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The workplace is evolving at breakneck speed, putting both skills development and financial wellbeing for employees under immense pressure.
For many, this pressure can lead to burnout and stress. In this blog, we explore the growing link between the skills gap, stress, and performance. We then investigate how HR and business leaders can help by embracing a strategic, data-driven approach that improves financial wellbeing and, in turn, reduces stress and boosts performance.
In this blog
The link between skills, stress, and performance
Bridge the skills gap and boost financial wellbeing for employees
Conclusion and key takeaways
The link between skills, stress, and performance
The growing pressure to upskill
The UK has a chronic skills gap. In fact, seven million UK workers – that’s 20% of the labour market – could be significantly under-skilled for their roles by 2030, according to research from the Industrial Skills Strategy Council.
This has wide-ranging implications. When employees lack the necessary skills to do their jobs properly, their workload feels increased due to the additional effort needed to complete tasks. . In fact, almost half (41%) of UK workers have faced a significant increase in their workload, according to PwC’s Workforce Hopes and Fears Survey, with 62% noting an accelerated pace of workplace change.
The rise of stress and risk of burnout
With increased pressure at work comes added stress. Corndel’s 2025 Workplace Training Report found that one in two employees feel workplace anxiety weekly. Meanwhile, Robert Half’s 2025 Candidate Sentiment Survey found that nearly two-thirds of UK workers are concerned about burnout.
This workload-related stress only exacerbates stress from other work-related sources. The PwC research found that the majority (52%) of employees are financially stressed, andwhile a significant number say recent changes at work have made them concerned about their job security.
This is when productivity suffers. We know that employee stress has a direct impact on performance – and this can hit employers hard. In fact, the Corndel survey found that in 2023/24 alone, 16.4 million working days were lost due to work-related stress, depression, or anxiety.
It’s time for HR and business leaders to step up
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While employees are keen to learn new skills, the PwC research found that less than half (46%) agree that their employer provides adequate opportunities to do so. This has an impact on retention: two-thirds of employees (67%) say opportunities to learn new skills are a key factor in their decision to look for a new job.
“As workers face heightened uncertainty, rising workloads and continue to face financial stress, they are prioritising skills growth…,” said Carol Stubbings, PwC’s Global Markets and Tax & Legal Services Leader, in the PwC report. “…Employees are placing an increased premium on skills growth in a climate characterised by constant technological change. Employers must ensure they are investing in their employees and technological platforms to mitigate employee pressures and retain the brightest talent.”
What’s clear is that the complexity of today’s work environment requires a new approach from HR and business leaders – one that sees them take a more strategic, data-driven approach to workforce planning and employee financial wellbeing. Yet, a report by CIPD found that just 38% of companies today collect data to identify skills gaps within their organisation. While this leaves many organisations vulnerable to unexpected shortages and employee stress, forward-thinking firms can see this as an opportunity to differentiate themselves from the competition by embracing new solutions that are designed to help identify skills gaps, reduce stress, and improve performance outcomes.
Bridge the skills gap and boost financial wellbeing for employees
Best-of-breed technology can help HR and business leaders to bridge the skills gap and roll out employee financial wellbeing initiatives that reduce workplace stress and improve worker performance as a result. For example:
- Tools that leverage advanced analytics can give HR teams detailed insights into skills profiles and learning needs across the organisation. These insights enable employers to create personalised upskilling programmes that can reduce the pressure on overstretched employees and, in turn, reduce stress and improve productivity.
- Integrated financial wellbeing tools that foster key skills like budgeting can help employees manage their finances better, leading to increased satisfaction and productivity.
- Offering employee benefits like payroll savings schemes and flexible pay can help employees build financial resilience, improving engagement, efficiency, and retention.
Conclusion: Make skills development your competitive advantage
Organisations that take a strategic, data-driven approach to skills development and employee financial wellbeing can stand apart from the competition and reap significant rewards. Investing in honing employee skills and improving their overall financial wellbeing can reduce stress and create a happier, more productive workforce – a win-win for employees and employers alike
Key takeaways
- Seven million UK workers could be significantly under-skilled for their jobs by 2030, and this is a major cause of stress and burnout.
- Workload-related stress exacerbates stress from other work-related sources like financial stress.
- Employee stress has a direct impact on performance and productivity.
- HR and business leaders can help by taking a strategic, data-driven approach to workforce planning and employee financial wellbeing.
- Solutions that facilitate personalised skills development programmes, foster key skills like budgeting, and offer benefits such as payroll saving schemes, can have a big impact.
Want to effectively tackle skills, stress and performance?
Join our upcoming webinar where industry experts will unpack the latest research and offer practical tips to help you create a successful employee financial wellbeing strategy.
