Research: Amid soaring financial stress, financial resilience is key to engagement & productivity

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. 

To see the full reports, visit:
For the UK
For the US