Four in five adults are worried about rising costs, according to latest ONS data. New research also reveals that one in five adults have fallen behind with at least one household bill payment. 

Business leaders have a duty of care to not only ensure that their business stays profitable and competitive in the coming months, but also to help their employees feel supported, reassured, and appreciated.  

So, what role do employers have to play in helping their employees through these challenging times and why, and how can they provide support which will make a real impact? 

The employer’s role
Helping to safeguard employees’ physical and mental wellbeing is a responsibility all employers hold. Financial hardship is a key factor contributing to poor mental health, with research suggesting that almost half of people in problem debt also have a mental health issue.  

Employers can make a significant difference to the wellbeing of their employees through the provision of financial support packages, which go over and above cash rewards. And there’s a strong business case for doing so. Employees are 12% more productive if they are happy, contributing to better products and services and boosting overall business profitability.  

Between current struggles and the looming financial storm predicated, now is the time for business leaders to consider and act in a targeted way to do more to protect and address employees’ financial wellbeing. Whilst many businesses are facing their own cost considerations and interdependency exists between a financially resilient workforce and an organisation’s positioning for business success. Whilst a fair and liveable wage must be in place to create the foundation for a dignified standard of living, it will be the case for many organisations that pay rises or one-off financial support packages are out of the question, therefore minds must turn to low cost, innovative ways companies can provide ongoing financial support to their employees, which when effectively targeted can arguably be equally as impactful. 

Here are three innovative ways business and HR leaders can make a difference: 

1. Normalise conversations about money at work
Building a culture of empathy, collaboration, and openness about personal finances is the first step every business should take. Currently, only half of employees feel their organisation supports their personal finances and almost one in four members of the workforce checks in to work with money related stresses on a daily basis. 

According to the CIPD, 81% of employees at companies with a financial wellbeing policy also say it’s important any future employer has an equivalent structure or process in place. A review of organisations with no financial wellbeing policy found that only 28% of employees believed their employer was doing enough to support their financial wellbeing.  

Cultivating an environment where employees feel comfortable talking about money is critical. While it can be a sensitive subject, an actionable and well received way of normalising these conversations is to open channels of communication through demonstrating the employer interest in the topic; this can include confidential employee surveys, acknowledging elements of the macro environment within team discussions, coupled with an open-door leadership style for informal one to one catch-ups. Running company wide activities that promote and raise awareness of financial wellbeing can also help. Ensuring line managers are adequately aware and trained in the organisation’s financial wellbeing infrastructure is key to ensure that effective signposting to EAP, financial education resources and where appropriate debt management services can take place. 

2. Help employees save on every day spending  
A third of Brits have less than £600 in savings and almost one in 10 have no savings at all. Alarmingly, four in 10 UK adults don’t have enough in savings to live for a month without income. Many employees will have very little, if any, room for manoeuvre when it comes to their finances.  

Any financial support employers can offer to help save on their everyday expenses will make a meaningful difference. Our research found that employees could save £1,679 per year by using employer provided programmes. Based on the average UK salary for 2022 this saving represents around 4.5% of the annual salary and that this support positively impacts mental and physical wellbeing. 

From prepaid recognition cards to boost morale and reward performance whilst providing welcome financial relief, to corporate gym memberships and retailer discount schemes to help ease frequent bills, initiatives introduced that help people cut cost and allow their wages to go further all contribute to better positioning to boost individual financial health. For employers, this means less interference to productivity and better wellbeing amongst the workforce, which in turn can increase business results. It’s a win-win situation. 

3. Open up access to financial education and support
Employers must also do what they can to ease anxiety about finances by bridging the education gap to enable employees to make the best money decisions. Further to strengthening the importance of confident communication around personal financial situations, employers can take the additional step of offering education to their employees.  

Whether it’s helping employees to understand their payslips, ensuring financial information such as pension contributions and benefit schemes are clear, or making employees feel comfortable about raising concerns or questions about pay, providing access to guidance is a simple and highly effective measure that companies can implement.  

Employees want to learn how to save better through financial education, resources, and products. In fact, half of employees have expressed a desire for their employer to provide essential advice. Education can take various forms, from offering one to one financial coaching to publishing resources of services and tools available, including financial planners.  

4. Support employee’s financial wellbeing today
People who have strong financial resilience are less stressed about money. This has positive effects on their overall mental and physical health, and on productivity. By offering employee benefits that help incomes go further, sign posting relevant financial advice and guidance, and creating a safe place to talk about money worries, employers can make a big difference to people’s lives and to business performance.