Financial Wellbeing is an Important part of our overall wellbeing
Here's what it is and why it's important...
Our wellbeing is important for all aspects of our lives, from being able to be productive and creative at work to being able to enjoy time with family but it’s not always easy to look after it. So, it’s no surprise that 64% of employees’ want more wellbeing support from their employer, whether that’s help with finances and living conditions, to health provisions (Cigna).
To support your staff wellbeing, it’s key to support all five pillars of wellbeing, helping them stay physically well, using technology in a healthy way, keeping people connected, supporting mental health and helping them minimise financial stress. If we are having trouble with just one of these pillars, it can affect our wellbeing as a whole.
Here’s what you need to know about financial wellbeing and how you can help your employees…
What is financial wellbeing?
Financial wellbeing is all about our ability to manage our money, plan our finances and be able to cope with any unexpected challenges.
As an employer it’s important to recognise that people will experience financial stress from time to time and to help remove the stigma around this. Financial wellbeing isn’t necessarily about how much people earn, it’s also about their borrowing, saving, and spending habits. That’s why it’s important to provide your employees with education, tools, and support to be able to manage their finances.
Why is financial wellbeing important?
When we’re having money troubles it can cause stress and worrying about money can lead to difficulty sleeping, both of which have an affect on our mental and physical health.
Our financial wellbeing can also impact our ability to do our work. According to research from CIPD, one in four workers in the UK said that money worries have affected their ability to do their job. This could lead to 1.63 million employees taking time off work, nearly 3 million employees struggling to focus at work and 3.6 million employees looking for a new job (Neyber).
How can employers help:
Talk to your employees:
The first step in helping your employees with their financial wellbeing is talking to them so you can understand what the cause of their issues is. They could be struggling with not knowing how to save money effectively, or difficulty with managing their bills. Ask what they would find most useful to help too, whether that’s discounts at stores they regularly shop in or financial education.
Offer benefits that can help and make sure they’re easy to access:
There are employee benefits out there that can help your employees save money, learn more about their finances and some can help with debt and savings. If you offer these benefits, it’s important to make them easy to access, to ensure that your employees can make the most of them. An employee benefits platform can help, as they can house all your benefits in one place.
Other employee benefits that can help with financial wellbeing are:
- Employee discounts and cashback: these can help your employees save money on everyday purchases, whether it’s their weekly food shop, new school shoes for their kids, or home decorating and DIY. Find out more about how cashback cards can help with financial wellbeing here.
- Salary deduct schemes: from everyday essentials, to a new car or phone, offering salary deduct schemes can help your employees spread some purchases over a fixed term by taking a deduction from their net pay every month, rather than having to save up or take out a credit card or high-street loan.
- Financial education: from advice on debt management, to budgeting tools learning how to manage our money can go along way to helping our financial wellbeing.
- Financial wellbeing services: from a safer option for a loan, to encouraging good saving behaviour and debt consolidation services. Offering financial wellbeing services can help many of your employees with their money troubles.
- Offer further support: an employee assistance programme can help your employees, they can give your staff someone to talk to about their finances in confidence and offer advice on how they can manage their money.
Reduce the stigma around talking about finances:
Talking about money troubles isn’t always easy, but not talking about them can make us feel alone and isolated. Educate line managers on how to have conversations around finances, what support is available for their team and where they can get help.
How we can help:
We know it isn’t always easy to know how to offer a financial wellbeing programme that benefits all employees. If you want to learn more about the ways you can support your employees’ health and wellbeing, why not get in touch with our experts? They can help guide you through solutions and plans you can put in place to help your staff.