While it’s positive to see the Government putting measures in place to support working people in its Budget announcement, including raising the minimum wage and continuing to freeze employee income tax and National Insurance thresholds many people are still likely to be worrying about their finances – particularly with the festive period around the corner.
Financial wellbeing, a state where individuals can meet their current and ongoing financial obligations, feel secure in their financial future, and make choices that allow good quality of life, is increasingly recognised as a vital component of overall wellbeing. Inevitably, financial uncertainty can have a negative impact on people’s mental health, wellbeing and consequently, their performance at work.
In the last year alone, an estimated 13 million workdays have been lost due to poor financial wellbeing, and nearly 70% of UK employers believe that financial pressure negatively affects performance. That’s why it is vital that businesses can spot the signs of financial stress, provide employees with the support they need and ensure they know where they can turn if they really do need some further professional help.
Here are five forward-thinking things you can do to reduce the stigma and help support your employees during periods of financial turbulence.
- Avoid making assumptions
Understanding that financial wellbeing varies greatly among individuals is crucial as a business leader, so avoid making assumptions about an employee’s financial health based on their income or role. Personalised approaches, like anonymous surveys or one-on-one discussions, can help identify stressors without stigma. Benenden Health’s survey of over 2,000 UK employees found that 31% of respondents identified financial wellbeing as their most significant challenge in managing day to day life.
- Leverage benefits and rewards
Enhancing employee benefits packages can significantly bolster their financial health and confidence. Offer flexible benefits, such as cashback vouchers and additional pension contributions where you can. In my experience, in organisations where high street discount vouchers are offered to employees take up can be low, therefore it’s important that their availability is communicated periodically.
These proactive approaches address the potential costs to employers linked to financial stress and underperformance, which can equate to as much as 17% of salary costs in absenteeism.
- Implement emergency fund policies
One way to offer relief in times of financial distress – and underscore your organisation’s commitment to its workforce – introduce policies that provide early salary access or the option to sell unused annual leave. This flexibility can offer a great solution for both employees and employers, given that poor financial wellbeing can equate to absenteeism and presenteeism issues.
- Find financial wellbeing advocates
Develop a network of financial wellbeing advocates within your company. Like mental health first aiders, these individuals can identify distress signals early and direct colleagues to the right resources. With mental health issues in the UK workforce costing employers nearly £35 billion annually, a comprehensive approach that includes financial support is essential.
Make sure your employees are also having regular one-to-ones with their managers, encouraging honest conversations and reassuring individuals that you are there to support them and not judge them.
- Developing comprehensive financial wellbeing strategies
It’s important to integrate financial wellbeing into your overall health strategies. Start small, seek ongoing feedback, and evolve strategies to align with workforce needs. A recent CIPD report explained that currently, just 11% of employers focus on financial wellbeing actively, so there is a significant opportunity for leaders to enhance their approach.
Supporting your team through financial turbulence benefits their health, productivity, and overall workplace morale. By adopting these innovative strategies, business leaders can create a thriving, resilient workforce equipped to handle financial challenges with confidence and assurance.
Encourage your employees to be honest and practical about their own spending. This can help to ease the financial pressure and prevent future problems from occurring. Often, it is important to know that there are many people in the same situation – especially at difficult times like in the lead up to Christmas – but let them know that the first positive step is asking for help.
www.benenden.co.uk
