Employee Financial Wellbeing: ESG Benefits That Deliver ROI

Employee Financial Wellbeing: ESG Benefits That Deliver ROI

June 2026



As rising living costs continue to impact employees across the UK, financial wellbeing has become a critical workplace issue. Increasingly, organisations are recognising that fair pay and workplace benefits are central to ESG performance, employee retention and long-term business success, as well as being essential for employee wellbeing. 

Financial wellbeing sits firmly within the social pillar of ESG, reflecting how organisations support fair pay, financial resilience and quality of life for their workforce. Businesses that invest in employee financial wellbeing are increasingly seeing measurable benefits, from improved engagement and productivity to stronger retention and organisational resilience. 

NATIONAL VS REAL LIVING WAGE 

On 1st April 2026, the UK National Living Wage rose to £12.71 per hour for over-21s, reflecting the increasing cost of living across the UK (Low Pay Commission, 2026). While this was a welcome increase for many workers, rising housing, energy, transport and everyday expenses continue to place significant pressure on household finances. 

Recent YouGov (2026) data found that 58% of Britons are either “just about keeping up” or “falling behind” financially, highlighting the growing importance of workplace financial support. 

For this reason, many employers are choosing to go beyond statutory requirements. The real Living Wage, independently calculated by the Living Wage Foundation, is currently set at £13.45 per hour (£14.80 in London) and is now paid by more than 16,000 UK employers (Living Wage Foundation, 2026). 

However, supporting employee financial wellbeing goes beyond salary alone. 

HOW EMPLOYERS CAN SUPPORT EMPLOYEE FINANCIAL WELLBEING

Many organisations are now introducing workplace benefits designed to improve employees’ financial resilience and reduce day-to-day financial stress. 

These initiatives can include:  

  • Cycle to Work schemes to reduce commuting costs  

  • Flexible working arrangements that minimise travel expenses  

  • Financial education and guidance, including budgeting and retirement planning 

  • Salary sacrifice schemes such as pensions and childcare  

  • Employee Assistance Programmes (EAPs) offering confidential financial advice 

  • Discount platforms and benefits portals that reduce the cost of everyday spending. Together, these initiatives can help employees feel more financially secure while creating a more supportive and people-focused workplace culture. 

THE BUSINESS BENEFITS OF FINANCIAL WELLBEING INITIATIVES

Financial wellbeing is increasingly recognised as a driver of employee engagement, productivity and business performance. 

Andrew Horne, Corporate Financial Adviser at Continuum Financial Services

Andrew Horne, Corporate Financial Adviser, Continuum Financial Services

Andrew Horne, Corporate Financial Adviser at Continuum, the first UK financial advice firm to achieve ESGmark® Certification, explains: 

“In today’s challenging economic environment, employee financial wellbeing is no longer a ‘nice to have’ - it’s a critical component of business success... Investing in financial wellbeing initiatives not only supports employees but delivers a measurable return on investment for employers.” 

The consequences of neglecting employee financial wellbeing for businesses can include higher absenteeism, reduced productivity and increased employee turnover, which in turn lead to greater recruitment and training costs for businesses (CIPD, 2025; PwC, 2026). 

Conversely, organisations that invest in workplace financial wellbeing often see measurable improvements in employee performance and engagement. 

Andrew adds:  

“Financial stability allows employees to concentrate on their work without the constant distraction of money worries... This translates into higher productivity, better decision-making and stronger business performance.” 

The commercial benefits are already being seen in practice. For one retail client implementing Continuum’s workplace benefits offering, the cost of the package was 12% lower than the company's previous offer to employees and at the same time, there was a 30% increase in employees using it. Meanwhile, a technology-sector client achieved a 20% reduction in staff turnover following the introduction of a tailored employee benefits programme. 

These examples shared by Continuum clearly reflect the positive return on investment for businesses, by developing their Social credentials.  

 

HOW CONTINUUM WORKPLACE SUPPORTS ESG AND BUSINESS GOALS

With this in mind, organisations are increasingly adopting more structured approaches to support their workforce. Continuum’s Workplace offering brings together a comprehensive range of services - including workplace pensions and auto-enrolment, private medical insurance, hospital cash plans, life insurance, critical illness and income protection, alongside financial wellbeing programmes and employee discount schemes - to help employers build benefits packages that align employee wellbeing with wider business goals. 

By integrating these services into one tailored package, Continuum Workplace enables organisations to strengthen recruitment and retention, enhance employee engagement, and build a more resilient workforce. 

KEY TAKEAWAYS

  • Financial wellbeing is becoming a core ESG priority for employers  

  • Workplace financial benefits support employee resilience and wellbeing  

  • Financial stress can negatively impact productivity, engagement and retention 

  • Businesses investing in employee financial wellbeing are seeing measurable positive returns  

  • A strong financial wellbeing strategy supports both social value and long-term business performance  

Ultimately, beyond enhancing workplace benefits, organisations that invest in employee financial wellbeing are building stronger, more resilient and more sustainable businesses. 

Want to strengthen employee wellbeing while supporting your ESG goals? Continuum Workplace helps organisations create tailored benefits packages that improve retention, engagement and financial resilience. To learn more or be introduced to the team, contact us today. 

Continuum Financial Services LLP is authorised and regulated by the Financial Conduct Authority. The company was named Adviser Firm of the Year – Large at the Professional Adviser Awards 2026.

Sources 

CIPD (2025). CIPD | Analysis | Why should employers take action on employee financial wellbeing? [online] CIPD. Available at: https://www.cipd.org/uk/views-and-insights/thought-leadership/insight/action-employee-financial-wellbeing/. 

Gallagher (2024) More than half (51%) of UK companies name employee benefits costs as a top financial challenge. Arthur J. Gallagher & Co. Available at: https://www.ajg.com 

Living Wage Foundation (2026) National Living Wage rise welcomed – millions still short of real Living Wage. Available at: https://www.livingwage.org.uk/news/national-living-wage-rise-welcomed-millions-still-short-real-living-wage  

Low Pay Commission (2026). National Living Wage increases to £12.71 per hour. [online] GOV.UK. Available at: https://www.gov.uk/government/news/national-living-wage-increases-to-1271-per-hour. 

PwC (2026) Employee Financial Wellness Survey 2023. PwC. Available at: https://www.pwc.com/us/efwsurvey 

YouGov (2026). Getting by or getting ahead? Great Britain debt, savings and investment report 2026. [online] Yougov.com. Available at: https://yougov.com/en-gb/reports/54529-uk-debt-savings-investment-report-2026.

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