How employers can reduce festive financial pressure - and set their people up for year-round success
The festive season is meant to be magical, but for many, it's a time of massive financial stress.
With living costs continuing to bite and the Shopping for Christmas 2024 Report predicting a rise in holiday spending, it’s likely that your people will be feeling the pinch well into the new year.
The plus side? As an employer, you're in a great position to make a real difference to your people's wellbeing.
In this blog, we'll breakdown the latest holiday spending trends, the money worries your team might be facing, and simple, practical ways you can help lighten the load this Christmas - and beyond.
Footing the festive bill
For a lot of people, covering the cost of Christmas means dipping into savings, using credit cards, or cutting back elsewhere - leaving them stretched thin during what's supposed to be the happiest time of the year.
And with UK consumer spending on festive essentials set to hit £11.35bn in 2024 (up by 0.8% from 2023), it's clear that festive financial strain is steadily growing.
In fact, to fund Christmas this year:
- 19.3% of people will use a credit card
- 19.9% will break into their savings
- 4.3% will take out a payday loan
Plus, UK consumers are predicted to spend:
- £2.32bn on travel expenses
Factor in the cost of Christmas parties, festive nights out and the seasonal spike in utility bills, and it's no wonder your staff are left feeling less than jolly…
The hidden costs of the holidays
Festive financial pressure doesn't just hurt employees’ wallets - it can also cause their emotional wellbeing to take a hit.
For those already struggling with everyday expenses or battling seasonal conditions like SAD (more on that here), the extra financial burden can be overwhelming and show up in ways like:
- Lower focus & productivity
- Feeling guilty or shameful
Empowering staff with more than just pay
Supporting your team's financial wellbeing isn't just for Christmas - it should be a priority all year long.
Just like mental and physical health, financial wellbeing impacts how your staff feel, perform and engage at work.
By prioritising it, you can help to reduce stress-related absences, boost productivity and foster loyalty. Plus, you'll earn yourself a reputation as an employer who truly cares.
Here’s how:
- With two-thirds of people using their salary to pay for Christmas this year (66%), you could look to advance salaries towards the end of the year
- Small one-off incentives packaged up as holiday bonuses or good-will support for living costs can help your people pay their winter energy bills
- Promote financial education and healthy money habits through regular webinars and access to financial planning resources
- Help staff save on commuting and childcare costs by introducing flexible working where possible
- Even after Christmas is over, the financial strain can stick around, making it harder for employees to get back on their feet in the new year. Supporting your people with flexible pay options, salary sacrifice schemes and retail discounts can help them recover and show that you’ve got their back when it matters most.
From festive stress to new year success
By taking a consistent approach to supporting financial wellbeing, you can help your staff face and bounce back from the festive fallout – enabling them to form healthier spending habits and continue to bring their best selves to work.
The result is a happier, more focused workforce that’s not just ready to take on 2025, but thrives through it.
And that can pay off for everyone.
All figures taken from: Shopping for Christmas 2024: The Christmas Period
