Financial uncertainty pervades every area of our personal and professional lives. During the present times of uncertainty, rising living costs, and sky-high energy and fuel prices, it’s no surprise that financial stress is a concern for many.

According to The Mental Health Foundation, 1 in 10 UK adults experience financial stress and “when thinking about the next few months, UK adults are most concerned about not being able to maintain their standard of living (71%), heat their home (66%) or pay general monthly household bills (61%). Significantly, half (50%) of UK adults were at least a little worried about being able to afford food.

So, how can workplaces provide support? 

In this article, we tackle the subject of employees struggling financially and discuss how HR Managers can help alleviate this stress.

What Does Employee Financial Wellbeing Mean?

The Money and Pensions Service defines financial wellbeing as, “feeling secure and in control. It’s about making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future. In short: financially resilient, confident and empowered.”

Whether your employees are struggling to pay their bills or are worried about the finances involved in getting a mortgage, poor financial wellbeing can put a huge stress on people’s lives, causing a pervading sense of insecurity and unhappiness. 

Struggling financially can cause a lack of motivation, high levels of stress and distraction, an inability to concentrate, as well as feelings of hopelessness. Prolonged financial stress and uncertainty can also contribute significantly to mental health conditions such as depression, anxiety, and burnout. With 4 in 10 employees worrying about money, it is vital that employee financial wellbeing is prioritised more within the workplace.

7 Ways HR Managers Can Support Employee Financial Wellbeing

Here are some of the best ways you can support employees struggling financially in their financial wellbeing, now and in the future.

1. Set-up Regular Pay Reviews

According to CIPD, “the data shows that the percentage of workers saying that their employer was doing enough to support their financial wellbeing has dipped from 36% to 31%.” Setting up regular pay reviews is an excellent way to tackle this issue and proactively address employees’ financial concerns.

Whilst pay increases may not always be possible, regularly discussing wages is a great way to keep employees motivated towards their professional financial goals. Offering benefits such as bonus schemes and higher pension contributions are great ways to stay competitive, keep employees happy, and help employees struggling financially.

2. Financial Planning and Support

Sometimes the financial stress experienced by employees is the result of poor financial planning. In this case, it can be helpful to provide finance training and eLearning where employees can increase their knowledge and learn money-saving tips and tricks that could help alleviate some of their financial pressures.

Making resources available that support employees in their day-to-day money management is extremely important as it teaches people life-long skills about how to look after their money. From budgeting and savings to pension contributions, financial planning courses and eLearning resources are all helpful tools to alleviate employee financial stress.

3. Teach Stress Management Skills

Struggling financially takes a toll on employee mental and physical health, having an impact on day-to-day productivity, motivation, and overall well being. While employers and HR Managers should provide support where possible, it’s important employees learn how to manage their stress in a healthy way. This is because life is stressful and the unexpected can and does happen. It’s learning how to respond to this in a healthy way that makes a big difference.

Teaching stress management skills is essential. Investing in wellness programmes and hiring experts to lead in-person stress management sessions are great ways to support employees in this way. 

Investing in stress management techniques in the workplace goes far beyond alleviating employee financial stress, it will also have positive effects across your organisation, ultimately resulting in a healthier, happier workforce.

4. Encourage Transparency in the Workplace

Talking about money matters has always been hush-hush. As such, many people suffer in silence as they feel embarrassed to talk about struggling financially.

As an organisation, it is your responsibility to lead with transparency. This includes being open and honest with employees about changes in salaries, upcoming bonuses, appraisals, delayed salaries, promotions, and new job opportunities (to name a few). Transparency around financial matters in the workplace builds confidence among your employees. It shows that you care about their financial needs and are taking proactive steps to address their concerns.

5. Employ a Financial Wellness Professional

Employing a financial wellness professional or advisor (either full or part-time) is a great way to support your employees’ financial concerns. A financial wellness advisor can help employees with their money-related concerns and offer guidance and additional support when needed. 

Financial advisors provide a safe and confidential space to talk through financial concerns without the worry of judgement from co-workers or managers. What’s more, if your financial advisor feels your employee is struggling more than is healthy, they can direct said employee to counselling options or other forms of mental health support.

6. Help Subsidise Employee Costs

We all know the rising cost of living is taking its toll and many people are having to cut back on things like their food shop, clothing expenses, and entertainment. Employers and HR Managers can help alleviate some of this financial stress by subsidising food costs and providing lunch at work.

Most UK employees spend between £10-£15 on lunch every week. Subsidising employee meals can save your employees a significant amount of money. In fact, organisations who are already implementing these schemes are seeing their employees save around £429 per year on their food bills! 

Subsidising food costs also takes the pressure off deciding what to eat each day – whether employees head out to the shops or pack their lunch the night before – meaning it’s one less thing to worry about; helping make life that little bit easier.

7. Offer Flexible Working

Commuting is one of the biggest expenses employees face. From the rising cost of fuel to the extortionate costs of train tickets, it’s no wonder employees are experiencing such high levels of financial stress. 

A great way to combat this and show that you care is to offer flexible working arrangements. Flexible and hybrid working models are now more common than ever before and are making a huge difference to employee finances.

By partaking in flexible working arrangements, employees can feel more in control of their working life, outgoing costs, and weekly schedules. They can work from home rather than spending an hour a day commuting on the train. They can enjoy a more relaxing start to the day, less time sitting in traffic, and fewer financial constraints. It’s a simple way to reduce expenditure and help those who are struggling financially.

In Summary

Financial stress is a worry for many employees. However, we hope the tips in this article help you address this issue in your workplace so that you can have financially secure and happy employees.