Building resilience against life shocks through workplace financial wellbeing

Life shocks such as illness, bereavement, redundancy or sudden caring responsibilities can destabilise employees’ finances almost overnight. 

These events affect not just personal wellbeing, but also concentration, engagement and productivity at work. 

Research from the Money and Mental Health Policy Institute shows that one in five adults in the UK experience mental health problems linked to financial difficulty. 

This demonstrates that financial stress is not just a private issue. 

It is also a workforce issue, and one that has real implications for organisational performance.

Employees who feel financially secure are around 50% more likely to remain engaged during periods of personal stress. 

Supporting staff in these situations is not an optional perk. 

It is a strategic decision that directly impacts retention, productivity and workforce resilience. 
When employees feel supported, organisations benefit from lower absenteeism, stronger morale and more consistent performance.

Too many financial wellbeing programmes are reactive. 

One-off workshops or generic online resources may provide guidance, but they rarely equip employees with the skills and confidence to manage finances proactively. 

A survey by the Money Advice Service found that around 30% of adults have had to rely on credit to cover unexpected expenses, illustrating how quickly small financial shocks can escalate. 

Reactive approaches leave employees vulnerable and limit the organisation’s ability to maintain a stable, engaged workforce.

The most effective financial wellbeing programmes focus on capability building. 

Encouraging employees to build emergency savings, understand benefits and income protection options, and prepare for potential income disruptions equips them to handle challenges before they become crises. 

Digital platforms are particularly effective, providing personalised guidance, scenario planning and real-time insights. 

When employees feel in control of their finances, stress diminishes and engagement increases. 

The Mental Health Foundation reports that financial anxiety contributes to poor sleep, heightened stress and lower productivity, demonstrating the tangible impact that proactive interventions can have on both employees and business outcomes.

Financial wellbeing is no longer an optional extra. 

The government’s Financial Inclusion Strategy, published in November 2025, highlights the growing expectation that employers will play an active role in supporting staff financial health. 

HR leaders who embed financial capability throughout the employee lifecycle, from onboarding to ongoing development, build resilience, reduce workforce vulnerability and prepare employees for life’s uncertainties. 

Evidence from the Employee Benefits Research Board shows that organisations with comprehensive wellbeing programmes report up to 31% higher retention and stronger employee satisfaction scores, underscoring the strategic benefit of investing in financial wellbeing.

Supporting employees through financial challenges equips them with skills, confidence and resilience that benefit both their personal and professional lives. 

It strengthens trust, enhances loyalty and ensures the organisation is future-ready. 

Organisations that treat financial wellbeing as a core responsibility create an environment where staff can thrive even when faced with life shocks. 

Ignoring financial wellbeing leaves a blind spot in workforce planning, while embracing it delivers measurable advantages in engagement, performance and retention.

Financial wellbeing is not simply a benefit. It is a strategic tool that allows HR leaders to futureproof their workforce. 

Employees do not leave organisations because of a lack of skills. 

They leave because they feel unsupported in the realities of their lives. 

By embedding financial capability into the workplace, employers are investing not only in resilience and productivity, but also in the long-term health of their organisation and the people who make it succeed.