Navigating the New Financial Year with Care and Empathy

As we embark on the new financial year in April 2025, it’s clear that one of the most pressing challenges facing the UK remains the ongoing impact of the economic climate. With Trump’s trade tariffs impacting globally and uncertainty around how much our weekly food shops will be, it’s no wonder everyone is feeling the pinch. Many of you reading this will have a responsibility for employees and are likely thinking about how you can support them through this difficult time, ensuring they remain engaged, psychologically safe, and financially secure.

Worrying statistics reveal that 40% of employees avoid checking their payslips, and 60% of those who experience payroll errors feel uneasy about raising the issue with their employer. Of those surveyed, 78% of employees who had poor mental health and then experienced payroll issues reported that their mental wellbeing was further exacerbated by pay-related problems.

These issues serve as a reminder of the importance of both physical and mental health, as well as the critical role employers play in providing support. It's vital to find a balance that promotes employee wellbeing while acknowledging the challenges of this current economic climate.

As the UK’s economic landscape remains uncertain, do you have clear, tangible plans in place to support your employees? Are you addressing issues on a case-by-case basis, or is there a broader strategy in place to assist your workforce?

While you may not be obligated to increase wages or cover your employees’ bills, it’s essential to consider the impact that rising energy costs, food prices, and economic instability have on your team. Understanding how your employees are coping and responding to the pressures of a cost-of-living crisis can help you make informed decisions about what support you can provide.

As we enter a new financial year, it’s a good time to review and strengthen your support plans. Your organisation’s ability to offer support can help boost morale, improve retention, and increase productivity.

Top 10 ways to support employees financial, that don’t include a pay-rise!

1. Financial education

Help employees better understand their finances. Do you have in-house finance or payroll teams? While these specialists cannot give financial advice, they can share general principles around pensions, taxes, and budgeting.

2. Pension guidance

Does your pension provider offer surgeries or sessions where employees can ask questions? Providing a space to discuss pensions and savings can help employees feel more secure about their financial future.

3. Discount platforms

Partner with discount platforms or local services to provide employees with savings on things like shopping, gym memberships, or travel. Helping employees save can make a real difference to their overall financial wellbeing.

4. Employee Assistance Programmes (EAPs)

If you have an Employee Assistance Programme, ensure employees know how to access it. EAPs are usually confidential and available 24/7, offering support for both personal and financial challenges at no cost to employees.

5. Signposting external resources

Point your employees towards resources like the The Money and Pensions Service, Citizens Advice, or StepChange—government-funded services and charity that can help with money management, budgeting, and finding access to affordable credit if needed.

6. Encourage communication

Build trust by encouraging employees to be open about their financial concerns. Understand that money worries can quickly escalate into broader mental health issues, so taking a holistic approach to employee wellbeing is crucial.

7. Pay Cycle flexibility

Are your pay cycles working for your employees? Ask them what they need—whether that’s weekly or monthly pay cycles. Being paid on a predictable day each month can help employees plan their finances and ensure they have enough for essential payments.

8. Consider bonuses

If your business is in a position to do so, offering one-off bonuses can be a great way to engage employees and show appreciation for their hard work. Even a small gesture such as a gift voucher, can go a long way during tough times.

9. Hardship Loans and Pay Drawdown

If financially feasible, you could consider offering hardship loans or pay drawdown options. These can help employees plan and access funds when needed most.

10. Discounted food vouchers and digital coupons

Digital coupon platforms and supermarket discount vouchers can be a great way to support your employees, especially as food costs continue to rise. Many platforms now offer discounts that can be used in major supermarkets, helping your team make their money go further.

Supporting employees isn’t just about offering financial help—it’s also about making them feel valued. With the current economic crisis affecting everyone differently, it’s important to offer a range of support options tailored to your workforce. Holding focus groups or conducting surveys can give you valuable insights into what your employees need most.

The key to success is empathy and communication. Listen to your employees with care, and ensure they feel heard and seen. Understanding their individual circumstances can help create a sense of belonging and loyalty within the workplace.

As we move forward into the new financial year, remember that supporting your employees through challenging times requires more than just offering financial aid—it’s about showing genuine care for their wellbeing. By taking the right steps to support them, you can help ensure that your employees remain engaged, productive, and secure, even in the face of continued economic uncertainty.