Rising living costs drive need for financial wellbeing in employee engagement, says HR Star

The rising cost of living has shifted the focus of employee engagement, placing financial wellbeing at the forefront, according to Kelly Tucker (pictured), founder and managing director of HR Star. 

She added that, in response to financial pressures in 2025, companies need to rethink how they engage their workforce. 

Tucker said: “As living costs continue to rise, companies must acknowledge the financial pressures their workforce faces and take proactive steps to support them.

“Employee engagement has always been linked to job satisfaction, career growth, and workplace culture.”

Tucker added: “However, in today’s economic climate, financial security is a key determinant of an employee’s overall wellbeing. 

“When financial stress takes hold, it affects productivity, focus, and morale. Companies that fail to address this risk disengagement, higher turnover rates, and reduced performance.”

To avoid disengagement and higher turnover, businesses must include financial wellbeing in their engagement strategies, according to Tucker.

This can involve offering financial planning resources, flexible benefits, and competitive salary adjustments.