These days, financial worries can be a significant source of stress for employees in the UK workspace. With living costs climbing and wages stagnant, many people struggle to make ends meet even when working full-time hours. This means they often feel overwhelmed and unable to focus on their job or participate in team activities effectively due to this financial pressure.
Helping employees with financial wellness can be challenging due to various reasons though. Financial challenges can cause stress for employees, which may impact their ability to be engaged at work. Employees who feel that their employers do not care about their well-being, including financial wellness, may feel less engaged at work. While employees are seeking more from their employers to help them better manage their finances, it is difficult to create a financial wellness ecosystem that meets the needs of all employees. Additionally, some employees may not be aware of the services offered by their employer to assist with personal finances. Financial low-being can also jeopardise employee health and wellness.
The good news is that employers can do a lot to help their employees feel more secure about their financial situation. This article will examine how employers can promote financial wellness and help employees manage their money better.
What Is Employee Financial Wellbeing?
Financial wellness refers to an individual’s general understanding of their financial situation and ability to make wise decisions that will allow them to reach their long-term goals. A financially healthy employee feels secure in their current financial circumstances and has a plan for the future – whether it be buying a house, saving for retirement, or simply being able to manage their day-to-day expenses without stress.
Employers must understand that financial wellness significantly impacts their staff’s mental health and wellbeing. A report published by the Joseph Rowntree Foundation revealed that most of those surveyed said they had experienced money worries in the past year, with these worries having a negative knock-on effect on their mental health.
What Does Financial Wellbeing In The Workplace Look Like?
Financial wellbeing in the workplace looks different for everyone. It’s about how employees feel and manage their finances at home and in the office. Financial wellness encompasses an employee’s physical and mental health, which can directly affect motivation and productivity. For example, an employee with money worries may be more prone to stress and anxiety, leading to higher absenteeism and lower performance.
An excellent financial wellbeing plan is essential to maintaining a healthy and productive workforce. This doesn’t just mean providing the basics such as salary, pensions, and employee benefits; it means creating an environment which supports employees in all areas of financial wellness, like budgeting, saving, and investing. It’s important to remember that financial wellbeing is not just about income and salary but about having a secure financial future.
It’s important to remember that financial wellbeing is not just about income and salary but about having a secure financial future.
The Benefits of Employees Financial Wellbeing
Financial wellness isn’t just crucial for the wellbeing of employees, but it can also help employers in a variety of ways. For one thing, it can reduce absenteeism and improve productivity within the workplace. Employees who feel secure about their financial situation are more likely to be engaged in their work, take fewer days off and be more productive than those constantly stressed about money matters.
Financial wellness can also help retain good employees. If employers provide financial support to their workers and demonstrate that they care about their overall wellbeing, it can make them more likely to stay with the company long-term.
It can also be beneficial to employers’ reputations. Companies that are seen as compassionate and supportive of their employees will likely be more attractive to potential job seekers and therefore have an easier time attracting top talent.
Effective Ways to Foster Financial Wellness
Financial wellness is an essential component of any HR strategy, and there are plenty of methods employers can use to help their employees feel secure. Creating financial wellness programme can come in a number of simple steps such as:
Providing Financial Education
One of the most effective ways to help employees manage their money is to provide them with financial education. Companies can do this by organising seminars and workshops covering various topics such as budgeting, debt management and savings. These sessions should be interactive so employees can ask questions and clarify doubts.
At the same time, employers can use online resources such as videos, podcasts and articles to help employees learn more about money management.
Offering Financial Support Services
Another way to promote financial wellness in the workplace is by offering services that can directly support struggling employees. For example you can include in your financial wellbeing programme that employers can offer budgeting advice, debt counselling services and access to financial advisors. They should also ensure their employees know the free debt advice service available through their local authority or Citizen’s Advice Bureau if needed.
Setting Up a Savings Program
A great way to encourage employees to save is to set up a savings program. This could involve providing employees with matched contributions for any amount they save in their account or offering direct incentives such as gift cards and bonuses to meet their financial goals.
Usually, employers will set up a savings plan with an external provider and then deduct money directly from their employees’ pay-checks so that it is easier for them to save.
If this is done correctly, it can be an effective way to help employees build up their savings over time without too much effort.
Promoting Financial Wellness During Benefits Enrolment
Employee benefits are a vital part of any financial wellness program, and employers can use them to help encourage employees to take control of their finances. During the annual enrolment period, employers should clearly explain all the benefits available and provide employees with information about how they can use them most effectively to manage their money. By doing this, employers can ensure that employees know all the options available and help them make the most out of their benefits.
Employers can ensure that employees know all the options available and help them make the most out of their benefits.
Promoting Healthy Money Habits
One of the most important steps employers can take to improve financial wellbeing is to promote healthy money habits in the workplace. This could involve providing employees with tips and advice on budgeting, making wise investments and other effective ways to manage their money. To overcome poor financial health, you can also include organising regular team talks or lunchtime workshops where employees can learn more about financial planning and get expert advice.
Other Ways to Support Financial Wellness
In addition to the above steps to help with employee financial wellbeing, employers can support their employees’ financial wellbeing in other ways. For example, offering flexible working hours and remote work options can make it easier for employees to manage their finances. Similarly, providing access to onsite or online financial advice services is invaluable for giving staff the peace of mind they need.
Financial wellbeing at work is essential to overall employee wellbeing and should be taken seriously. By introducing initiatives that reduce financial money worries and financial stress, employers will not only be helping improve the lives of their employees, but they’ll also be creating a more productive, thriving workplace.
Poor financial wellbeing can be crippling for some, leading to mental health problems. But if you improve their financial wellbeing and give them hope of a healthy financial future with financial wellbeing support, you will become an employer of choice.
With the proper support and guidance, employers can make a real difference in the lives of their employees – leading to happier and healthier staff members who are better able to perform in their roles.