Every month, I meet employees who tell me the same story: the payslip looks fine, but the money never quite lasts until life’s next surprise. On paper, many are just about managing but in reality, their finances are constantly one step behind their lives.
As a practitioner working on financial wellbeing, I believe this timing problem is now a strategic issue for every business leader in the UK.
When pay cycles collide with real life
In our new research with Dr Hayley James, Senior Research Fellow, Centre for Personal Financial Wellbeing, Aston University, Financial Wellbeing in the Workplace: Empowering employees to move from surviving to thriving, we surveyed over 1,200 employees across a variety of sectors including health and social care, hospitality, retail and manufacturing. Most were in low‑ to middle‑income households, with around two‑thirds reporting incomes under £49,000.
The most striking findings were that 70% said that they are struggling to keep up with bills or are already falling behind on financial commitments. And perhaps more shockingly only 26% said they could cover a £300 emergency from savings. These are people in work, often in essential roles, yet living with very little financial buffer.
When we asked what was driving this pressure, 52% pointed to the rising cost of living and 23% to unexpected costs such as car repairs, school expenses and essential household purchases. Just 4% said debt management itself was their main issue, which reinforces what other national studies are now showing: many households are in “deficit budgets” where outgoings simply outstrip incomings.
The overlooked role of timing and volatility
Crucially, our findings show that these challenges are not just about how much people earn, but when they can access what they have already earned. Workers in our study primarily used Earned Wage Access (EWA) to cover their essential spending. On average this broke down into: 48% for bills and rent, 42% for groceries and 38% for unexpected expenses. In other words, flexible access to pay is being used to manage liquidity, not to fund discretionary splurges.
For many, the misalignment between pay cycles and real‑life expenses is what tips them over the edge. When bills fall due before payday, or when surprise car repairs or school costs cannot be delayed, people told us they felt they had “no choice” but to seek help.
As one respondent put it: “I rely on earned wage access where I can’t wait until I get paid for unexpected bills – uniforms, lunch money, school supplies and trips. It’s a big relief for emergency bills.” They weren’t using it for treats, but for the everyday costs that don’t wait for payday.
Among frequent users of flexible pay, 42% said that without access to earned wages, they would turn to friends and family while others would reach for credit cards (27%), Buy Now Pay Later products (23%), overdrafts (22%) or even payday loans (6%).
Borrowing from loved ones may look cost‑free on paper, but our qualitative panels highlighted the emotional strain and social risk this creates. Many participants described feelings of embarrassment, anxiety and a loss of independence when they had to explain their situation to friends, colleagues or family members. Several also pointed out that the people they borrow from are often in similar financial positions, meaning that one household’s shortfall can ripple through an entire social network.
The learnings: from surviving to securing
To make sense of these patterns, we drew on a three‑phase model of financial wellbeing: surviving, securing and thriving. In the surviving phase, people are focused on getting through the month, prioritising essentials with little room to save. Securing is when they get to the point of developing resilience and balancing complex trade‑offs between today’s costs and tomorrow’s goals, while thriving involves consistent saving and longer‑term planning.
Our data suggest that tools like EWA primarily operate in the “surviving‑to‑securing” transition. They function as a liquidity bridge, helping workers manage immediate shocks in a way that reduces reliance on high‑cost or informal borrowing. When we asked users how flexible pay affected them, 67% said it helped them feel more in control of their money and less stressed between pay cycles, while 60% said it improved their confidence and ability to plan.
The qualitative stories behind these numbers were powerful. Parents talked about using earned wages early to pay for school shoes, uniforms or energy top‑ups so their children did not go without. Others used it to keep cars on the road so they could get to work, or to ease the pressure of childcare costs that did not align neatly with paydays or Universal Credit cycles. For single parents, in particular, being able to access pay when needed was described as the difference between coping and crisis.
Another lone parent told us: “As a lone parent it helps with the little things, like energy top‑ups or school shoes.” For them, being able to bring forward a portion of their salary before the end of the month meant they could cover those essentials without skipping bills or borrowing from friends and family.
Why this matters for businesses
For HR and business leaders alike, these are not abstract issues. Financial stress shows up in the workplace every day as fatigue, distraction and churn. Previous Zellis research found that 89% of employees say financial stress affects their working lives, and 78% feel that they’re able to contribute more when they are confident about their finances.
In our new study, we saw clear behavioural effects linked to flexible pay access. Nearly half (48%) of respondents who used EWA said they had taken on extra shifts or overtime as a result of having more control over when they could access earnings. Meanwhile 64% told us they are more likely to stay with their current employer when this benefit is available. For organisations grappling with staff shortages and high recruitment costs, this is a lever hiding in plain sight.
Traditional workforce planning often assumes that shift uptake is purely about availability or motivation however, our evidence suggests that pay timing is an operational variable in its own right. When employees know they can access their earnings to deal with a broken boiler or a school trip, they are more willing and able to increase their hours and remain in their roles.
Dignity, stigma and the culture of financial wellbeing
One of the most striking themes from our focus groups was the discussion around dignity. Many participants said that having access to their wages “when I need them” gave them a sense of independence and privacy: they no longer had to ask for advances, approach managers for help, or explain personal difficulties to colleagues. Several said that borrowing from friends or family had left them feeling exposed and sometimes humiliated.
Yet, paradoxically, some also talked about EWA as a “dirty little secret”. They valued the tool but worried about how others might judge them if they knew they were using it. In many organisations, employees only discovered that flexible pay existed when they were already in crisis and desperately searching for solutions, which reinforced a sense that this was something to be ashamed of.
For employers, this is a critical cultural challenge. Simply providing a financial wellbeing service is not enough. How you introduce and talk about these tools and support during induction, in benefits. communications, and through line manager training will determine whether they are seen as a positive entitlement or a last‑resort safety net. We found that managers in particular often felt unsure about promoting EWA or wider financial wellbeing support, which in turn limited uptake and deepened stigma.
Building a true financial wellbeing ecosystem
Another important lesson from the data is that no single intervention changes financial wellbeing in isolation. While 85% of users withdraw earned income and 80% track their shifts and earnings, around 40-44% are also engaging with financial education, financial health check‑ups or a benefits calculator.
Around one in two employees who use flexible pay also use at least one of these broader features. This “stacked” usage pattern is encouraging it suggests that when people have their immediate liquidity needs met, they are more able, and more willing, to engage in financial guidance and start to build their own financial resilience. We heard directly from users who had moved from using EWA for emergencies to setting up automated savings, describing a growing sense of control and confidence.
One user explained the difference this approach has made to them, “I have been able to settle some emergency bills using my salary before the end of the month. I have also started using the automated savings feature, and it’s helping me build consistency. I feel more confident and in control of how I manage my earnings now.”
For HR leaders, the implication is clear. Financial wellbeing should be treated as an integrated ecosystem, not a menu of disconnected apps. Flexible access to pay, savings mechanisms, tailored education and data‑driven guidance work best when designed as a coherent journey that moves from surviving to securing and, ultimately, thriving.
A call to action
What does this mean in practice? Firstly, recognise that financial instability among low‑ to middle‑income employees is now a structural workforce risk, not a private problem to be left at home. The fact that 70% of workers in our sample are struggling with bills, and only a quarter can cover a modest emergency, should be a red flag for any organisation that relies on their commitment and performance.
Second, look again at pay timing. Without changing base pay, you may be able to unlock significant improvements in resilience, shift uptake and retention by giving employees safe, responsible access to wages they have already earned.
Third, focus on communication and culture. If you frame financial wellbeing support as a standard part of your employee value proposition and not a crisis service for those “who can’t cope” it will shift people’s mindsets. Also equipping managers to talk confidently and positively about the tools available will help you to reach employees before they hit breaking point.
Finally, we recommend that you treat financial wellbeing as an ongoing learning process. People’s needs and behaviours evolve over time and financial wellbeing is not a tick‑box benefit; it is a core driver of workforce resilience in an increasingly volatile world.
As a researcher and a practitioner, we have reached the same conclusion from different angles: when people can access their earnings in ways that match the rhythms of their real lives both employees and employers stand to gain. The opportunity for business leaders is to move beyond seeing pay as a monthly transaction and start treating it as a strategic instrument for helping their people move from surviving to thriving.
Rachel Harte
Rachel Harte is a Chartered Financial Planner with 20 years’ experience helping people improve their financial wellbeing. She is Head of Impact at Hastee, a Zellis company, where she focuses on understanding how their solutions support employees, employers and wider society.
