REWARD
From debt to resilience: Why financial wellbeing starts with payroll
Joss Tasker, Chief Executive Officer and Founder, Sync Savings, shares how payroll teams and employers can help open up conversations on financial vulnerability and why it matters so much in modern society
49% of UK adults are financially vulnerable – and it’s affecting the workplace The most recent Financial Lives Survey 2024 , published by the Financial Conduct Authority, reveals a sobering headline: 49% of UK adults are financially vulnerable. That’s over 26 million people living with the persistent risk of falling behind on bills, relying on credit to make ends meet or unable to weather even a small financial shock. Financial vulnerability isn’t just a personal issue, it’s an urgent concern for families, workplaces, payroll professionals and human resources leaders alike. When employees are overwhelmed by money worries, all the data shows us that other concerns are less urgent and productivity falls, stress-related absences increase and staff turnover rises. With payroll savings, there’s a real opportunity to help employees move from debt to resilience, while driving stronger outcomes for employers too.
l nearly one in four UK workers say they worry about money ‘every day’. This paints a picture of widespread financial fragility. And an urgent need for workplace support. The workplace impact: why employers should act now It’s easy to think of money as a private matter. But it’s anything but invisible at work. When employees are struggling financially, the knock-on effects can be significant: Productivity loss Over 2.5 million private sector workers missed work due to financial issues, equating to around 13 million lost workdays. Declining productivity affected roughly 4.9 million employees according to a report by the Centre for Economics and Business Research (CEBR). One study found that up to 14% of working time is lost when employees are financially stressed. Increased absence and presenteeism People in financial distress are more likely to call in sick due to anxiety, depression or burnout. But equally harmful is presenteeism, where employees show up but are mentally checked out. Turnover and recruitment costs Workers feeling financially insecure are more likely to seek a pay rise elsewhere. The cost of replacing an employee –
including recruitment, onboarding and training – is estimated at £30,000 per role on average. The mounting real world cost of financial stress A CEBR UK workforce study found that financial stress adds another 4.9 days lost per employee per year, amounting to an employer cost of £6.2 billion annually in combined absenteeism and presenteeism. Why now is the time to start offering emergency savings While employers can’t control interest rates or inflation, they can start to identify signs of stress early and provide the tools and environment to help people build financial resilience. At the heart of that is signposting and removing the stigma around accessing free, impartial debt advice. And then, crucially, helping colleagues to build emergency savings quickly and simply through payroll saving – a simple, powerful benefit which allows employees to set aside money directly from their pay before it hits their bank account. And they get rewarded with a great interest rate for doing so. How payroll savings support financial resilience at work Dave Ramsey, the American Financial Coach, often says: “You can’t borrow your way out of debt. But you can save your way out of crisis.” Ramsey recommends starting with a
What’s the scale of the UK’s financial resilience gap?
The financial landscape is challenging: l one in 10 adults have no savings at all l more than 4.5 million people missed at least three priority bills in the last six months l over 40% of adults are carrying unsecured debt, with average balances of around £2,500 l buy now pay later usage has risen again, with 37% of 18-34-year-olds using it regularly
| Professional in Payroll, Pensions and Reward | October 2025 | Issue 114 34
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