Money worries: The hidden productivity killer at work

A study by WEALTH at work exposes the significant toll that money worries are taking on employees in the UK. The research, which surveyed over 2,000 employees, paints a stark picture of financial fragility, with 23% having borrowed money from family and friends in the past year. In addition,18% have taken on even more debt, 28% have worked extra overtime and 13% have taken on a second job.

The financial stress is not just a personal issue—it’s directly impacting workplace productivity. Employees report that money worries are causing increased stress levels (40%), mental exhaustion (35%), decreased motivation (26%) and physical exhaustion (25%). They also complain of reduced focus and concentration (22%), all of which leads to increased sick days (10%)

Perhaps the most revealing finding is the disconnect between support and action. While 61% of workers feel supported by their employer and 40% are comfortable discussing financial issues, only 13% would actually seek help. The reluctance is particularly pronounced among older workers, with just 5% of those aged 55+ willing to approach their employer about financial concerns.

Despite these challenges, the research uncovers some positive trends in spending and investment habits. 43% of workers believe their financial situation will improve, and, when given spare cash, they prioritise saving in an ISA (42%), paying off debt (35%), covering essential bills (34%) and saving for retirement (26%).

Jonathan Watts-Lay from WEALTH at work emphasises the critical role employers can play to mitigate financial concerns: “It seems financial worries have become the new normal. With almost 14.6 million UK adults not coping financially or finding it difficult to cope, many are looking for ways to help ease the strain on their finances.”

He explains; “Whilst being employed has traditionally been associated with financial stability, research from StepChange showed that 44% of those seeking debt advice were full-time employed, cementing that money worries are firmly also a workplace problem."

Watts-Lay recommends strategies like providing comprehensive financial education alongside workplace savings schemes. It is also important to create an open, supportive environment to destigmatise money conversations as well as financial coaching. Watts-Lay notes: "Through financial coaching, employees can discover crucial financial lessons that not only improve their personal finances but also contribute to increased workplace productivity and reduced absenteeism."

Financial stress doesn’t just impact individual employees—it directly affects organisational productivity, engagement, and retention. From a Reward perspective, financial wellbeing is no longer a peripheral issue—it’s central to employee performance, and one-size-fits-all approaches won’t work; tailored, accessible support is crucial to build financial resilience. Organisations prioritising financial health and wellbeing will be the best placed to attract, support and retain their talent.