The ROI of Financial Wellbeing: Why it’s time HR took it seriously

For years, financial wellbeing has been seen as a ‘nice to have’ in the HR toolkit. Sure, it’s had its peaks and troughs, and somewhere along the line wellbeing officers had their fifteen-minutes of fame. The fact is, though, that having something that complements employee assistance programmes (EAPS) and health benefits is smart – so why is it rarely a boardroom priority?

Financial stress is a business issue

Rising living costs, wage stagnation, and heightened employee expectations mean that financial wellbeing is back in the spotlight (again). According to CIPD research, over 60% of employers report increased requests for financial support from their people this year, reaffirming that the need for wellness solutions has not diminished. We know that employees that are worried about money are more likely to experience stress, anxiety, and burnout and this will affect them in the workplace. Poorer engagement will lead to time off, and could even see valued staff leave the business altogether.

One recent survey found that one in three employees would change jobs for better financial wellbeing support. One in three. In a tight talent market, that should be a wake-up call for HR leaders.

The cost of doing nothing

When financial wellbeing is ignored, the costs show up in productivity and retention metrics. Presenteeism, whereby employees are distracted by financial concerns, can cause organisations to lose an estimated five hours of productivity per week. Turnover is affected as replacing an employee costs 30-50% of their annual salary, not including the hidden costs of lost expertise and onboarding time. Finally, engagement suffers as financially stressed employees are twice as likely to disengage from their role.

So, the question isn’t whether you can afford to invest in financial wellbeing but whether you can afford not to.

What ‘good’ financial wellbeing support looks like

While pay will always be part of the equation, financial wellbeing is about more than salary. The most effective employers are taking a holistic approach that combines practical benefits like salary sacrifice schemes, earned wage access, and retail discounts that make everyday life more affordable. This multi-faceted approach is seeing results.

Education and tools which can include access to budgeting workshops, online resources, or one-to-one consultations with financial experts are also proving effective. Culture and comms is a critical element as that helps to embed financial wellbeing into your employee value proposition. Communicating benefits clearly and consistently is an essential component of this. It’s about helping employees feel in control of their finances, not just providing a one-off benefit.

Making the ROI case to leadership

For many HR leaders, the challenge is making the case to the C-Suite but thankfully, the ROI is crystal clear. A robust financial wellbeing strategy can deliver results to help reduce absence (which can be easily measured); can result in higher retention as people who feel supported are less likely to leave, and engagement will improve as workers focus better, morale is boosted and as a result, so too is productivity. Viewed with a strategic lens, financial wellbeing supports people while building performance.

The employee-owned advantage

At My Staff Shop, we’ve seen first hand how employee-owned organisations can lead the way. Our employee-owned trust (EOT) structure means that we are uniquely focused on what matters most to employees. That includes ensuring financial wellbeing tools are accessible, relevant, and practical. From one-to-one benefits consultancy to innovative salary sacrifice schemes, we’ve built financial wellbeing into the heart of our proposition.

Final thoughts

The financial wellbeing agenda is no longer on the fringes of HR. It’s become a core part of the benefits armoury. In order to build resilience, we need to put the support blocks in place. To get the high-performance we want, investment in financial education is key.

As employee expectations shift and financial pressures grow, HR leaders have an opportunity to reframe financial wellbeing as a foundation in its business-critical strategy.

The ROI is there. The demand is there. The question is: are you ready to take it seriously?