long-term wellbeing, not just short-term output. It builds trust and a stronger team.
Book a demo to see how PayCaptain makes saving simple for your team
Payroll saving: a simple way to boost employee financial wellbeing
Payroll savings help employees build good habits. With PayCaptain, savings can be sent straight from payroll into a savings account. It’s automatic and removes the temptation to spend.
PayCaptain offers several ways to support this:
- Payroll savings: Employees choose how much to save and it’s sent directly from their pay
- SmartPay: PayCaptain ‘nudges’ employees to save based on their monthly pay and spending
- Savings pots: Employees can name and manage savings pots - like ‘emergency fund’ or ‘holiday’ -and move money in or out as needed
These tools reduce stress and build a stronger sense of security. It’s one of the easiest ways to improve financial wellbeing at work.
How to support employee budgeting and saving in the workplace
Many employees don’t know how to budget. Helping them learn can make a big difference.
Employers can improve financial wellbeing at work by offering simple budgeting workshops or webinars. Topics like spending, goal setting and managing surprise costs can be covered. These sessions can run during lunch breaks or on wellbeing days.
The PayCaptain mobile payroll app includes budgeting and savings tools. Combining these tools with budgeting and money management education builds confidence. Budgeting support helps staff feel in control.
Some businesses also offer a savings match - where the employer adds a bonus to each savings deposit. This shows real commitment and boosts engagement.
How to support workplace pension planning for employee financial wellbeing
Workplace pensions were introduced in the UK to help people save for retirement. Before this, many employees had no pension at all, leaving them financially vulnerable later in life.
The most significant change came with automatic enrolment, which began in 2012. The government brought in new rules requiring employers to provide a workplace pension scheme and contribute to it. Employees are enrolled by default but can choose to opt out.
The aim was to tackle the growing pension gap and reduce reliance on the state pension. With people living longer, the government wanted to ensure more workers had private savings to support them in later life.
Today, automatic enrolment is standard for most workers aged 22 or over who earn more than £10,000 a year. Employees who earn over £6,240 can be enrolled on request but it doesn’t happen automatically. Both employers and employees contribute, helping to build a more secure financial future.
Pensions are a big part of long-term wellbeing. They help employees plan for a secure future and reduce stress about retirement. But many still don’t understand how they work - or how much they’ll need. This lack of knowledge leads to inaction and uncertainty.
Employers can help by making pension info clear and easy to access.
By law, employers must:
- Enrol eligible employees into a workplace pension
- Make minimum contributions
- Offer opt-out options
But it pays to go beyond the basics. Employers can help their people to:
- Understand their pension
- Use tools to check if they’re on track
- Access help increasing contributions or merging pots
Planning for the future gives peace of mind today. A strong pension offer shows commitment to employees’ long-term wellbeing.
Discover how PayCaptain helps build a healthier, more financially confident workforce
How pension education helps employees plan for retirement with confidence
Pension education helps staff make better choices. Many put off planning for retirement because they don’t understand their options.
To improve employee financial wellbeing, employers should start by explaining the basics:
- Defined contribution: Based on what’s paid in and how investments perform
- Defined benefit: Based on salary and time worked
- State pension: Based on National Insurance contributions
Small contributions made early into a company pension plan can grow significantly. Helping staff understand this can lead to action.
Employers can also run regular pension info sessions with expert advisers. Topics to be covered should include:
- How much is needed in retirement
- What current contributions will provide
- How to boost savings
- What to do with old pensions
Sessions can be in person, online or via video. They should be made easy and free from jargon. Pension knowledge builds confidence and control.
Understanding pension contributions and their impact on financial wellbeing in the workplace
All UK employers must contribute to a company pension plan. The minimum pension contribution for a workplace pension is:
- 3% from the employer
- 5% from the employee
That totals 8% of qualifying pay. Some employers contribute more. This boosts employee retention and shows the employers commitment to employee financial wellbeing.
Employers should be clear about:
- How much is contributed
- How pensions grow
- How to increase savings
One useful option is salary sacrifice. This allows employees to exchange part of their salary for pension contributions. This is a contribution from gross pay, before tax and National Insurance. It means:
- The employee’s take-home pay drops by less
- The full amount goes into their pension
- Employers save on National Insurance
It’s a win for both parties.
Why personalised financial advice improves financial wellbeing at work
Everyone’s financial situation is different. Personalised advice helps employees make the right decisions. But money decisions can be overwhelming. Financial advisers help staff make informed, personal choices.
Encourage regular pension reviews. Life changes - like pay rises, family growth or new goals - may mean old pension plans no longer fit.
PayCaptain’s pensions dashboard helps. It shows:
- Total contributions
- Pension provider(s)
- How much is saved
- Progress towards an employee’s retirement goals
This visibility makes planning easier and more effective.
Start building a workplace where payroll supports long-term financial wellbeing
Financial wellbeing support isn’t one-size-fits-all. For purpose-driven businesses, it’s also about aligning benefits with values. That’s where B Corps are leading the way. They're doing this by embedding financial wellbeing into their core business practices. They prioritise fair pay, inclusive benefits and long-term financial security as part of their commitment to people and purpose.
How B Corporation employee benefits support financial wellbeing in the workplace
B Corporation status shows a business puts people first. It reflects values like fairness, transparency and long-term thinking.
One key area of the B Corp assessment is the impact on Workers. This impact area covers pay, job security, development and financial wellbeing.
Supporting financial wellbeing helps employees feel valued and secure.
B Corps can offer:
- Payroll savings
- Pension support
- Access to financial advice
- Smart tools like PayCaptain’s payroll app and pension dashboard
Being a B Corporation isn’t about ticking a box. Focus on employee financial wellbeing reduces stress. It also leads to better health, stronger engagement and higher productivity.
Values-led benefits show that purpose and action align. And that wellbeing matters.
Offer financial wellbeing benefits like ethical pensions to align with employee values
Employees want their money to reflect their values. Ethical pensions are a way to offer that.
Also known as green pensions or sustainable pensions, they’re funds that avoid investing in portfolios like fossil fuels, guns or tobacco. They may support green energy or back companies with strong ethics.
Employers should let employees:
- See where their money is invested
- Choose sustainable options
- Understand the impact their pension makes
It shows the business is committed to responsible finance, not just profit. It’s a meaningful way to support long-term change.
How fair pay and transparent benefits improve employee financial wellbeing
Trust comes from transparency. Employees should understand how pay and benefits are set. Clear communication avoids confusion and shows fairness.
Fair pay means:
- Paying a living wage
- Reviewing pay structures
- Tackling pay gaps – whether they be gender pay gaps or ethnicity pay gaps
Everyone should have equal access to financial support, no matter their role or income. That includes savings, pension advice, debt support and budgeting tools. Fairness builds loyalty, supports mental health and creates a stronger culture.
Offer employer-led financial wellbeing initiatives to benefit the wider community
Financial wellbeing goes beyond the workplace. A supportive employer can help strengthen communities too.
Businesses can partner with local financial literacy charities. They offer workshops, resources and support. Sponsoring events or sharing expertise expands impact. Some businesses invite these charities to speak to staff, offering support and doing good locally.
Financial support also has a ripple effect. When employees feel confident, they pass knowledge on to family and friends.
B Corps can align benefits with community goals to create a more financially secure society.
Provide ongoing support for employees to benefit mental health and financial wellbeing
Financial wellbeing benefits that help employees manage money and reduce stress
Financial support works best when it’s built into payroll software. PayCaptain makes that possible with smart, practical tools.
Each feature helps in a real way:
- Salary advances and emergency cash payments
Lets employees access earnings early, which helps them avoid using expensive credit facilities and short term loans - Flexible payments
Quick reimbursement of out-of-pocket expenses to keep employees’ cash flow stable - Savings through payroll
Employees can send part of their pay into savings accounts or allocate them to savings pots automatically - Pension dashboard
Shows pension progress clearly to encourage future planning - Payroll app
Gives easy access to pay, savings and pensions information in easy to understand format - Plain Numbers payslips
Simplifies payslips - ideal for those new to work or with limited literacy - Debt support
PayCaptain signposts to trusted advice like MoneyHelper for those struggling with debt
These tools help employees manage now, plan ahead and feel more secure.
Find out how PayCaptain’s payroll tools can reduce stress and improve retention
Open communication about money improves financial wellbeing at work
Talking about money often still feels taboo. But open conversations lead to better support. Employers should encourage feedback and open conversations about money. They can ask what’s working, what’s missing and what employees need more of. To do this, employers can use surveys, focus groups or regular check-ins.
When staff feel heard, trust grows. And when they talk early, support can come sooner, before issues escalate. Open communication leads to better policies, stronger benefits and a more supportive culture.
Review financial wellbeing support for employees regularly
Needs change. What works today may not work in six months. To keep up to date with changing needs, employers should regularly review the support they offer:
- Check financial wellbeing support employee usage data
- Gather feedback
- Stay aware of external changes like inflation or pension reforms
Regular reviews help improve benefits and keep them relevant. They also show that the business is paying attention and genuinely cares about financial wellbeing and mental health.
Final thoughts from PayCaptain
Financial wellbeing at work matters. It’s key to a fair, healthy and productive workplace.
When businesses invest in it, everyone benefits. Employees feel more confident and less stressed. Employers see higher engagement and retention. Absences decrease and employee mental health improves.
At PayCaptain, we believe payroll should do more than process pay. It should help people save, plan and grow. From payroll savings to pension dashboards, our tools support everyday wellbeing.
Employers should listen to what employees need, make improvements as needs change and make financial wellbeing part of everyday working life.
Talk to PayCaptain about how payroll can support employee financial wellbeing
