Beyond pay rises: A financial resilience framework for high-performing organisations

Across the UK, economic pressures continue to weigh on households, creatingknock-on effects that businesses can no longer ignore. In the UK and Ireland, 92% of employees experienced financial stress over the past year, and 89% say that stress has affected their work.

Financial stress is now one of the most significant contributors to declining workforce wellbeing, and employers are grappling with its consequences. This is no longer a peripheral HR issue; it is a core business challenge affecting productivity, talent retention and organisational resilience.

As margins tighten and workforce expectations shift, the question for leaders is no longer whether they can afford to support employee financial resilience; it's whether they can afford not to.

The productivity drag business can no longer ignore

The commercial impact of widespread financial stress is significant. Analysis from Forrester Boyd calculated that lost working days caused by employees taking time off due to financial stress cost UK employers £10.3 billion in a single year.

Absenteeism is only part of the picture. A far larger, often invisible cost comes from presenteeism, when employees are physically present but performing at a reduced capacity. Deloitte’s analysis places the annual loss to UK businesses from presenteeism at £24–28 billion, driven by reduced productivity, impaired focus and declining decision-making quality. The sleep loss, fatigue and even high blood pressure that come with this underlying stress all contribute to an erosion of performance over time.

Together, these forces create a prolonged and often hidden drag on organisational output - one that grows quietly unless proactively addressed.

Why rising wages haven’t solved the issue

During the height of the cost-of-living crisis, many businesses leaned on tactical responses: pay rises, cost-of-living bonuses or temporary uplift schemes. Today, inflationary pressures, higher operating costs, and slowed real wage growth mean businesses can no longer rely on salary interventions alone.

With median pay falling by 1.5%, this is no longer a payroll problem. It’s a resilience problem that, if left unaddressed, will quickly translate into a performance issue.

A framework for business-led financial resilience

Against this backdrop, boards and executive teams now face a crucial question: how can they support financial resilience in a way that strengthens performance without exacerbating fixed employment costs?

A new model is beginning to take shape, one that moves beyond short-term financial boosts and instead focuses on building long-term stability, capability and financial confidence across the workforce. This approach centres on practical, scalable interventions that reduce financial vulnerability and equip employees to manage uncertainty more effectively.

1. Reduce the reliance on high-cost personal credit

Salary deduction schemes allow employees to spread the cost of essential purchases interest-free, reducing the likelihood of spiralling debt and stress.

2. Provide accessible financial education at scale

With 39% of adults lacking confidence in managing money, education delivered digitally or through expert-led content can create measurable behavioural improvements.

3. Offer structured financial planning support

With only 9% of UK adults receiving professional financial advice last year, most are navigating major financial decisions alone. Access to planning tools or advisers helps employees stabilise their financial trajectory and reduces long-term stress.

4. Enable savings and debt reduction through payroll

Payroll-linked savings and employer-supported debt consolidation can help employees build emergency funds and exit high-interest debt, crucial foundations for financial resilience.

These interventions do not require large cash outlays. They require infrastructure and commitment, which is why they belong at the executive, not HR, level.

The commercial case: Resilience delivers ROI

Financial resilience initiatives are no longer “wellbeing perks”; they are high-ROI operational strategies. Deloitte’s latest analysis finds businesses see an average of £4.70 returned for every £1 invested in workplace wellbeing - a 470% ROI. ‑ROI operational strategies.

These returns come from:

• Higher productivity - reduced presenteeism and stronger cognitive performance
• Lower absenteeism - fewer stress-related sick days
• Better retention- reduced turnover costs, typically equivalent to 6–9 months' salary per leaver
• Greater engagement and innovation - employees with bandwidth to focus and contribute at full capacity

For CEOs tasked with driving performance through uncertain economic conditions, these are not soft benefits. They are business levers.

Looking ahead, the businesses most likely to outperform will be those that treat financial resilience not as a welfare issue, but as a strategic imperative linked directly to productivity, retention, and organisational performance.

In a climate where every percentage of productivity matters and talent competition remains fierce, investing in employee financial resilience is not a cost; it is one of the most effective levers leaders can pull in 2026