New report from Wagestream urges employers to take action and build on employee financial resilience

Amid critical levels of financial stress in the UK and US, new research has identified financial resilience as a crucial lever for bolstering employee engagement and productivity. With money worries dominating, the report reveals that forward-thinking employers are focusing on financial resilience and driving notable improvements in productivity, retention and engagement as a result. 48% of UK employees would move employers for tools that improve their short, medium and long-term financial health. When offered these, 28% of UK employees would stay with their employer for longer, and US employees feel three times more motivated.

The market research by financial wellbeing leader Wagestream surveyed 4,000 employees, equally split between the UK and US. 

Key insights include: 

Financial stress dominates: Money worries have surged ahead as the top concern for employees, within the UK, there was a 63% rise from 2024 data. This financial anxiety is widespread, with 48% worrying about money at least once a week and 14% worrying about money every single day. The situation in the US is similar, with 62% of employees worrying about money at least once a week and nearly a quarter (23%) worrying about money daily.  

Volatile pay creates poor financial footings: The rise of unpredictable income is further eroding financial resilience. Over a third (36%) of employees in both markets have variable income month to month. In the US, 15% of employees see a fluctuation of 10% or more each month and 40% hold ‘Fair’ or ‘Poor’ credit scores, which can further financial exclusion. Alarmingly, a significant portion in both the US (19%) and UK (15%) lack a financial support network, compounding their vulnerability when faced with financial hardship.

Savings compounds financial pressures: Concerningly, 45% of UK adults believe that setting savings aside is unrealistic this year, with a significant one in six having no savings, and a third having £500 or less. The US mirrors this fragility, with over a third (34%) having $300 or less in savings and 45% have $500 or under.

A disconnect remains: While employees increasingly look to employers for support (46% in the UK believe their employer cares about their financial health), ranking them higher than banks (32%) or the government (20%), a disconnect remains. Despite 93% of UK employers having financial wellbeing support in place, only one in five employees believe this meets their needs. In the US, 76% of employers think they provide a supportive environment, but only 39% of employees agree. This gap presents a clear opportunity for employers to implement more effective and practical solutions that build genuine financial resilience.

Resilience drives business outcomes: The data is clear: financial resilience is a strategic imperative for key business metrics. Findings indicate that 28% of UK employees would be more likely to stay with an employer offering better financial support, 18% report they would work harder, and 20% would focus more at work. Conversely, 48% would move to another employer for better financial benefits. In the US, employees who feel valued at work are three times as likely to be motivated.

The report recommends a holistic approach with solutions that improve the full financial life of employees:

Implement practical toolkits: Move beyond generic education to practical tools addressing short, medium, and long-term needs - including budgeting support, savings schemes, flexible ways to get paid and money coaching.

Prioritise financial inclusion: Recognise that traditional financial products exclude those with low and/or volatile income. Offer inclusive alternatives like access to flexible pay and fair, affordable workplace loans to offer lifelines and potentially help build positive credit history. 

Foster savings habits: Offering workplace savings based on an opt-out rather than an opt-in basis is a powerful way to increase savings participation. 66% of employees want saving to be automatic and effortless as pensions.

Address income volatility: Adopt standards like the Living Wage Foundation's 'Living Hours' to provide predictable hours and pay, mitigating a key driver of financial instability for employees in low-paid and/or variable work.

Prelini Udayan-Chiechi, Chief Marketing Officer at Wagestream, comments: “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.” 

With over 10 million monthly transactions and $3 million+ in payments processed a month through Wagestream, this highlights the massive volume of employee financial activity now flowing outside conventional banking channels, part of the new employee, employer dynamic with financial wellbeing at the heart. 

It's easy to assume you're doing enough, but there's often a disconnect between what employers think they're offering and what employees actually want and need. So, how do you know if your business is genuinely building financial resilience, or simply ticking the box?

This is why we’ve built the financial resilience calculator, where you can see how your benefits measure up for your workforce.

Beyond the Basics

Many companies are making an effort, with 93% having some form of financial wellbeing support in place. Great news. However, a big challenge remains: employees often don't find this support effective. Too often, it's inconsistent, relies too heavily on financial education (which, on its own, isn't enough), and fails to provide the practical tools employees need.  

To truly move the needle, businesses need to implement comprehensive financial wellbeing toolkits that address the diverse needs of their workforce. This means going beyond generic advice and offering tangible support for short, medium, and long-term financial goals.  

Key areas to focus on:

Financial inclusion: Traditional financial products often exclude a large portion of the workforce. Only 4% of employees have credit scores that qualify them for traditional lending. This pushes people towards high-cost debt and further financial exclusion. Businesses need to offer inclusive solutions like fair, affordable credit and tools that help employees build their credit profiles.  

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.

Wagestream secures £300M debt financing facility to increase facilitation of fair financial services for employees.

Wagestream, the market-defining leader for financial wellbeing solutions, announced a £300 million debt financing facility provided by Citi.

Launched in late 2024 through an early access program, Wagestream’s Workplace Loans has already helped the lives of thousands of borrowers. With this facility now in place, Wagestream has the ability to expand the Workplace Loans product offering to its UK member base and continue investing in the product.

The loans are tailored to individual needs, circumstances and repaid through payroll deductions. They are designed with the reality of varied income frequencies, rather than a single, monthly payday. There are no fees, clear terms, helping employees make informed decisions to build their financial resilience. Rates start as low as 5.9% APR with an expected average representative APR of 13.9%-16.9% across the portfolio.

Portman Wills, Wagestream co-founder comments:

“In just a short period, we’ve seen significant uptake and positive feedback from our members benefiting from fair, accessible credit. This credit facility will allow us to scale our offering dramatically, reaching more employees, with an alternative to the high interest loans offered by traditional financial institutions”.

Wagestream’s solutions are offered to over three million people through 2,000+ brands, helping employees make better financial wellbeing decisions, from how and when they get paid, to live tracking, budgeting and coaching services, to enabling better savings habits. The company processes more than 10 million monthly transactions and more than £2.5 billion in monthly payments on its platform.

World-leading impact investors, Better Society Capital, Social Tech Trust and Fair By Design, along with renowned venture investors, including Balderton Capital, Northzone, QED, Smash Capital, BlackRock and British Business Bank, have all invested in Wagestream.

Financial wellbeing provider Wagestream has announced the appointment of Prelini Udayan-Chiechi as Chief Marketing Officer (CMO), reporting to CEO and Co-Founder, Peter Briffett. 

Udayan-Chiechi brings a wealth of experience to Wagestream, with over two decades of marketing leadership across the technology and high-growth sectors. She comes with a track record of driving growth at some of the world’s leading technology companies, including Zendesk, Bazaarvoice, Lithium Technologies, Adobe, and IBM. She has also served as a Strategic Advisor to Northzone - one of Europe’s leading venture funds, and an investor in Wagestream.

The appointment comes as Wagestream continues to expand its US presence: already headquartered in Washington, D.C., the company will continue to expand its New York City presence, with a new Soho office and greater investment in its go-to-market teams. 

Wagestream experienced 250%+ growth last year in the U.S. with surging demand for its market-leading financial wellbeing platform, among employers. It expects to support more than one million members in the U.S. by the end of 2025, with companies like Crate & Barrel, Floor & Decor, New Balance and Burger King now offering financial benefits through Wagestream’s platform.

“Prelini has a proven track record of growth and impact at leading high tech organisations. We are on a journey of bringing fair financial services to all employees, and with Prelini’s experience, coupled with her dynamism, personality and strong leadership, we have no doubt of the value we will continue to drive for our clients and members” said Peter Briffett, CEO and Co-Founder of Wagestream.

Commenting on her appointment, Udayan-Chiechi said: “Wagestream’s mission is to deliver better financial wellbeing to the employees who are often underserved by traditional finance. With an unparalleled suite of products, ranging from flexible pay and savings to loans and pensions, Wagestream can effectively deliver on its mission and social charter, of bringing financial security and stability to the lives of billions of people around the world. 

I couldn’t be more excited to be joining, and leading the team at this pivotal phase of its journey”.

This announcement comes amid continued growth and momentum for Wagestream. The company processes more than 10 million monthly transactions and $3 billion+ in monthly payments on its platform. It was also recently recognised in The Times Tech100 for 2025.

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.