5 Reasons Why Your SMB Isn't Doing Enough for the Financial Wellness of Your Workers

1 in 5 employees don’t feel financially supported in the workplace. With just under 20% of workers claiming that their employer is not doing enough to support their financial well-being, research suggests that this factor alone will continue to drive turnover in 2025.

Research by the CIPD further reveals that less than half of UK workers said their pay is enough to help them save for retirement, and a further 1 in 8 employees worry that their pay cannot support an acceptable quality of life.

The question is, what can employers do to fix this in an era of rising inflation? Let’s take a closer look at some of the reasons your SMB might be financially failing its employees and how you can fix it before it's too late.

5 Reasons Why Your SMB Is Failing at Financial Wellness

There are plenty of reasons your employees might be feeling the pinch at the moment, but did you know that your company could be behind some of their most significant financial struggles?

Here are some of the reasons why most SMBs fail at financial wellness in 2025:

• Lack of Expertise: You may have plenty of skills that are crucial to succeeding in your industry, but if your financial management skills are not up to par, your employees could suffer.

• Budget Constraints: Inflation is high, coming in at just under 4% in the UK in 2025. This poses a real challenge for modern-day SMBs operating on a tight budget: financial wellness initiatives may be viewed as an additional cost rather than a strategic investment for your employees.

• Different Priorities: Naturally, as a company leader, you’ll have other financial priorities than your employees. However, this can often lead to financial neglect of employee wellness. With more immediate concerns such as sales and product development, it’s no surprise that your employees' economic wellness may be on the back burner.

• Lack of Communication: You may already have financial benefits packages available, but do you communicate this to your employees? Lack of communication is a direct driver of employee turnover in the UK.

• High-Pressure Environment: SMB workplaces are demanding, especially as you continue to scale operations. With a lack of time and competing priorities, you may find it challenging to implement and run financial well-being workshops for your employees.

This lack of focus on financial wellness could play a key role in an employee’s dissatisfaction in the workplace.

A whopping 50% of employees say financial pressures affect their job performance and push them to seek new opportunities during economic hardship.

How To Prioritise Financial Wellbeing in The Workplace

If you’re dedicated to improving your employees' financial wellness, here are some of the ways to prioritise economic well-being in your SMB strategy. 

Support Long-Term Financial Well-Being

In the UK, the minimum wage is just £22,222 per annum, so it’s no surprise that employees are fearful for their financial position.

As budgets tighten and inflation continues to rise, workers are rightly worried about how they’d cope when facing a financial shock.

As an SMB, it’s essential to have policies in place that support employees during financial hardship. From sick-pay to paid bereavement leave, each of these financial protocols helps your employees feel supported in the workplace and respected by their employer.

Benefit packages, such as competitive maternity pay or a retirement fund scheme, are key if you want your workers to feel less worried about an uncertain economic future.

Invest in Financial Education

Not all financial wellness strategies have to cost 10% of the budget. Sometimes, all workers need is some support with how they handle their own finances.

Offering regular workshops or even one-to-one coaching could help workers build financial confidence.

For example, for those facing debt, access to management programmes or counselling could significantly reduce the stress that affects their workplace performance.

Another factor to consider is retirement guidance. If you’ve got an ageing workforce, setting up workshops on how to actively prepare and save for retirement is a brilliant way to help older workers feel supported.

Communicate the Benefits You Offer

If you do offer financial benefits as a part of your employment package, shout it from the rooftops.

From salary sacrifice schemes to employee discount perks, be as transparent as possible with your staff.

Not only will this attract more top talent to your company, but it also ensures that current employees are taking advantage of it. 

Create Progression Plans With Employees

Hosting regular salary reviews is the key to keeping employees on board in a challenging financial landscape.

Regular meetings to discuss employee progression allow employees to share any concerns about their current pay packets and demonstrate how they are adding value to the company.

While each salary review might not result in a raise, it can motivate employees to stay engaged in their roles and work towards promotions and unique perks.

Why Now is The Time to Act

Did you know that the majority of financial benefits strategies were implemented up to 20 years ago? 

The UK's economic landscape has changed significantly since then. As workers continue to tighten their belts, the cost-of-living crisis is forcing businesses to review their financial wellness strategies.

If you’re yet to consider this as an SMB, it might be time to go back to the drawing board. Companies that prioritise employees' financial security will undoubtedly come out on top in an era when economic wellness has never been more critical.