This guide provides a clear framework for measuring the key components of financial resilience. By tracking these metrics, you can ensure that your initiatives are genuinely effective and delivering a strong return on investment.

Why is measurement important?

Measuring financial resilience might seem like extra work, but it's crucial for several reasons:

Pinpoint problems: It helps businesses identify the specific financial challenges their employees are facing. Are they struggling with debt? Lacking a savings buffer? Or are they plagued by income volatility?  

Target support: Once you know the specific issues, you can provide targeted interventions that will have the biggest impact. No more generic, one-size-fits-all solutions that miss the mark.  

Prove the ROI: Measuring allows you to demonstrate the return on investment (ROI) of your financial wellbeing programmes. This is vital for securing continued investment and buy-in from senior management.  

Track progress: It enables you to monitor your progress over time and continuously refine your strategies for long-term success. What's working? What's not? Measurement provides the data to adapt and improve.  

The key components and how to measure them

1. Employees want it (and expect it!)

Let's face it, employees aren't shy about wanting financial support. A significant 46% of UK employees believe their employer and line manager care about their financial health. That's a higher trust rating than banks (32%) or even the government (20%). In today's world, where money worries are a constant hum, employees see their employers as a crucial source of support. Companies that step up win big in the talent attraction and retention stakes.  

2. Retention rockets vs. turnover tanks

Want to keep your star players? Prioritising financial resilience is non-negotiable. A whopping 28% of employees would stay longer with an employer offering workplace savings support. Think about the flip side: a staggering 48% would ditch their current employer for one with better financial support. With over 20% of employee turnover potentially linked to financial stress, investing in resilience is a serious money-saver.

3. Engagement & productivity through the roof

Financially secure employees are engaged employees. And engaged employees are productivity powerhouses. Organisations that invest in savings support see a jaw-dropping 43% increase in employee engagement and a 40% boost in productivity. That's not just a little bump; it's a seismic shift.

4. The Empathy Gap is real (and costly)

Here's a harsh truth: leaders often misinterpret the root causes of employee financial stress. There is what’s known as an ‘empathy gap.’ Too often, financial stress is written off as a lack of knowledge, solved by financial education, a decision made by high-income business leaders, with no true knowledge of their employees’ everyday lives. But the reality is more complex than a simple lack of understanding - low income, volatile hours, and limited access to fair financial products all play a huge role in creating financial instability. Failing to understand this disconnect leads to ineffective support and missed opportunities.

5. Action > Education

Employees generally know what healthy financial behaviours look like (save more, budget better, etc.). The problem? Barriers. Inaccessible tools, income limitations, and debt prevent them from taking action. Throwing more ‘education’ at the problem simply doesn't cut it. Practical tools and accessible solutions are the real unlock for happier and healthier teams.

6. Financial stress is a productivity killer

Money worries aren't just a personal issue; they bleed into the workplace. A significant 31% of employees say that financial stress negatively impacts their work performance. That's a huge chunk of your workforce operating below their potential. Reducing financial stress unlocks focus, creativity, and overall productivity.  

7. It's about more than just paychecks

Financial resilience isn't just about how much employees earn; it's about their overall financial health. It's about savings buffers, managing debt, income stability, and access to fair credit. Employers who take a holistic view and provide support across these areas build a truly resilient workforce.  

In 2025, financial resilience isn't a perk; it's a necessity. Companies that make it a core metric will be the ones that attract the best talent, drive peak performance, and build a sustainable future.

There has been growing recognition by many areas of society that changes need to be made and urgent support put in place to ensure workers are able to foster financial resilience against these pressures - and the leader of this charge has been employers themselves. 

The Employee Perspective: The Burden of Financial Stress

To understand the ugly truth of the impact of financial stress on employees - you only have to skim the surface of the data surrounding the subject:

Financial concerns are the top worry for employees (31%) in 2025 (up from 19% in 2024)

27% worry about money every single day

Savings are down (a third have £500 or less) and borrowing is up (over a fifth are borrowing more) 

This paints a stark picture of the financial vulnerability experienced by a significant portion of the UK workforce. In fact, 42% of employees report feeling overwhelmed by financial concerns, highlighting the sheer scale of the issue.

For many, saving seems like an unattainable goal, with 45% believing it's unrealistic to set aside any money this year. This environment of persistent financial strain creates a heavy burden for employees, impacting their daily lives and overall wellbeing.

The Employer Opportunity: A Strategic Imperative

Employers are the natural fit when it comes to leading the way on supporting the UK’s workers, they after all have the most important financial relationship with their employees - they are the ones who pay them. In fact, research from Censuswide found that 46% of UK employees believe that their employer cares about their financial health, compared with just 32% and 20% believing the same of banks and the government. 

This level of trust places employers in a unique position to make a real difference. Supporting employee financial resilience isn't just a socially responsible move; it's a strategic imperative that yields tangible business returns. Forward-thinking organisations are beginning to recognize that fostering financially resilient teams translates to a more engaged, productive, and loyal workforce.  

The Business Case: Tangible Returns on Investment

The data speaks for itself: investing in employee financial resilience drives positive business outcomes.

Retention - holding onto your MVPs: Offering workplace savings support can significantly boost employee retention. 28% of employees say they would stay longer with an employer who provides such support, and 18% report they would work harder. Conversely, the cost of losing valuable employees is high, with over 20% of employee turnover potentially linked to financial stress. Investing in resilience is a clear opportunity to reduce those costs.  

Engagement & Productivity - unlocking peak performance: When organisations prioritise their employees' financial wellbeing, they witness a significant uplift in engagement and productivity. Companies that invest in savings support see an average increase of 43% in employee engagement and a 40% rise in productivity. Employees who are empowered to build savings feel a greater sense of pride (33%) and report improved wellbeing. In fact, 25% state that doubling their savings feels better than going on holiday!  

Stress Reduction - clearing the mental fog: Financial stress is a productivity vampire, and has a direct impact on the workplace. 31% of employees report that money worries negatively affect their work performance. By providing tangible financial support, employers can reduce this stress and free up employees' mental bandwidth, allowing them to focus on their work.

Creating a Win-Win Scenario

Ultimately, fostering financial resilience creates a win-win scenario for both employees and employers. By taking a holistic approach and offering long-term solutions that address the fundamental "cost of life," not just the immediate "cost of living," companies can build a stronger, more stable workforce. This requires moving beyond generic, one-size-fits-all benefits and providing a comprehensive suite of support that empowers every employee to achieve genuine and lasting financial resilience. In today's world, where financial uncertainty is a constant presence, the employers that prioritise and invest in the financial wellbeing of their employees are the ones that will thrive.

The Scope of Financial Stress

In presenting the case for economic wellness, understanding the underlying issues becomes paramount. Nearly half (48%) of the UK populace is battling the persistent distraction of money worries at work, inevitably reducing overall productivity. In more tangible terms, this translates into a distressing £1.56bn annual expenditure for UK businesses.

The retail workforce, with its diverse financial needs, is hit particularly hard. Hourly wages that fluctuate monthly make consistent saving a challenge. When unforeseen events strike, over 50% of households struggle to cover unexpected bills of £300+. This persistent stress not only takes a toll on workers' productivity but also their wellbeing and operational effectiveness.

The Price of Inaction

The cost of ignoring financial stress extends beyond individual struggles. Data reveals that financial strain leads to 20% decreased focus and productivity among workers. Additionally, the retail sector is particularly vulnerable to the crippling effect of presenteeism and absenteeism, a costly £1.56bn per year. This strain fragments the rich social fabric that underpins operational efficiency within retail workplaces.

Shaping the Future of Retail

Retailers can future-proof their businesses with proactive financial wellbeing initiatives designed to meet the diverse needs of their workforce. Here's how:

Promoting Transparency: Clear and consistent communication around pay information can alleviate the strain of unpredictability and empower employees to plan their finances effectively.

Savings Incentives: Encouraging regular savings through nudging techniques can build a buffer against unexpected expenses and reduce financial stress.

Flexible Pay Cycles: Moving away from locked pay cycles can give employees better control over their finances.

Personalised Support: Offering personalised financial support and coaching rather than generic financial education can drive long-lasting behavioural change.

By embedding such fundamentals of financial stability into organisational culture, retailers can foster a more engaged, resilient and financially secure workforce. As we accelerate towards Retail 2025, it is clear that financial wellbeing will be a key determinant of success in this dynamic industry.

The retail sector is unique, with certain features such as shift-based work creating a challenge for hourly workers when budgeting. Their financial stress is only aggravated by fluctuating earnings and irregular pay cycles.

So, how can we enhance financial wellbeing in retail? Here's a roadmap:

Transparent Information: Clearly communicate employees' earnings to them. You can usually find this as part of your wider financial benefits offering/toolkit.

Savings Nudges: Encourage your workforce to save regularly as part of their financial planning.

Unlock Pay Cycles: Allow employees to access their earned pay at any time, providing them with financial flexibility.

Personalised Support: This, including financial coaching and peer-to-peer accountability, is more potent than generic financial education programs. Remember, the diverse needs of retail employees at different life stages must be addressed.

Strong interpersonal relationships are the backbone of the retail sector. Financial stress can pose a threat to these relationships, critically influencing operational efficiency and customer satisfaction.

Incorporating financial wellbeing into broader wellbeing strategies is a realistic way for retailers to support their employees. Collaboration with organisations like Wagestream and the Retail Trust provides valuable resources and expertise in bolstering financial health.

Retailers, by concentrating on behavioural change, transparency, savings tools, and personalised support, can empower employees to build financial resilience. The end result? Enhanced overall productivity, and loyal, engaged teams.