Supporting your employees’ financial well-being
It probably comes as no surprise that outside of work, the single biggest stress reported by UK adults is worries about money.
It probably comes as no surprise that outside of work, the single biggest stress reported by UK adults is worries about money.
The latest CIPD research found over a quarter of employees say money worries affect their ability to do their job. This rises to nearly a third who say cost-of-living financial worries have negatively impacted their productivity.
We can all relate to money worries – whether it’s debt, savings or expenses. With the cost-of-living crisis growing, what can you do to support your employees who are worried about money or other financial pressures?
Firstly, what is financial well-being?
Financial well-being isn’t always about the amount of money you have. Whilst there’s no single definition of financial well-being we like how Barclays describe it:
“Being and feeling financially healthy and secure, today and for the future”.
Put another way, financial well-being is the absence of economic stress, economic hardship, strain, or pressure.
Why does financial well-being matter in the workplace?
Money worries = stress and this can often permeate into everyday life, including work. 4.2million working days are lost each year to absences relating to a lack of financial well-being each year, which highlights the financial well-being of your team shouldn’t be overlooked.
A lack of financial well-being negatively impacts the physical and mental health of individuals, causing higher levels of absence, lower productivity, and impaired performance.
Businesses who have implemented a financial well-being policy have found employees feel their job protects them from encountering poverty and that they are in control of their personal finances. However, only one in five employers currently have a financial well-being policy in place.
How can employers support employee financial well-being?
There are a number of ways businesses can support employee financial well-being, which isn’t just a pay rise. We’ve included some other ideas below:
- A wage that is higher than the voluntary living wage
- A workplace pension scheme with a 6% minimum employer contribution
- Employee Benefits programme – this can help salaries go further every month by offering discounts on common money troubles. This can include health insurance, discounts off food, drink & leisure.
- Being mindful of expenses – try to avoid additional work-related costs such as transport, meals and hotels or office supplies, and if you do offer expense, ensure they’re paid promptly.
- Debt counselling – an employee assistance programme may offer this as part of 24/7 employee helpline
- More opportunities for training and career growth
- Financial education – including how to spot financial scams, understanding financial abuse, financial fundamentals and mastering credit, and approaches to budgeting and saving.
- Training for line managers – invest in workshops for managers to help them identify and support colleagues who are having financial worries and what they can do to support them.