The growing promise of ERGs: a cost-effective solution for financial stress

Introduction

Picture this: It’s payday, yet an employee is already stressed about making ends meet. Rent is due, bills are piling up, and an unexpected expense just hit their account. They don’t want to talk about it at work because money feels like a private matter and they blame themselves. They’re struggling to concentrate and spend their breaks googling quick fixes to their money problems.

What if their company provided a space where financial stress wasn’t taboo? A place where employees could share concerns, learn from each other, and access valuable support? A place that encouraged engagement in workplace support and contributed to a culture where employees belonged and brought their best selves to work?

Enter Employee Resource Groups (ERGs).

Financial stress is one of the biggest challenges employees face today, affecting performance, mental wellbeing, and even long-term retention. While companies recognise the importance of financial wellbeing, budgets for dedicated programmes are often tight. That’s where ERGs step in: offering a low-cost, high-impact way to foster financial resilience in the workplace while advancing broader corporate goals like DEI, employee wellbeing, and ESG initiatives.

A recent report from software company Benevity found that 61% of employers plan to increase their ERG budgets this year, with 86% of business leaders recognising ERGs as a vital part of workplace culture. Yet many organisations still overlook their potential in financial wellbeing. By investing in ERGs, companies can build a more financially secure workforce while strengthening overall business performance.

The growing need for financial wellbeing support in the workplace

Employees are facing unprecedented financial challenges. A higher cost of living means that even those on steady salaries are struggling to make ends meet. According to a study of 10,000 employees by LCP in 2024, 52% of respondents felt financial pressure was impacting their job performance.

When employees are financially stressed, they are more likely to:

• Lose focus and be less productive

• Take more sick days due to stress-related health issues

• Look for higher-paying jobs elsewhere, increasing turnover rates

• Experience poor mental health, affecting their overall wellbeing

Despite these challenges, many employees feel uncomfortable discussing money-related stress with their employers. This is where ERGs can step in as a vital support system.

Creating a safe space for money conversations

Talking about money can feel awkward, even among friends, let alone at work. Many employees struggle in silence, afraid of judgement or stigma. But financial stress isn’t just a personal issue; it’s a business issue, impacting focus, morale, and productivity.

ERGs can offer a safe, judgement-free space where employees can have real conversations about money. Whether it’s through peer mentoring, anonymous Q&A sessions, or informal “money chats” over coffee, these groups help normalise financial discussions and break down barriers.

One company’s ERG launched “Finance Fridays,” where employees could drop in for casual, peer-led discussions on budgeting, debt, and savings. What started as a small group quickly grew, with employees reporting lower financial stress and a stronger sense of community. When employees feel supported in their financial wellbeing, they’re more likely to engage, contribute, and stay with the company long-term.

Connecting employees to financial resources

Many companies offer financial wellbeing benefits like retirement plans, debt counselling,  and employee assistance programmes, but employees often don’t know they exist or how to access them. ERGs can bridge this gap by:

• Acting as a hub for financial resources, ensuring employees know what’s available

• Partnering with HR and benefits teams to host financial literacy sessions

• Sharing financial tools and government support programmes employees might not be aware of

By ensuring employees have easy access to financial education and resources, ERGs empower them to take control of their financial health, leading to better focus, higher engagement, and reduced absenteeism.

Advocating for financial wellbeing policies

ERGs are a powerful voice for employees, helping shape company policies that promote financial wellbeing. They can advocate for benefits such as:

• On-demand pay, allowing employees to access earned wages before payday

• Financial coaching programmes tailored to different income levels

• Employer-sponsored financial education workshops

• Childcare and commuter benefits to reduce financial strain

Additionally, ERGs can highlight financial pain points to leadership, whether it’s the rising cost of commuting, challenges with salary transparency, or a need for improved parental financial support. Companies that listen to ERGs and adjust policies accordingly foster a culture where employees feel valued and heard, driving both morale and retention.

Hosting financial wellbeing events and initiatives

ERGs can bring financial wellbeing to life by organising interactive events that educate and empower employees. Consider:

• Guest speaker events featuring financial wellbeing experts who offer practical tips

• Money management workshops covering budgeting, debt reduction, and savings

• Peer-led support groups where employees share experiences and financial strategies

• Lunch-and-learns on practical financial topics like investing, pensions, and cost-of-living hacks

By making financial wellbeing a regular conversation, ERGs help employees build confidence and skills to navigate their financial futures, ultimately benefiting both the individual and the company.

Building partnerships with financial wellbeing experts

ERGs don’t have to do it alone. Partnering with financial wellbeing organisations, charities, or training providers can enhance the impact of their efforts. Bringing in external expertise ensures that employees receive credible, actionable financial support while reinforcing the organisation’s commitment to employee wellbeing.

One such solution is Money First Aid training, which equips ERG members with the knowledge and skills to support colleagues experiencing financial challenges. This training not only helps ERG members feel more confident in having financial wellbeing conversations but also strengthens the overall effectiveness of the ERG in addressing financial stress in the workplace.

Imagine an ERG where members are trained to confidently discuss financial wellbeing, signpost relevant resources, and foster a culture of financial resilience. That’s the power of expert partnerships, and a strategic, affordable investment for any employer.

Measuring ERG success and maximising business impact

For ERGs to drive real change, companies should:

• Secure leadership buy-in: visible support from senior leaders boosts credibility

• Set clear goals: define what success looks like for financial wellbeing initiatives

• Collaborate with HR and benefits teams: align ERG efforts with company resources

• Make initiatives inclusive: ensure financial wellbeing support is accessible to all employees

• Regularly communicate ERG activities: use newsletters, internal communication channels, national campaigns and employee testimonials to raise awareness

• Measure impact:track engagement, satisfaction, and business outcomes, such as reduced absenteeism or improved employee retention.

Companies that integrate ERGs into their wider employee wellbeing strategy see measurable benefits, from increased financial confidence among employees to a more engaged workforce.

Conclusion

Financial stress is a growing workplace concern, but ERGs offer a powerful, cost-effective solution. By creating safe spaces for money conversations, connecting employees to resources, advocating for policy change, and fostering peer support, ERGs help build financially resilient workplaces and stronger, more productive companies.

Employers looking to enhance the impact of their ERGs should consider Money First Aid training, which equips ERG members with the knowledge and skills to support their colleagues effectively. Investing in financial wellbeing isn’t just good for employees,it’s smart business.

Get in touch with us to find out more.