The impact of stress on our friends, families and colleagues is often obvious; raised voices, emotional reactions and reduced levels of patience. We’ve all been there, at work and at home.
But do we really understand the broader implications of stress, particularly financial stress, on our employees, our colleagues and our organisations?
Over the last decade, employee health has become a key focus for businesses, with initiatives like healthcare plans, gym memberships, and cycle-to-work schemes now commonplace. But health goes beyond the physical—true productivity is about more than just being present at work.
According to 2023 ONS data, 36% of working-age people have a long-term health condition, with over 2.5 million economically inactive (not working, studying or training). Over half cite mental health issues like depression or anxiety as the cause.
Supporting employee mental health isn’t optional—it’s essential. A healthy mind drives engagement, productivity, and success.
The physical impact of financial stress
It’s no surprise that financial stress can take a toll on employee health, leading to:
- Anxiety and depression
- Insomnia and fatigue
- Higher blood pressure
- Increased risk of heart disease.
Research backs this up. A South African study found that people under high financial stress are 13 times more likely to have a heart attack. Another study by UCL showed that financial strain increased the likelihood of poor biological health by 59%—effects that can last for years.
Money worries create a cycle of stress and poor health, which can lead to higher absenteeism and long-term health issues. Supporting employees’ financial wellbeing isn’t just good for them—it’s essential for a healthy, productive workplace.
For more information check out our blog on Absenteeism here: https://wellfi.co.uk/employee-financial-stress-absenteeism/
The Mental health impact of financial stress
Financial anxiety doesn’t just affect the body – it’s a major driver of mental health issues in the UK.
Research by the Mental Health Foundation shows that money worries are the leading cause of anxiety among UK adults. In fact, nearly 75% of people report feeling anxious regularly, and a third worry about paying bills.
This stress often leads to poor decision making, such as skipping medical care or turning to poor lifestyle habits like unhealthy food options or coping mechanisms like smoking or drinking, which harm both mental and physical health.
It doesn’t just pull employees away from work—it affects them while they’re at work, reducing focus, productivity and morale. For more on this, read our blog on Productivity. https://wellfi.co.uk/secret-to-supercharging-productivity/
what can you do to support employees’ mental health and financial wellbeing?
To help break the cycle of Financial Stress and poor Employee Health, consider implementing these steps:
- Offer Financial Education to employees: Supporting employees to manage their money better reduces employee stress and increases trust
- Give access to Financial resources: Share budgeting tools that allow employees to make meaningful improvements to their financial planning
- Offer comprehensive Health Plans: Support physical health
- Survey Employees: Check which current benefits support employee needs and divert funding from those which are unwanted
For more information on how to help employees, check out our Guide to Building A Successful Financial Wellbeing Program here: https://wellfi.co.uk/guide-to-building-a-successful-financial-wellbeing-program/
Financial Wellbeing is about building stability, reducing stress, and equipping employees with the tools and knowledge to confidently manage their money. By prioritising your employees’ Financial Wellness, you create a healthier, more engaged workforce—benefiting both your people and your organisation.