Serious about supporting employees to thrive at work and beyond?
You need to take financial wellbeing seriously.
Why?
Well, in a recent survey, 59% of employees ranked “financial wellbeing” as the area where they want the most support from their employer over the next three years.
That’s a pretty compelling reason to ensure you’re doing the right things.
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What’s Going Wrong?
Times are tough for many. Higher inflation and the resulting increase in interest rates have only served to increase financial uncertainty and anxiety.
51% of working-age people in the UK live in households which have less than 3 months wages available in savings. Citizens Advice report that they dealt with 48,680 debt issues in January 2024.
It’s not just about the money. Financial wellbeing (or the opposite) has a significant impact on mental health. This can affect employees both professionally and personally.
Research by the CIPD shows:
“those who experience financial stress are more prone to absence from work. Financial stress manifests in several ways, including needing time to handle personal finances, or more serious issues such as emotional exhaustion and stress-related illness.”
(Source, page 6)
So, there are many reasons for employers to do what they can to help.
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How Can Employers Help?
There’s lots that employers can do to help with financial wellbeing.
1 – Financial Wellbeing
Financial wellbeing itself relates to how employees feel about their finances, not how much money they actually have.
Resources and approaches that can be used include:
- Ensuring employees can accessible credible information personalised to their circumstances and easy to understand.
- Facilitating access to financial advice or financial health checks.
- Running workshops, lunch and learn or similar events to cover relevant topics such as budgeting.
- Providing online tools that employees can browse and find specific information of interest to them.
The exact provision depends on each business’ nature and circumstances, particularly regarding the preferences of employees themselves. There are lots of options.
2 – Financial Protection
In addition to the provisions outlined above, financial protection provides a “safety net” so that employees can have peace of mind about their ability to provide for themselves and their family if the worst happens.
Many of our business clients find that providing this service gives them peace of mind – they never want to have an impossibly difficult conversation with an employee who has experienced a life-changing event.
Products that are available include:
- Income Protection – an ongoing income whilst unable to work, paid for by the insurer
- Critical Illness – a lump sum payment upon diagnosis of specific conditions, paid for by the insurer
- Death in Service – a lump sum payment made to those nominated by the employee upon their death, paid for by the insurer
Businesses may wish to provide this help as part of a duty of care to employees. Of course, there are also benefits such as improved retention, talent attraction, and productivity.
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Getting Started
Financial wellbeing is all about supporting your employees to thrive. The benefits, both for employees and your business, are clear. Start by exploring your options and consulting your employees to find out what will best fit your business.
Let us know if we can be of any help.
Steve Day
Independent Financial Adviser
LinkedIn Connect
