When household budgets become a business performance issue

Financial stress doesn't clock off when employees walk through the door. And according to new research, business leaders are finally taking notice.

Gallagher’s latest survey found 65% of leaders say financial wellbeing is a business performance issue and 75% call it a key priority. Yet recognising the problem and solving it are two very different things, and the pressure to bridge that gap falls squarely on HR.

For HR teams, the opportunity is to move beyond awareness and offer practical support that helps employees feel the difference in their everyday budgets. That’s where employee benefits can play an important role.

The hidden cost of financial stress at work

Findings from Gallagher's 2026 Workplace Wellbeing Index put numbers to something HR teams already sense. Almost half (49%) of employees worry about their finances regularly. One in three say financial stress stops them switching off after hours. And 37% say it's affecting their sleep.

These pressures don't stay at home: 27% of employees say financial worries always or often distract them at work. That’s around an hour of lost focus per person per week. In a 500-person organisation, it adds up to an estimated $335,340 a year in lost productivity, before factoring in absenteeism, presenteeism or turnover.

There’s more. 33% of employees often or always work while unwell because they can't afford to take time off. 24% say financial stress reduces the quality of their work. And 23% lose productive time because of it.

Financial pressure isn't evenly spread

Gallagher's research identifies three financial wellbeing personas: Thrivers (37%), Survivors (33%) and Strugglers (30%). Strugglers are more likely to be female, under 24, in retail or hospitality, and within their first three years at a company. For women aged 18-24 in those industries with less than two years' tenure, 40% are struggling.

The flow-on effects are significant. Strugglers report 39% burnout (compared to 11% for Thrivers) and 74% presenteeism. Thrivers, by contrast, score higher on every workplace measure that matters: engagement, intention to stay, role performance and life satisfaction.

Employees are experiencing cost-of-living pressure in different ways, which means financial wellbeing support needs to be practical, relevant and easy to access. The right employee benefits can help strengthen engagement, support retention and show that employers are responding to cost-of-living pressures in a meaningful way.

Employee benefits deliver financial relief

Salary packaging and novated leasing are two of the most useful options HR has to offer in meeting the financial wellbeing challenge. They lower an employee's taxable income, smooth out running costs, and put more money in their pocket each pay cycle. That kind of relief shows up in the weekly budget, where employees feel financial pressure most. In fact, 45% of employees aged 25-44 say their workplace benefits help reduce financial stress, build loyalty and improve their performance at work.

How Maxxia can help employers respond

For HR teams, the challenge is not just recognising that financial stress exists. It’s knowing whether your current benefits program is doing enough to help. A Benefits Review can help you understand how your program compares, where it’s already delivering value, and where it could be working harder for your people and your organisation.

With practical recommendations tailored to your workplace, you can identify opportunities to strengthen your benefits offering and provide more meaningful support for employees navigating cost-of-living pressures.

Book a complimentary review of your benefits program

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