How to support your employees' financial wellbeing

Talking about money can be tough. But we need to encourage and empower people to have more open conversations about their finances – from pocket money to pensions – and continue these conversations year-round.

Research shows that people who talk about money:

• Make better and less risky financial decisions
• Have stronger personal relationships
• Help their children form good lifetime money habits
• Feel less stressed or anxious and more in control

Money worries are the most common cause of anxiety and the biggest cause of stress for employees in the UK. Research from Financial Capability (Strategy for the UK) reveals that :

🪙 18 million working hours are lost to financial stress in the UK every year

💸 1 in 4 workers have lost sleep over money worries

💳 59% of employees say current financial worries prevent them performing their best

Thankfully, 90% of employers agree that financial worries harm workplace performance and are willing to do more to help their employees.

What is financial wellbeing?

6 ways to support your employee's financial wellbeing

Financial stress is a reality for many employees, and it can have a significant impact on their overall wellbeing, productivity, and engagement at work. As an employer, you have a unique opportunity to support your team's financial health and create a more resilient, thriving workforce. 

But where do you start? In this blog, we'll explore practical strategies you can introduce to promote financial wellbeing in your workplace. Get ready to invest in your greatest asset - your people!

1. Offer competitive compensation and benefits

The foundation of financial wellbeing starts with fair, competitive compensation and a comprehensive benefits package. By offering salaries that align with industry standards and the cost of living, you can help your employees meet their basic needs and plan for the future.

Consider:

• Conducting regular market research and salary benchmarking, using a platform like Figures can help you do this. 
• Providing annual cost of living adjustments and merit-based raises
• Offering a robust benefits package, including health insurance, retirement plans, and paid time off
• Extending benefits to part-time and contract workers, when possible

2. Provide financial education and resources

Many employees struggle with managing their money, so offering support can ease their stress and improve their financial situation. By giving employees financial education and resources, you can empower your team to make informed choices and take control of their financial lives.

Consider offering:

• Financial wellness workshops and seminars
• Online financial education platforms and tools
• Access to financial advisors or coaches
• Regular communication and tips on financial topics

Topics to cover might include budgeting, saving, investing, debt management, and retirement planning. Make sure you tailor your resources to the interests of your workforce, you can do this by asking them what they would be more interested in learning more about. 

3. Offer financial benefits and perks 

Beyond traditional benefits, consider offering financial perks and programs that can help your employees save money, build wealth, and reduce financial stress.

Some ideas include:

• Employer-sponsored savings plans or emergency funds
• Housing or transportation stipends
• Employee discount programs for everyday expenses
• Financial wellness challenges or incentives

4. Create a culture of open communication 

Financial stress can be isolating and stigmatising, leading many employees to suffer in silence. By having a culture of open communication and support around financial topics, you can create a safe space for your team to share their challenges and ask for help.

Consider:

• Encouraging open conversations around financial wellbeing in team meetings and one-on-ones
• Creating employee resource groups or peer support networks
• Providing anonymous channels for employees to seek guidance or support
• Promoting mental health resources and support for financial stress

Remember, the goal is not to pry into employees' personal finances but rather to create an environment where they feel supported and empowered to ask for help when needed.

5. Offer flexible working options 

Financial stress often goes hand in hand with time poverty and work-life imbalance. By offering flexible work arrangements and supporting your employees' overall wellbeing, you can help reduce financial strain and create a more resilient workforce.

Consider offering:

• Flexible working options such as compressed hours, hybrid, and fully remote.
• Carer’s leave 
• Paid time off for personal or family needs
• Enhanced parental leave and childcare support

When employees have the flexibility and support to manage their personal lives, they're better able to focus on their work and make better financial decisions.

6. Monitor and evaluate your programs 

As with any workplace initiative, it's important to regularly monitor and evaluate the effectiveness of your financial wellness programs. By gathering data and feedback, you can identify areas for improvement and check that your efforts are making a meaningful impact.

Consider:

• Conducting regular employee surveys or focus groups
• Tracking participation rates and engagement in financial wellness programs
• Celebrating successes and sharing impact stories

Invest in your people

Supporting employee financial wellbeing is not just a nice-to-have - it's a strategic imperative for any organisation that wants to build a thriving, resilient workforce. By offering competitive compensation, providing financial education and resources, promoting open communication, and prioritising flexibility, you can create a culture that empowers your employees to take control of their financial lives.

Remember, when you invest in your people's financial wellbeing, you're investing in your company's future. So start small, but start today - your employees (and your bottom line) will thank you!