Debt in the workplace: how employers can offer meaningful support
- Money First Aid
- Mar 25
- 4 min read
Debt Awareness Week is a timely opportunity for employers to reflect on how they can support employees facing financial difficulties. The impact of debt on employee wellbeing is significant, affecting productivity, overall job satisfaction and mental health.
For HR and people teams, implementing workplace benefits that provide financial support and education can make a tangible difference in employees’ lives.
The impact of debt on employees and the workplace
Debt can be a very personal issue which inevitably has consequences for businesses.
Employees who are struggling with debt often experience:
Increased stress and anxiety, leading to higher absenteeism
Reduced concentration and productivity at work or temporary hyper-performance to mask their stress, leading to burnout longer-term.
Difficulty focusing on long-term career growth and progression
A greater likelihood of seeking higher-paid jobs elsewhere, impacting staff retention
By recognising the impact of financial distress and taking proactive steps, employers can help alleviate these pressures and create a healthier, more engaged workforce.
Workplace benefits that support employees in debt
1. Financial education and money management resources
One of the most effective ways to support employees is through financial education. Providing access to workshops, online courses, or one-on-one financial coaching can help employees develop better money management skills and understand strategies for reducing their debt.
2. Earned wage access schemes
Many employees in financial distress turn to high-interest payday loans to cover unexpected expenses. Offering earned wage access (where employees can withdraw a portion of their earned salary before payday) provides an alternative to expensive borrowing and, when used appropriately, can prevent debt from spiralling out of control.
3. Employee Assistance Programmes (EAPs) with financial wellbeing support
EAPs traditionally focus on mental health, but some also provide financial wellbeing support, such as guidance on budgeting, debt management, and signposting to specialist financial services. Employers should ensure that their EAP provider includes access to free, confidential financial counselling.
4. Debt consolidation and repayment support
Some employers partner with financial wellbeing providers to offer structured debt consolidation schemes or low-interest loans to help employees manage their debt more effectively. This approach can be particularly beneficial for employees facing high-interest credit card debt or multiple loan repayments.
5. Workplace savings schemes
Encouraging employees to save regularly through payroll-deducted savings schemes can help prevent future financial distress. Some organisations may match savings contributions or provide incentives to encourage participation. This proactive approach builds financial resilience and reduces reliance on credit.
6. Flexible benefits that support financial wellbeing
Flexible benefits can include travel allowances, childcare subsidies, or discounts on everyday expenses. Employers should review their benefits packages to ensure they include options that ease financial burdens for employees.
7. Training employees as Money First Aiders
A growing number of organisations are training employees as Money First Aiders: trusted colleagues equipped with the skills, resources and confidence to support their peers facing a financial challenge. Money First Aiders are not financial advisors, but they are trained to:
Recognise signs of financial distress in colleagues
Offer a listening ear and guide employees to appropriate financial support
Help normalise conversations about money and reduce stigma
Signpost employees to workplace benefits and external resources, such as StepChange or the MoneyHelper service
By embedding Money First Aid training into workplace wellbeing initiatives, employers create a support system that helps employees feel comfortable seeking help before financial stress escalates.
Creating a workplace culture that supports financial wellbeing
Implementing workplace benefits is a great first step, but building a culture that encourages financial wellbeing requires ongoing commitment.
Here are some ways to create a supportive environment:
Promote financial wellbeing openly: ensure employees are aware of the benefits and support available to them. Regularly communicate about financial wellbeing initiatives through internal newsletters, posters, and team meetings. Utilising awareness days like Debt Awareness Week can be an effective way to highlight these initiatives, spark conversations, and encourage employees to seek available support.
Encourage senior leadership buy-in: when leadership teams actively endorse financial wellbeing initiatives, employees are more likely to engage with them.
Normalise financial conversations: encourage open discussions about money by hosting workplace events during initiatives like Debt Awareness Week, where employees can learn more about financial wellbeing in a non-judgemental setting.
Measure impact: regularly assess the effectiveness of financial wellbeing benefits through employee feedback and adjust programmes as needed to meet staff needs.
Why supporting employees in debt benefits everyone
Supporting employees struggling with debt is not just a compassionate value-add in the workplace: it makes good business sense. Financially secure employees are more engaged, productive, and loyal to their employers. By offering practical workplace benefits and training employees as Money First Aiders, organisations can play a crucial role in helping their workforce build financial resilience and navigate debt challenges with confidence.
This Debt Awareness Week, take the opportunity to assess how your organisation can enhance its financial wellbeing strategy. By doing so, you create a workplace where employees feel supported, valued, and empowered to take control of their financial futures.
Find out how Money First Aid can support your company.
تعليقات