Financial wellbeing is now a strategic priority for employers, according to new research from the Reward & Employee Benefits Association (REBA) in partnership with WEALTH at work.

The research, based on responses from 186 employers representing 1.2 million UK employees, demonstrates how financial wellbeing has evolved from a standalone employee benefit into a core component of workforce strategy.

Almost every employer surveyed identified a clear connection between financial wellbeing and employee wellbeing outcomes. The research found that 99% believe financial wellbeing is important for employees' mental wellbeing, while the same proportion say it plays an important role in engagement and motivation. In addition, 96% recognise financial wellbeing as an important contributor to workforce health.

The business benefits are equally compelling. More than nine in ten (91%) employers say financial wellbeing is important for improving productivity and performance, while the same proportion believe it supports workforce planning and organisational sustainability. Furthermore, 93% view financial wellbeing as important for retaining talent and 94% for attracting talent. A further 87% see financial wellbeing as an important tool for reducing people-related risks.

These findings come at a time when financial wellbeing remains a challenge for many people. Mintel’s new research found that 32% of adults rate their financial wellbeing as poor, whilst financial wellbeing is considered the weakest area of overall wellbeing.

Jonathan Watts-Lay, Director, WEALTH at work, comments: "The findings reflect a growing recognition among employers that financial concerns can have a significant impact on employees' lives. When employees feel more financially secure, they are better able to focus on their work and make informed decisions about their future.

“This research shows that organisations are increasingly embedding financial wellbeing into broader wellbeing and people strategies, rather than treating it as a standalone initiative. Financial wellbeing is no longer viewed as simply a 'nice-to-have' employee benefit. Instead, it is becoming a core element of employee wellbeing strategies, supporting workforce wellbeing, engagement, retention and productivity.

“Based on our experience, the most effective programmes are those that take a strategic, long-term approach, providing employees with the financial education, guidance and support they need at every stage of their lives. By doing so, employers can help build financial resilience while supporting better outcomes for both employees and their organisation."