A quick summary:
The current economic climate is increasing financial pressures on employees, leading to stress, distraction, and even burnout. But what can businesses do to help? Spoiler: it’s not just about pay rises and bonuses.
When it comes to employee benefits, financial wellbeing is often overlooked. Yet, with 80% of employees in the UK reporting that personal financial stress affects their work performance, it’s clear that this issue needs attention.
Why does financial wellbeing matter?
Financial stress impacts mental health, productivity, and overall job satisfaction. Employees struggling with money worries are more likely to experience anxiety, take more sick days, and be less engaged at work. Supporting financial wellbeing not only benefits individual employees but also leads to a more focused, motivated, and loyal workforce.
Practical steps businesses can take
- Start the conversation
Break the stigma around financial struggles by fostering an open workplace culture where employees feel comfortable discussing financial concerns without fear of judgment. - Offer financial education
Provide workshops, webinars, or one-on-one sessions with financial experts to help employees learn about budgeting, saving, and managing debt. - Introduce financially flexible benefits
Consider benefits like salary sacrifice schemes, student loan repayment support, or interest-free employee loans to ease financial burdens. - Provide access to financial wellbeing tools
Many platforms and services can help employees manage their finances better. Investing in these resources shows a company’s commitment to employee wellbeing. - Encourage emergency savings plans
Partner with organisations that help employees set up emergency savings accounts, ensuring they have a financial safety net for unexpected expenses.
Guest post from MONEY FIRST AID: How employers can take action
At MONEY FIRST AID, we work with businesses to provide employees with practical, non-judgmental support for financial wellbeing. Here’s what we’ve learned about how employers can make a real difference:
1. Acknowledge that financial stress exists
Many employees silently struggle with money worries. Simply recognising that financial wellbeing is as important as mental and physical health can create a more supportive workplace culture.
2. Provide accessible support
Employers can offer resources like budgeting tools, financial coaching, or confidential advice services. Making support easily accessible ensures employees don’t have to navigate financial stress alone.
3. Encourage healthy financial habits
Small changes, like promoting auto-enrolment in pension schemes or hosting savings challenges, can have a long-term impact on employees’ financial security.
4. Create a judgment-free zone
Many people feel embarrassed to talk about money problems. Ensuring that financial wellbeing initiatives are presented without stigma encourages employees to engage with available resources.
By embedding financial wellbeing into company culture, businesses can empower employees to take control of their finances, leading to reduced stress and a more productive workforce.
Supporting financial wellbeing is a business necessity. While pay raises can help, they’re not a long-term solution. Instead, providing education, resources, and access to financial wellbeing programmes fosters a culture of support and resilience.
By taking proactive steps, companies help employees manage financial stress, ultimately creating a healthier and more productive workforce. Want to learn more about how financial wellbeing can transform your team? Get in touch.
