Financial Wellbeing: What is it and how can employers support.

It’s no surprise that more and more employees are finding themselves in a position where they are managing finances from month to month. The cost of living and inflation are showing no signs of easing, and with nearly half of employees experiencing a financial shock over the last 12 months financial wellbeing is at an all time low. 

Our financial wellbeing refers to how secure we feel about our finances now and in the future, being able to pay our regular bills, coping if unexpected bills creep up etc. 

We know that when we achieve financial wellbeing our overall wellbeing is improved, we can sustain better relationships, achieve greater productivity, are happier and less stressed. 

It’s not something an employer can fix alone, and as the cost of living is likely to be affecting you too, then pay increases may not be an option. There are some practical steps you can take to support employees: 

  • Paying a fair wage for the role is worth a mention, not only will this help you attract and retain employees, but it’ll also improve loyalty and culture
  • Offer financial education, internally or signpost to supportive resources. 
  • Review and discuss workplace pensions
  • Assess employee benefits and look to offer things that can help reduce financial pressure, voucher schemes, bike to work, discounted services. 
  • Signpost to debt support services
  • Offer flexibility/agile/hybrid working where feasible – this can help reduce commuting costs, childcare costs etc
  • Offer an employee helpline

Financial stress impacts on both physical and mental health and can lead to long term absences and a reduction in productivity, which is then an additional cost to the organisation. Its never too late to offer support, people are often too embarrassed to ask for help, so by opening up these conversations you can start making a positive change. We’d love to hear what other things you are doing to help support your employees – let us know!