Reimagining Employee Wellbeing: The Role of Anytime Pay in Supporting Financial and Mental Health

Three out of five UK employees say that financial stress has affected their mental health according to a recent survey by HR News. Even as inflation stabilises, many continue to feel the pressure of the cost of living crisis.

Most organisations aren’t ignoring the issue and have invested in mental health support, employee assistance programmes, and wellbeing initiatives. Despite these efforts, stress levels are actually increasing, according to recent data from the CIPD.

The challenge is that when financial insecurity is at the root of anxiety, mental health support can only go so far.

Our article explores the link between financial stress and employee wellbeing, and why traditional support measures often fall short. We then discuss the practical interventions you can take to support staff wellbeing holistically based on Deel’s hands-on experience helping UK employers manage payroll and compensation.

Money stress and mental health: Why UK employers should care

Financial stress directly affects wellbeing. Three out of five people say that it has negatively impacted their mental health, in many cases leading to depression.

Many UK employees carry this strain into the workplace. According to the CIPD, mental health issues are the top cause of long-term absences and the second biggest cause of short-term absences. Over time, these higher levels of absenteeism are likely to result in significant productivity loss and operational disruption.

Organisations are introducing more wellbeing initiatives to improve workers’ mental resilience. However, only 50% say they’re seeing any results. The issue is that many focus on physical health or counselling but don’t tackle the cause of the problem: financial insecurity.

In fact, only half of companies say they have a financial wellbeing strategy despite the ongoing cost of living crisis.

By proactively addressing one of the root causes of the issue, your organisation can significantly reduce employees’ financial stress. You can then create the conditions for lower rates of absenteeism, higher productivity levels, and a more overall positive workplace environment.

Practical steps to support financial wellbeing

For a financial wellbeing strategy to be effective, it has to become part of day-to-day practice at your organisation. Here are some steps for integrating that strategy into your processes:

Develop fair and transparent compensation practices
The first step to relieve money-related anxiety is ensuring employees can rely on their pay. This involves conducting a thorough review of your compensation strategy and checking that wages are competitive.

Start by confirming everyone has a strong baseline salary aligned to industry standards. You should consider their position, exact location and seniority level, not just what you typically pay employees. Deel has a free Salary Checker tool you can use to quickly get reasonable estimates for different roles in the UK.

Afterward, clearly outline how employees can move from one pay level to another. Deel’s Compensation module can help you create custom bands based on your organisation’s unique hierarchy and benchmarking data. These frameworks show employees what to expect as they progress in their careers and support long-term financial planning.

Provide access to financial education & planning resources

81% of UK workers admit they could be better at saving money. Organisations can help them by investing in more training resources and educating teams about income tools to improve their financial management skills.

Financial education workshops can give teams practical guidance they can quickly apply. These can cover a range of scenarios such as building a monthly budget, planning for significant expenses, and managing variable costs. You can either develop these training sessions in-house using tools like Deel’s Engage or sign up employees for external courses.

Budgeting tools can support employees as they develop these skills. Consider offering them subscriptions to apps like You Need a Budget and PocketGuard as part of your incentives package.

Offer on-demand earnings access

As many UK workers don’t have savings, they’re particularly vulnerable to financial shocks. One large repair bill could set them back for the month, increasing their stress.

Earned wage access (EWA) can give them the control they need to stabilise their household cash flow. Instead of making them wait until the end of the payroll cycle, let them withdraw money as they earn it. This reduces the need to rely on overdrafts, predatory payday loans, and credit cards that often come with high interest rates.

Tailored support
While financial stress is widespread, the causes are varied. Employees may be struggling with loans, supporting vulnerable family members, or saving for the next stage of their lives.

Recognise these differences by offering personalised support on top of broader financial wellbeing initiatives. You can incorporate these into individual benefits packages. Here are just some ideas for what to introduce at your organisation:

• Emergency cash access programs
• Sessions with financial coaches
• No-interest loans
• Childcare cost assistance
• Financial wellbeing helplines
• Saving plans

Consider offering these as a flexible allowance. You can offer a selection of popular benefits and let workers choose the ones most relevant to them. Afterward, track employee financial wellbeing programs so you can see which ones are performing well and which ones to cut.

How Anytime Pay helps optimise payroll for mental health

Anytime Pay with Deel lets employees access earned wages instantly, with multiple withdrawals allowed within a single pay cycle. This gives them complete financial control. Even if they get hit with multiple unexpected expenses in the same month, they can quickly access the money they need.

There’s no downside for your business. Anytime Pay transfers don’t involve any fees for either employers or employees, and there’s no need for approvals. Plus, it doesn’t require any extra administration as Deel automatically deducts the amount from the worker’s next paycheck and records it in the system.

Many companies only allow employees to access pay up to a week early. By offering Anytime Pay, you not only support your team’s financial wellbeing but also strengthen your employer brand and gain a competitive advantage in the labour market.

See how you could give your employees more financial control and explore Anytime Pay now.

Looking ahead: Building a financially healthy workplace

Financial management must sit alongside physical and mental health in formal wellbeing strategies. Rather than treating it as an optional add-on, it must be a strategic priority to ensure employees have the support they need.

Developing a financial wellbeing strategy has never been more important in the UK with ongoing cost pressures. Employers that acknowledge these issues early and incorporate these wellbeing initiatives into their compensation and benefits management can get ahead of the challenges. That’s how you stand the best chance of building engaged, resilient, and financially confident workforces.