Posted on: Wednesday July 13, 2022
Money is rarely discussed in the workplace. The good news is that we're moving toward a more open and communicative way of working where these conversations are becoming more commonplace. For this to be possible, employers must facilitate a safe work environment where employees can discuss financial woes with line managers and HR personnel. There is a strong connection between financial wellbeing and mental health. Therefore, an effective, well-integrated wellness strategy should consider the financial wellbeing of employees.
Why should employers get involved?
Presenteeism – this is where employees are at work but aren’t functioning at 100% because of health or other issues. When people feel well, they do well – employers should therefore have a vested interest in decreasing presenteeism and supporting staff to perform at their best. Financial stress can be one of many causes of a productivity drop.
According to the CIPD, as many as one in four UK workers report that money worries have affected their ability to do their job. [1]
It’s now accepted that financial stress can affect both employees' work and personal lives, employers are waking up to the fact that they can and should offer more support to their employees. We’ve started to see this with benefits packages and stakeholder pensions. Early intervention is key to financial wellness; employers should offer help before money problems become unmanageable. By pursuing a preventative strategy rather than a reactive approach, companies are giving their workforce the best chance of remaining healthy and productive, even in exceptional circumstances.
What can employers do to promote financial wellbeing?
Financial education
Financial wellbeing isn’t just about wealth, it’s about the control that they feel they have over their finances, and the skills and capability people have to manage their money.
Employers have a key role to play here. They can enable employees to make informed decisions, as well as help them feel more in control of their finances. Organisations can help their staff by signposting them to relevant guidance, information and support, as well as providing this themselves, either directly and/or through a trusted partner. For example, you could offer webinars or conferences, clinics, 1:1 financial mentoring, support groups, assessments and budgeting advice.
Debt advice
Let your workforce know that they can get free, confidential and independent money and debt advice from the government’s Money and Pensions Service. There are a number of charities and free organisations which can help work out the next steps; signpost employees towards the Money Advice Service’s tool to find the free debt advice providers and local services.
If you offer an Employee Assistance Programme (EAP), consider promoting this as somewhere to go for debt advice or mental health concerns around money worries. To find out more about supporting your employees with financial wellness, contact Personal Group and if you haven't already don’t forget to sign up to our blog.
[1] One in four people performing poorly at work due to money worries | CIPD
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